Spring Education launches $848 million term loan at SOFR plus 400 bps

By Sara Rosenberg

New York, April 16 – Spring Education Group launched on Tuesday its $848 million covenant-lite first-lien term loan due October 2030 with price talk of SOFR plus 400 basis points with a 0% floor, an original issue discount of 99.75 for new money and an issue price of par for existing lenders, according to a market source.

The term loan has 101 soft call protection for six months.

Current and expected ratings are B3/B-.

Macquarie Capital (USA) Inc. is the arranger and bookrunner on the deal.

Commitments are due at noon ET on Friday.

Proceeds will be used to reprice the company’s existing term loan down from SOFR plus 450 bps with a 25 bps step-down tied to total net opco leverage and a 0% floor.

Spring Education, backed by Primavera Capital, is a Campbell, Calif.-based private pre-K through 12th grade school operator.

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