Spring Education talks $850 million term B at SOFR plus 450-475 bps

By Sara Rosenberg

New York, Sept. 18 – Spring Education Group is talking its $850 million seven-year term loan B at SOFR plus 450 basis points to 475 bps with an original issue discount of 98.5 and 101 soft call protection for six months, according to a market source.

Floor and commitment deadline for the term loan are expected to emerge in connection with the company’s lender call on Tuesday.

The company’s $950 million of credit facilities (B2) also include a $100 million five-year revolver.

Macquarie Capital (USA) Inc. and Goldman Sachs Bank USA are the leads on the deal.

Proceeds will be used to refinance existing credit facilities, including a $611 million first-lien term loan currently priced at SOFR+CSA plus 400 basis points and a $225 million second-lien term loan priced at SOFR+CSA plus 825 bps.

The CSA on the existing term loans is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Spring Education is a Campbell, Calif.-based provider of pre-K through 12th grade education.

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