McGraw Hill Launches $500M Notes Offering and $980M Credit Refinancing
MH sits 53% above its 52-week low of $8.945.
Summary
McGraw Hill is refinancing its debt stack: a $500M senior secured notes offering due 2033, a new $830M term loan B, and a $150M revolving credit facility. Proceeds will redeem the 5.750% notes due 2028 and refinance the existing term loan. The company expects to voluntarily prepay $50 million under the existing term loan by September 30, 2026, and to redeem the 5.750% notes due 2028 on October 9, 2026, conditioned on closing the refinancing. This extends maturities to 2031-2033 and likely reduces interest costs, but adds leverage. The company recently reported strong Q1 FY2027 earnings and has been active in AI acquisitions, so this is a balance-sheet optimization move rather than distress. Watch for pricing details and any impact on the $50M buyback program.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — McGraw Hill expects to voluntarily prepay $50 million under the existing term loan by September 30, 2026, and to redeem the 5.750% notes due 2028 on October 9, 2026, conditioned on closing the refinancing.
At the time of this announcement, MH was trading at $13.69 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 neutral market sentiment and an importance score of 7 out of 10. Source: BusinessWire.