Cambium Learning Group Announces Closing of $135 Million Credit Facility
December 11 2015 - 7:00AM
Cambium Learning® Group, Inc. (NASDAQ:ABCD) (the “Company”), a
leading educational solutions and services company committed to
helping all students reach their full potential, announced today
completion of a new $135.0 million credit facility by its wholly
owned subsidiary Cambium Learning, Inc. (the “Borrower”).
The Credit Agreement consists of a $70.0 million term loan A, a
$35.0 million term loan B, and a $30.0 million revolving credit
facility—secured by a lien on substantially all assets of the
Company, the Borrower and the Borrower’s subsidiaries—and matures
on December 10, 2020. At the closing of the Credit Agreement, the
Borrower was funded $70.0 million of the term Loan A, $35.0 million
of the term Loan B, and $0.2 million of the revolving credit
facility.
In connection with the Credit Agreement, the Company will redeem
in full its existing 9.75% Senior Secured Notes due 2017 (the
“Notes”) and, on December 10, 2015, the Borrower used the proceeds
from the Credit Agreement, in addition to cash on hand, to
irrevocably deposit with the trustee under the indenture with
respect to the Notes an amount sufficient to pay and discharge all
obligations under the Notes and the indenture. The redemption will
be effective February 15, 2016. As a result, the Indenture has been
satisfied and discharged in full and ceases to be of further
effect.
John Campbell, chief executive officer of Cambium Learning
Group, commented, “Cambium Learning’s strategic and financial
transformation has improved our business model and increased our
profitability and our creditworthiness. This new credit facility
provides us with a debt structure that better matches our seasonal
capital needs at a significantly lower cost of capital. We want to
thank our entire lending group for their commitment and support
during this important refinancing.”
Webster Bank, N.A., acted as Joint Lead Arranger, Administrative
Agent, L/C Issuer and a Lender; the Bank of Ireland acted as a
Joint Lead Arranger and Syndication Agent; and Capital One National
Association and Babson Capital Finance, LLC, acted as
Co-Documentation Agents.
About Cambium Learning Group, Inc.Cambium
Learning® Group is a leading educational solutions and services
company committed to helping all students reach their full
potential. Cambium Learning accomplishes this goal by
providing evidence-based solutions and expert professional services
to empower educators and raise the achievement levels of all
students. The company is composed of four business units: Learning
A-Z™ (www.learninga-z.com), ExploreLearning®
(www.explorelearning.com), Kurzweil Education™
(www.kurzweiledu.com), and Voyager Sopris Learning™
(www.voyagersopris.com). Together, these business units provide
breakthrough technology solutions for online learning and
professional support; best-in-class intervention and supplemental
instructional materials; gold-standard professional development and
school-improvement services; valid and reliable assessments; and
proven materials to support a positive and safe school environment.
Cambium Learning Group, Inc. (NASDAQ: ABCD), is based in Dallas,
Texas. For more information, please visit
www.cambiumlearning.com.
Media and Investor Contact: Barbara Benson
Cambium Learning Group, Inc.
investorrelations@cambiumlearning.com
LHA Jody Burfening/Carolyn Capaccio
212.838.3777 ccapaccio@lhai.com
Forward-Looking Statements
Some of the statements contained herein constitute
forward-looking statements. These statements relate to future
events, including the future financial performance of Cambium
Learning Group, Inc., and involve known and unknown risks,
uncertainties, and other factors that may cause the markets, actual
results, levels of activity, performance, or achievements of
Cambium Learning Group, Inc., to be materially different from any
actual future results, levels of activity, performance, or
achievements. These risks and other factors you should consider
include, but are not limited to, the ability to successfully
attract and retain a broad customer base for current and future
products, changes in customer demands or industry standards,
success of ongoing product development, maintaining acceptable
margins, the ability to control costs, K–12 enrollment and
demographic trends, the level of educational funding, the impact of
federal, state, and local regulatory requirements on the business
of the company, the loss of key personnel, the impact of
competition, the uncertainty of general economic conditions and
financial market performance, and those other risks and
uncertainties listed under the heading “RISK FACTORS” in Cambium
Learning Group, Inc.’s Form 10-K and other reports filed with the
Securities and Exchange Commission. In some cases, you can identify
forward-looking statements by terminology such as “may,” “should,”
“expects,” “plans,” “anticipates,” “believes,” “estimates,”
“predicts,” “potential,” “continue,” “projects,” “intends,”
“prospects,” or “priorities,” or the negative of such terms, or
other comparable terminology. These statements are only
predictions. Actual events or results may differ materially.
Cambium Learning Group, Inc., does not assume or undertake any
obligation to update the information contained in this press
release, and expressly disclaims any obligation to do so, whether
as a result of new information, future events, or otherwise.
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