Key Highlights
- McGraw Hill closed down 7.01% at $12.73 as it announced plans for $500 million of senior secured notes due 2033.
- The company also plans to arrange an $830 million term Loan alongside credit-facility amendments.
- Proceeds are intended to redeem the outstanding 5.750% Secured Notes due 2028 and refinance the Existing Term Loan.
McGraw Hill (NYSE:MH) closed down 7.01% at $12.73 after announcing plans to offer $500 million of senior secured notes due 2033 and arrange an $830 million term loan, alongside credit-facility amendments. For investors, the proceeds and new borrowings are intended to redeem the outstanding 5.750% Secured Notes due 2028 and refinance the Existing Term Loan.
$500M Notes Paired With New Credit Facilities
McGraw-Hill Education, McGraw Hill's wholly-owned subsidiary, would issue the notes in a private offering. Guarantees would come from Mav Intermediate Holding II Corporation and certain direct and indirect subsidiaries of the issuer. The proposed amendments would lift available commitments on the revolving credit Facility to $150 million and extend its Maturity to 2031. A separate senior secured ABL revolving credit agreement would also receive a maturity extension to 2031.
October Redemption Depends on Financing Close
The company expects the 2022 Senior Secured Notes redemption to occur on October 9, 2026. That repayment is conditional on completion of the notes offering and receipt of sufficient refinancing proceeds. The proposed offering is subject to market conditions.
FAQs
Q: What refinancing is McGraw Hill planning?
A: McGraw Hill plans to raise $500 million through senior secured notes due 2033, together with borrowings under a new term loan. The refinancing would redeem the 2022 Senior Secured Notes and refinance the Existing Term Loan.
Q: When does McGraw Hill expect to redeem its existing notes?
A: McGraw Hill expects to redeem the 2022 Senior Secured Notes on October 9, 2026, subject to the offering closing and sufficient refinancing proceeds.
Q: How much will McGraw Hill prepay under its Existing Term Loan?
A: The company expects to voluntarily prepay $50 million under the Existing Term Loan on or prior to September 30, 2026.
Download Free Report – Explore 3 Stock Ideas & Industry Insights
Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.
All investments involve risk—consider independent advice before making any investment decisions.
View 3 Research Reports
Disclaimer:
Kalkine Equities LLC, with Delaware File Number 4697384, Foreign Qualification Registration in California File Number 202109211078, and Texas File Number 805521396, is authorized to provide general advice only. The information on https://kalkine.com/ does not take into account any of your investment objectives, financial situation or needs. You should consider the appropriateness of advice taking into account your own objectives, financial situation and needs and seek independent financial advice before making any financial decisions. The link to our Terms and Conditions and Privacy Policy has been provided for your reference. On the date of publishing the reports (mentioned on the website), employees and/or associates of Kalkine do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations later.