GEMS Education refinancing to include $800 million equivalent secured notes

By Paul A. Harris

Portland, Ore., July 12 – GEMS Education plans to issue $800 million equivalent of senior secured notes as part of a debt refinancing related to the acquisition of a stake in the company by a CVC Capital Partners-led consortium, according to a market source.

The deal will come in tranches of $500 million of dollar-denominated notes and $300 million equivalent of euro-denominated notes.

Goldman Sachs & Co. is the left global coordinator. Credit Suisse Securities (USA) LLC is also a global coordinator. Citigroup Global Markets Inc. and HSBC Bank are the joint bookrunners.

The financing also includes an $850 million term loan B which is expected to feature a euro-denominated tranche, the size of which remains to be determined.

The term loan kicks off at a bank meeting on Tuesday.

Proceeds will be used to help refinance existing debt following the acquisition of a roughly 30% stake in the company by the CVC Capital-led consortium.

Closing is expected by the end of July.

Concurrently with the CVC transaction, GEMS Education will acquire 14 schools in the UK and one in Switzerland.

GEMS Education is a Dubai-based provider of private K-12 education.

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