Strong demand for Wolters Kluwer

The €737.5m debt package supporting Bridgepoint‘s buyout of the Wolters Kluwer‘s educational publications business (WKE) has been launched with ING and SG as bookrunners and MLAs. Strong demand from both institutional and bank investors has led to a revision of the capital structure, with €20m of mezzanine flexed into the term loan B.

Banks are invited in on a take and hold basis on a €30m ticket for 75bp and on a €20m ticket for 50bp.

Senior debt totals €580m and is split between an eight-year €450 term loan B paying 225bp and a seven-year €150m revolver paying 200bp. In addition, there is a 9-1/2 year €50m second-lien facility paying 375bp and a 10-year €87.5m mezzanine facility paying 7%, of which 2% is cash and 5% PIK. The mezzanine has already been placed with institutional investors.

Dresdner Kleinwort has joined the transaction with a commitment on the pro rata facilities. Total leverage is 7.5x and senior leverage 5.7x.

WKE is a European educational publisher with market leading positions in primary education, secondary education and vocational education. Its core geographies are the Netherlands, Sweden, the UK and Germany.