Moody's gives Spring Education loans B2

Moody's Investors Service said it assigned B2 ratings to Spring Education Group's planned first-lien credit facility consisting of a $100 million five-year revolver due 2028 and a seven-year $850 million term loan due 2030.

The company's ratings including the B3 corporate family rating, B3-PD probability of default rating and stable outlook are unchanged, the agency said.

The term loan will be used to repay the first-lien and second-lien term loans as well as related transaction fees.

“The refinancing transaction is credit positive because it extends the maturity profile for the company while lowering cash interest cost. Interest savings from the refinancing are estimated to be about $5 million a year because of the elimination of the higher-cost second-lien term loan,” Moody’s said in a press release.

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