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Cengage Learning Closes $620 Million Notes Offering and $1.96 Billion Credit
- Client News
- June 7, 2016
Paul, Weiss client Cengage Learning, a leading global provider of content and digital learning solutions, completed its private offering of $620 million aggregate principal amount of 9.500% senior notes due 2024. Concurrently with the closing of the notes offering, Cengage, which is majority-owned by funds affiliated with Searchlight Capital Partners, KKR, Apax Partners and Centerbridge Partners, entered into $1,960 million of amended and restated senior secured credit facilities, consisting of a seven-year $1,710 million senior secured term loan facility and a five-year $250 million senior secured asset-based revolving credit facility. The proceeds from the notes offering and borrowings under the term loan facility were used to repay Cengage's existing credit facilities and to fund a $286 million cash dividend to Cengage's parent company, which will use the proceeds of the dividend to fund a stock repurchase program and, potentially, a future cash dividend to Cengage's stockholders.
The Paul, Weiss team advising Cengage included, among others, corporate partners Gregory Ezring and Brian Kim and counsel Gareth Clark and Caith Kushner; intellectual property partner Claudine Meredith-Goujon; employee benefits partner Lawrence Witdorchic; real estate partner Mitchell Berg; tax partner Scott Sontag; and litigation partner Aidan Synnott.