McGraw Hill Closes Refinancing: $400M Notes, $930M Term Loan, Extended Maturities
MH sits 49% above its 52-week low of $8.945.
Summary
McGraw Hill completed its debt refinancing, closing a $400M senior secured notes offering due 2033 and a $930M term loan facility. The terms differ from the September 25 announcement: notes were downsized from $500M to $400M, while the term loan increased from $830M to $930M. Proceeds redeemed the 5.750% notes due 2028 and refinanced the existing term loan. The revolving credit facility was extended to October 2031 with commitments raised to $150M and a lower interest rate. The company also made a $50M prepayment on its prior term loan. This extends the maturity wall and reduces gross debt, supporting the stated leverage target of 2.0-2.5x net debt to Adjusted EBITDA.
Updates
· SEC 8-K — The 8-K details the refinancing terms: $400M 8.000% notes due 2033, $930M term loan due 2033, $150M revolver due 2031, and redemption of 5.750% notes due 2028.
At the time of this announcement, MH was trading at $13.37 on NYSE in the Trade & Services sector, with a market capitalization of approximately $2.6B. The 52-week trading range was $8.95 to $18.00. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: BusinessWire.