McGraw-Hill Education completes $575M add-on term loan for M&A; terms

McGraw-Hill Education Inc. completed its $575 million incremental term loan B that will be used to finance an acquisition, according to sources. The add-on priced in line with talk at an original issue discount of 99 via a BofA Securities-led arranger group and is fungible with the issuer's existing covenant-lite TLB due July 2028 that is priced at L+475, with a 0.50% Libor floor. Proceeds from the deal will be used to finance the acquisition of Achieve3000 Inc. at an enterprise value of about $675 million and to pay fees and expenses. The deal will also be funded with $125 million of equity, Moody's notes. Achieve3000, based in Red Bank, N.J., operates a cloud-based literacy platform that provides instruction and learning acceleration for Pre-K-12 students. McGraw-Hill Education, backed by Platinum Equity, is a global provider of educational materials in the higher education and K-12 markets and is a content provider in medical, technical and business professional training.

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