Cengage Learning, Accuvant break; Eyemart Express, Capella Healthcare revisions surface

By Sara Rosenberg

New York, Dec. 15 – Cengage Learning Acquisitions Inc.’s add-on term loan made its way into the secondary market on Monday with the debt seen bid in line with its original issue discount.

Also, Accuvant set pricing on its first-lien term loan at the high end of revised guidance while modifying the original issue discount, firmed the spread on its second-lien term loan at the wide of talk and then freed up for trading as well.

In more happenings, Eyemart Express LLC tightened the spread and original issue discount on its term loan B, Capella Healthcare Inc. lowered pricing on its term loan and Vogue International pulled its add-on term loan from market.

Cengage Learning’s fungible $300 million tack-on covenant-light senior secured term loan due March 31, 2020 began trading on Monday with levels quoted at 99 bid, 99½ offered, according to a trader.

Pricing on the tack-on term loan is Libor plus 600 basis points with a 1% Libor floor, which matches the existing term loan, and it was sold at an original issue discount of 99. The tack-on loan and the existing $1,741,000,000 term loan are getting 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund a dividend to shareholders.

The dividend is expected to be paid on Dec. 30.

As part of the transaction, existing lenders are being paid a 25 bps amendment fee.

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