McGraw Hill completed a series of refinancing transactions involving $400 million of senior secured notes and $930 million of senior secured term loans, while also extending other debt maturities and increasing revolving credit capacity.
The company’s McGraw-Hill Education subsidiary issued $400 million of 8% senior secured notes due 2033.
It also closed a $930 million senior secured term loan facility.
Proceeds from the transactions were used to fully redeem McGraw Hill’s outstanding 5.75% secured notes due 2028 and refinance its existing term loan facility.
The company also refinanced its senior secured cash flow revolving credit facility.
That facility’s maturity was extended to October 2031.
Available commitments were increased to $150 million, while the applicable interest rate was reduced.
McGraw Hill separately amended its asset-based revolving credit facility to extend its maturity to October 2031.
The refinancing follows a $50 million principal prepayment completed earlier in October.
McGraw Hill said the transactions extend its maturity profile and support continued reductions in gross debt.
The company remains focused on reaching a net debt-to-adjusted EBITDA leverage ratio of between 2x and 2.5x.
KEY QUOTES:
“We continue to reduce gross debt while we proactively extended our maturity wall, optimizing market conditions and recent rating agency upgrades, marking another step in our efforts to strengthen our capital structure over time.”
“These transactions offer us the ability to continue to reduce our gross debt over time, as we remain firmly committed to our net debt to Adjusted EBITDA leverage ratio target of 2.0-2.5x.”
Bob Sallmann, EVP and CFO of McGraw Hill
