Substantially Strengthens Balance Sheet and Enhances Financial Flexibility
New Term Loan Carries a Meaningfully Lower Interest Rate and Extends Maturity to 2028
Skillsoft Corp. a global leader in corporate digital learning, announced it has successfully completed its previously announced debt refinancing. The Company has closed a new $480 million senior secured term loan B facility. This facility, along with cash on hand, will be used to r******** and repay the Company’s existing term loan facilities, thereby reducing long-term debt by approximately $130 million.
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The new term loan B facility reduces Skillsoft’s interest rate by 300 basis points and extends its maturity from 2025 to 2028. Together, the refinancing and debt paydown will decrease the Company’s annual interest payments by approximately $25 million.
Jeffrey R. Tarr, Skillsoft’s Chief Executive Officer, said, “We are pleased to complete our refinancing, which strengthens our balance sheet, increases our free cash flow and provides substantial financial flexibility to execute on our organic and acquisitive growth plans. We are excited to move forward as an even stronger company as we continue helping our customers future-proof their workforce and giving learners the tools they need to realize their full potential.”
As a result of the refinancing and debt paydown, the Company has $480 million of long-term debt outstanding.
Additional information is available in a presentation on the Investor Relations section of the Company’s website and included in a Form 8-K filed today with the U.S. Securities and Exchange Commission.
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