Springer talks $1.55 billion term loan at Libor plus 400-425 bps

By Sara Rosenberg

New York, July 8 - Springer Science + Business Media released price talk on its $1,553,000,000 seven-year first-lien covenant-light term loan ahead of its Tuesday bank meeting, according to a market source.

The U.S. term loan is talked at Libor plus 400 basis points to 425 bps with a 1% Libor floor and an original issue discount of 99, the source said.

The company is also getting a €565 million seven-year first-lien covenant-light term loan that is talked at Euribor plus 425 bps to 450 bps with a 1% floor and a discount of 99, and a €150 million revolver.

A bank meeting for European investors took place last week.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Barclays, Nomura and UBS Securities LLC are the lead banks on the deal.

Proceeds will be used to help fund the buyout of the company by BC Partners from EQT Partners and the Government of Singapore Investment Corp. for around €3.3 billion.

Other funds for the transaction will come from €640 million of subordinated debt that has been privately placed with Goldman Sachs Mezzanine fund.

Senior leverage is about 5 times, and total leverage is just shy of 7 times.

Commitments are due on July 23.

Springer is a Berlin-based STM publisher that provides scientific, professional and academic media content.

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