Spring Education updates first- and second-lien term loan pricing

By Sara Rosenberg

New York, July 26 – Spring Education Group (SSH Group Holdings Inc.) firmed pricing on its $535 million first-lien term loan (B2/B-) at Libor plus 425 basis points, the low end of the Libor plus 425 bps to 450 bps talk, and on its $225 million second-lien term loan (Caa2/CCC) at Libor plus 825 bps, the tight end of the Libor plus 825 bps to 850 bps talk, according to a market source.

Also, a step-down was added to the first-lien term loan to Libor plus 400 bps if total leverage is less than 6 times, and the original issue discount was tightened to 99.75 from 99.5, the source said.

The first-lien term loan still has a 0% Libor floor and 101 soft call protection for six months, and the second-lien term loan still has a 0% Libor floor, an original issue discount of 99 and 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.

Recommitments were scheduled to be due at 1 p.m. ET on Thursday, 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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