School Specialty moves up deadline on $125 million term loan

By Paul A. Harris

Portland, Ore., May 16 - School Specialty Inc. moved up the deadline on its $125 million six-year first-lien term loan, according to a market source.

Commitments were due at Thursday's close. Previously, the book was expected to remain open until Friday.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Price talk on the loan is Libor plus 850 basis points with a 1% Libor floor and an original issue discount of 98.

The loan has call protection of 102 in year one and 101 in year two, the source said.

Covenants include maximum total leverage and interest coverage ratios.

Proceeds will be used to help fund the company's exit from Chapter 11.

In addition to the term loan, the company is getting a $175 million ABL revolver that is being led by Bank of America Merrill Lynch and SunTrust Robinson Humphrey Inc.

School Specialty is a Greenville, Wis.-based education company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.