Cengage Learning to launch $1.95 billion credit facility on Thursday

By Sara Rosenberg

New York, Feb. 18 - Cengage Learning Acquisitions Inc. is set to hold a bank meeting at 1:30 p.m. ET in New York on Thursday to launch a $1.95 billion credit facility, according to market sources.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc. and KKR Capital Markets are the lead banks on the deal.

The facility consists of a $200 million ABL revolver and a $1.75 billion six-year first-lien covenant-light term loan, sources said.

Price talk on the term loan is Libor plus 700 basis points with a 1% Libor floor and an original issue discount of 99, the source continued.

Commitments are due on March 5.

Proceeds will be used to help fund the company's emergence from Chapter 11.

Cengage is a Stamford, Conn.-based provider of teaching, learning and research services for the academic, professional and library markets. The company filed for bankruptcy on July 2, 2013 in the U.S. Bankruptcy Court for the Eastern District of New York and the Chapter 11 case number is 13-44106.

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