Global Knowledge shifts first-lien term loan discount back to 99

By Sara Rosenberg

New York, Jan. 28 – Global Knowledge Training LLC changed the original issue discount on its $175 million six-year first-lien term loan (B1/B+) to 99 from revised talk of 98˝, which put it back in line with initial talk of 99, according to a market source.

Pricing on the first-lien term loan is Libor plus 550 basis points with a 1% Libor floor, and it has 101 soft call protection for one year.

The company’s $245 million credit facility also includes a $20 million revolver (B1/B+) and a $50 million seven-year second-lien term loan (Caa1/B).

The second-lien term loan is priced at Libor plus 950 bps with a 1% Libor floor and a discount of 98 and has call protection of 103 in year one, 102 in year two and 101 in year three.

Earlier in syndication, the spread on the first-lien term loan was increased from Libor plus 525 bps, pricing on the second-lien term loan was lifted from Libor plus 900 bps, the discount on the second-lien loan widened from 98˝, and a maximum total leverage covenant was added to the initially covenant-light term loans.

Recommitments were due at 5 p.m. ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC, Macquarie Capital and ING are the leads on the deal.

Proceeds will be used to help fund the buyout of the company by Rhone Capital LLC from MidOcean Partners.

Global Knowledge is a Cary, N.C.-based provider of IT and business skills training.

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