Colibri Group sets talk for $645M term loan; commitments due March 7

Colibri Group has launched a $645 million first-lien term loan that will be used to refinance debt and fund acquisitions, according to sources. Commitments to the deal are due by 5 p.m. ET on March 7.

Price talk for the seven-year term loan is a spread in the area of 500 basis points over the secured overnight financing rate, plus a credit spread adjustment, or CSA, with a 0.75% floor and an issue price of 99. The CSA is 10 bps for the one-month rate, 15 bps for the three-month rate and 25 bps for the six-month rate. Lenders are offered six months of 101 soft call protection.

At talk, the yield to maturity is around 6.07%.

Jefferies, Macquarie, Capital One, Golub Capital and SMBC are joint lead arrangers on the deal.

Facility ratings are B-/B2, with a 3 recovery rating from S&P Global Ratings. Corporate ratings are B-/B3, with stable outlooks. McKissock Investment Holdings LLC is the borrower.

Proceeds from the deal, together with a privately placed $180 million second-lien term loan due 2030 and $100 million of new equity, will be used to refinance the company's existing debt and fund the acquisitions of Becker Professional Education and OnCourse Learning from Adtalem Global Education, which were announced in January.

As for existing debt, Colibri has a covenant-lite first-lien term loan due June 2028 (L+500, 0.75% Libor floor) that totaled $405 million following an add-on in August 2021.

In addition to the new term loans, the company will have a $50 million revolver due 2027 with a springing first-lien net leverage covenant.

Colibri Group, backed by Gridiron Capital, is a provider of career life cycle management for mandatory professional education solutions across five core end markets, including financial and accounting services, real estate, healthcare, valuation and property services, and teaching.

* Article updated at 4:42 p.m. ET on Feb. 22, 2022, to add CSA information.