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.