Cengage $625 million term loan priced at Libor plus 375 bps

By Sara Rosenberg

New York, June 6 - Cengage Learning's new $625 million incremental term loan due 2014 is priced at Libor plus 375 basis points, with a 3.75% Libor floor, according to a market source.

The term loan has call protection of 102 in year one and 101 in year two.

It has been put away by a sponsor led consortium of investors, the source added.

RBS Securities acted as the lead bank on the deal.

Proceeds from the loan, along with $132.5 million of equity and cash on hand, were used to fund the recently completed acquisition of Houghton Mifflin's college division for around $768.3 million.

Cengage is a Stamford, Conn., provider of print and digital instructional and reference materials for the higher education and library reference markets.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.