Blackboard talks $365 million six-year notes to yield 7¾%-8%

By Paul A. Harris

Portland, Ore., Oct. 23 - Blackboard Inc. talked its $365 million offering of six-year senior notes (Caa1/CCC+/) to yield 7¾% to 8% on Wednesday, according to a syndicate source.

Books close at noon ET on Thursday, and the deal is set to price thereafter.

BofA Merrill Lynch is the left bookrunner for the Rule 144A for life and Regulation S deal. Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC are the joint bookrunners.

The notes become callable in two years at par plus 75% of the coupon, and they feature a two-year 40% equity clawback.

Proceeds plus cash on hand will be used to refinance the company's second-lien term loan.

Blackboard is a Washington, D.C.-based provider of enterprise software applications and related services to the education industry.

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