McGraw-Hill upsizes, tightens talk; Cision talks $1.1 billion loan; ATI accelerates timing

By Paul A. Harris

Portland, Ore., April 28 – Cash loans ended marginally higher on Thursday, according to a market source.

The question is, how will loans open on Friday, given the big drop in stock prices which materialized late Thursday, the source remarked.

In the primary market, McGraw-Hill Global Education Holdings LLC upsized its loan and tightened talk. Cision put out price talk on its $1.1 billion seven-year term loan B, and ATI Physical Therapy moved up the deadline on its $635 million term loan.

McGraw-Hill upsizes, tightens

McGraw-Hill upsized its six-year first-lien covenant-light term loan (Ba3/BB-) by $270 million to $1,575,000,000 from $1,305,000,000.

The proceeds were shifted from the concurrent junk bond deal, which downsized to $400 million from $670 million.

In addition to the upsizing, spread talk on the loan tightened to 400 basis points from 475 bps. And the offering price richened to 99.5 from 99.

Unchanged were the 1% Libor floor and the 101 soft call protection for six months.

Commitments were due on Thursday.

The deal is set to allocate on Friday or else early in the week ahead.

Credit Suisse the left lead bank on the deal.

The $1,925,000,000 credit facility (upsized from $1,655,000,000) also includes a $350 million five-year revolver.

Proceeds will be used to refinance existing debt, merge McGraw-Hill School Education into the McGraw-Hill Global Education credit group and fund a dividend, the source added.

Cision sets talk

Cision talked $1.1 billion seven-year term loan B (B1/B+) with a 575-bps spread to Libor atop a 1% Libor floor at 98.00.

The deal comes with six months of soft call protection at 101, and features a total net leverage ratio covenant.

Commitments are due at noon ET on May 12.

Deutsche Bank is the left bookrunner. Barclays and RBC are the joint bookrunners.

Proceeds will be used to fund the acquisition of PR Newswire from UBM plc.

ATI accelerates timing

ATI Physical Therapy moved up the deadline on its $635 million seven-year first-lien term loan (B1/B) to 5 p.m. ET Friday.

Previously books were expected to stay open until May 5.

As reported, the deal is talked at Libor plus 500 bps with a 1% Libor floor at 98 to 99. It features 101 soft call protection for six months.

Barclays, HSBC and Jefferies are the bookrunners.

The $930 million credit facility also features a $70 million five-year revolver and a $225 million eight-year second-lien term loan.

Proceeds will be used to help fund the buyout of the company by Advent International from KRG Capital Partners.

Pabst talks incremental loan

Pabst Brewing Co. talked its $135 million incremental term loan due Nov. 13, 2021 with a 450-bps spread to Libor at 99.5.

The spread will float atop a 1% Libor floor.

The paper come with six months of soft call protection at 101.

Commitments are due on May 5.

The spread and the Libor floor are the same as those of the existing term loan.

UBS is the left lead for the deal, which will be fungible with the existing term loan.

There will also be certain amendments to the credit agreement. There is a 5-bps consent fee on the amendment. Consents are also due on May 5.

The issuing entity will be Blue Ribbon, LLC, the parent of the Los Angeles-based brewing company.

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