SkillSoft talks $310 million eight-year senior notes to yield 11¼% area, modifies covenants

By Paul A. Harris

St. Louis, May 20 - SSI Investments II Ltd. and SSI Co-issuer LLC, financing units of SkillSoft plc, talked a $310 million offering of eight-year senior unsecured notes (Caa1/B-) with a yield in the 11¼% area, informed sources said on Thursday.

The bond covenants were also modified, sources said.

The deal is expected to price on Monday.

Morgan Stanley, Barclays Capital and Deutsche Bank are the joint bookrunners for the Rule 144A and Regulation S with registration rights offering.

The notes come with four years of call protection.

Proceeds, together with a new $365 million credit facility and an equity contribution, will be used to fund the acquisition of SkillSoft by an investor group comprised of Berkshire Partners LLC, Advent International Corp. and Bain Capital Partners LLC.

The group is purchasing SkillSoft for $11.25 in cash per share. The fully diluted equity value of the transaction is $1.2 billion.

SkillSoft is a Dublin, Ireland-based provider of on-demand e-learning and performance support services for global enterprises and for government, education and small- to medium-sized businesses.

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