By Abigail W. Adams
Portland, Me., Feb. 12 – Adtalem Global Education Inc. priced an upsized $800 million, from $650 million, offering of seven-year senior secured notes (B1/BB-) on Friday at par to yield 5˝%, according to a market source.
Pricing came on top of talk for a yield of 5˝%.
Lead left bookrunner Morgan Stanley & Co. LLC will bill & deliver. Barclays, Credit Suisse Securities (USA) LLC, MUFG and Fifth Third Securities Inc. were also joint bookrunners for the Rule 144A and Regulation S offering.
The notes are non-callable until March 1, 2024 with first call 102.75.
The issuing entity will be Adtalem Escrow Corp., which is to be merged with and into Adtalem Global Education.
The Chicago-based workforce solutions provider plans to use the proceeds to help fund its acquisition of Walden University from Laureate Education Inc. for $1.48 billion and to refinance Adtalem’s existing debt.
| Issuer: | Adtalem Escrow Corp.
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| Amount: | $800 million
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| Maturity: | March 1, 2028
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| Securities: | Senior secured notes
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| Bookrunners: | Morgan Stanley & Co. LLC (bill and deliver) Barclays, Credit Suisse Securities (USA) LLC, MUFG and Fifth Third Securities Inc.
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| Coupon: | 5˝%
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| Price: | Par
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| Yield: | 5˝%
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| First call: | March 1, 2024 at 102.75
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| Trade date: | Feb. 12
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| Settlement date: | March 1
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| Ratings: | Moody's: B1
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| S&P: BB-
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 5˝%
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| Marketing: | Roadshow
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