Ascend Learning wraps $2B 1st-lien, $755M 2nd-lien term loans; terms

Investors have received allocations of the $2.005 billion first-lien and $755 million second-lien term loans that will be used to refinance Ascend Learning LLC's existing capital structure and fund a distribution to shareholders, according to sources. The seven-year first-lien term loan priced at the tight end of talk at L+350, with a 0.50% Libor floor and an original issue discount of 99.5. The eight-year second-lien term loan cleared tight to talk at L+575, with a 0.50% floor and an OID of 99.75. The first-lien tranche was initially quoted at 99.625/100.125 following allocations, while the second-lien tranche is quoted at 100.5/101.5. Barclays is left lead arranger and administrative agent on the first-lien tranche, and Goldman Sachs is left lead and agent on the second-lien tranche. The dividend will total $1.138 billion, according to S&P Global Ratings. In addition to the term loans, the company will have a $230 million revolver due 2026, undrawn at close, with a springing first-lien net leverage covenant. Ascend Learning, based in Burlington, Mass., is a provider of healthcare-related educational services.

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