Cambium Learning launches $350 million add-on term loan at 99.75 OID

By Sara Rosenberg

New York, March 9 – Cambium Learning Group launched on Tuesday its fungible $350 million add-on first-lien term loan with original issue discount talk of 99.75, according to a market source.

Pricing on the add-on term loan is Libor plus 450 basis points with a 0.75% Libor floor.

The add-on term loan has 101 soft call protection through Sept. 21, the source said.

RBC Capital Markets is the lead on the deal.

Commitments are due at 5 p.m. ET on March 16, the source continued.

Proceeds will be used to refinance $348 million of existing second-lien term loans.

Pro forma for the transaction, the first-lien term loan will total $1.324 billion.

The company added a 0.75% Libor floor to the existing first-lien term loan as part of an amendment in December. Prior to the amendment, the floor was 0%. However, the 0.75% Libor floor doesn’t become operative until a disposition occurs, which likely will happen during the week of March 18, so all of the first-lien term loan debt will be fungible, the source added.

Cambium is a Dallas-based end-to-end provider of K-12 instructional and assessment solutions.

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