McGraw Hill proposes $500 million bond issue in broader refinancing

McGraw Hill ($MH) launched a proposed $500 million offering of senior secured notes due in 2033 as part of a wider debt refinancing. The package also contemplates an $830 million first-lien term loan due in 2033, a $150 million revolving facility due in 2031 and an extension of its asset-based facility to 2031.

The company intends to refinance its existing term loan and retire its 5.75% notes due in 2028, extending important debt maturities. The proposed bond’s coupon and final terms had not been established in the launch announcement. These amounts describe the planned financing structure, not entirely incremental cash available for expansion, because a substantial purpose is repayment or replacement of existing borrowings.

Sources:

• McGraw Hill — proposed senior secured notes, Business Wire release