Spring Education sets first-, second-lien term loan talk with launch

By Sara Rosenberg

New York, July 10 – Spring Education Group (SSH Group Holdings Inc.) announced price talk on its $535 million first-lien term loan (B2/B-) and $225 million second-lien term loan (Caa2/CCC) in connection with its bank meeting on Tuesday, according to a market source.

Talk on the first-lien term loan is Libor plus 425 basis points to 450 bps with a 0% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan is Libor plus 825 bps to 850 bps with a 0% Libor floor and a discount of 99, the source said.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

The company’s $800 million of credit facilities also include a $40 million revolver (B2/B-).

Macquarie Capital (USA) Inc. is the lead on the deal.

Commitments are due on July 24, the source added.

Proceeds will be used to help fund the acquisition of Nobel Learning Communities Inc., a West Chester, Pa.-based network of private schools, from Investcorp and the acquisition of California schools of LePort Montessori.

Spring Education, a Primavera Capital Group portfolio company, is a provider of pre-K through 12th grade education.

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