Cambium Learning gets $135 million five-year term loans, revolver

By Susanna Moon

Chicago, Dec. 11 – Cambium Learning Group, Inc.’s wholly owned subsidiary, Cambium Learning, Inc., obtained a new $135 million five-year credit facility on Thursday, according to an 8-K filing with the Securities and Exchange Commission.

The facility consists of a $70 million term loan A, a $35 million term loan B and a $30 million revolving credit facility, which will be secured by a lien on substantially all of the company’s assets.

Interest initially will be Libor plus 450 basis points for the term loan A and revolver with a 1% floor and 50 bps unused fee. After that, the spread will range from Libor plus 375 bps to 450 bps, based on leverage. For the term loan B, interest is initially Libor plus 525 bps with 1% Libor floor.

At closing, the borrower was funded $200,000 of the revolver.

Cambium said it will use loan proceeds to call its $140 million of outstanding 9¾% senior secured notes due 2017 for redemption on Feb. 15.

Webster Bank, NA is the joint lead arranger, administrative agent and a lender. The Bank of Ireland is a joint lead arranger and syndication agent. Capital One NA and Babson Capital Finance, LLC are the co-documentation agents.

The facility matures on Dec. 10, 2020.

“This new credit facility provides us with a debt structure that better matches our seasonal capital needs at a significantly lower cost of capital,” John Campbell, chief executive officer of Cambium, said in a company press release.

Cambium is a Dallas-based education services provider focused on at-risk and special needs students.

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