S&P rates Spring Education loan B-

S&P said it assigned its B- issue-level rating and 3 recovery rating to Spring Education Group Inc.'s proposed $850 million senior secured first-lien term loan due in 2030 and $100 million revolving credit facility due 2028.

The company plans to use the proceeds to repay its first-lien term loan due in 2025 ($611 million outstanding), second-lien term loan due in 2026 ($225 million outstanding), and cover transaction fees and expenses. Additionally, the new revolver reflects an upsized commitment to $100 million and an extended maturity to 2028 (undrawn).

“Although the change in capital structure will result in a higher amount of first-lien debt and somewhat lower recovery prospects for first-lien debt holders, our recovery and issue-level ratings on the company's first-lien debt remains unchanged due to a revised company valuation at emergence to reflect recent acquisitions,” S&P said in a news release.

The B- issuer credit rating and stable outlook on Spring are unchanged.

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