Trlpc springer raises extra 700 mln euro loan for macmillan merger

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Feb 27 German publisher Springer Science+Business Media is raising an extra 700 million euros ($786.31 million) of leveraged loans to back its merger with nature publisher Macmillan Science and Education, banking sources said on Friday. Germany's Holtzbrinck, which owns Macmillan Science and Education and publishes Nature and Scientific American magazines, will combine most of its business with BC Partners' Springer unit, which publishes scientific, technical and medical books and journals. The merger is being backed with a new incremental loan denominated in euros and dollars that will be added to Springer's existing loans, the sources said.

The new loan includes a 600 million euro-equivalent term loan and a 100 million euro revolving credit facility. Pricing on the term loan is expected to be in line with Springer's existing term loans which pay 375 basis points (bp), with a 1 percent Libor/Euribor floor, sources said.

Libor floors guarantee minimum returns for investors. Goldman Sachs is leading the euro tranche and JP Morgan is leading the dollar tranche. The financing will be launched to investors at a bank meeting on March 3 in London and commitments are due on March 17.

The arranging banks will also ask Springer's existing loan investors to approve a waiver allowing change of control to avoid triggering a debt repayment. Holtzbrinck will own 53 percent of the joint company and BC Partners will own 47 percent. The enlarged group will have 1.5 billion euros in annual sales and 13,000 employees. BC Partners bought Springer Science in 2013 for 3.3 billion euros, backed with 2.6 billion euros of loans, some of which were repriced on more attractive terms a year later, according to Thomson Reuters LPC data. ($1 = 0.8902 euros)