McGraw Hill refinances with $400m of 8 percent secured notes

McGraw-Hill Education completed a $400m private offering of 8 percent senior secured notes due 2033 on Friday as part of a broader refinancing.

The company used the offering, together with borrowings under an amended term-loan facility, to redeem 5.75 percent secured notes due 2028 and refinance an existing term loan.

The new notes pay interest twice a year beginning July 15, 2027. They are secured and guaranteed by McGraw Hill's intermediate parent and certain subsidiaries. Before October 15, 2029, the issuer can redeem them with a make-whole premium, use qualifying equity proceeds to redeem up to 40 percent, or redeem up to 10 percent a year at 103 percent of principal. The indenture restricts debt, dividends, liens, investments and asset sales.