Cambium Learning sets price talk on first- and second-lien term loans

By Sara Rosenberg

New York, Nov. 28 – Cambium Learning Group Inc. announced price talk on its $320 million first-lien term loan (B2/B-/BB) and $130 million second-lien term loan (Caa2/CCC/CCC+) with its bank meeting on Wednesday, according to a market source.

Price talk on the first-lien term loan is Libor plus 450 basis points with no Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan is Libor plus 850 bps with no Libor floor and a discount of 99, the source said.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $500 million of credit facilities also include a $50 million revolver (B2/B-/BB).

RBC Capital Markets, Deutsche Bank Securities Inc., Barclays and BMO Capital Markets are the bookrunners on the deal.

Commitments are due at noon ET on Dec. 11.

Proceeds will be used to help fund the buyout of the company by Veritas Capital for $14.50 in cash per share.

Closing is expected this quarter or in the first quarter of 2019, subject to customary conditions and regulatory approvals.

Cambium is a Dallas-based educational technology solutions company.

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