FullBloom completes $385M term loan for buyout at tight end of talk; terms

Investors have received allocations of the $385 million seven-year first-lien term loan for FullBloom that will back the acquisition of the company by American Securities, according to sources The term loan priced at a margin of 425 basis points over the secured overnight financing rate, plus a credit spread adjustment, with a 0.75% floor and an original issue discount of 99 via a J.P. Morgan-led arranger group. The term loan freed to a 99.25/100.25 market. The facility has a 25-basis-point margin step-down at 3.99x first-lien leverage and an additional IPO-based step-down of 25 bps. The MFN protection was revised to 50 bps for 12 months with no carve-outs, from 75 bps with a six-month sunset and various carve-outs, while several other documentation changes were made. Additional financing includes a $75 million, five-year revolver, to be undrawn at close, with a springing first-lien leverage covenant and a $100 million second-lien term loan, rating agencies note. FullBloom is a national provider of academic intervention and behavioral health services for children with special needs and students struggling academically in school.

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