McGraw Hill, Inc. announced on October 9, 2026, the completion of a series of refinancing transactions designed to extend the maturity of its indebtedness and strengthen its financial flexibility. The transactions, executed by its wholly-owned subsidiary, McGraw-Hill Education, Inc., included a private offering of debt securities and amendments to existing credit agreements.
The subsidiary completed a private offering of $400 million in aggregate principal amount of 8.000% senior secured notes due 2033. These notes are guaranteed by the subsidiary's parent, Mav Intermediate Holding II Corporation, and certain other subsidiaries. The notes bear interest at 8.000% per annum, payable semi-annually on January 15 and July 15, beginning July 15, 2027.
The proceeds from this offering, combined with borrowings under a new term loan facility, were used to redeem in full the subsidiary’s outstanding 5.750% Secured Notes due 2028. Additionally, the proceeds were used to refinance an existing term loan facility.
In conjunction with the offering, the subsidiary entered into an amendment and restatement agreement for its senior secured cash flow credit agreement. This agreement established a $150 million senior secured revolving credit facility, which matures on October 9, 2031. It also established a $930 million senior secured term loan facility, which matures on October 7, 2033. The term loans are repayable in quarterly installments of $2.325 million. Interest for these facilities is set at a floating rate, either SOFR plus 2.75% or a base rate plus 1.75%, at the borrower's option.
The subsidiary also amended its senior secured ABL revolving credit agreement. This amendment extends the maturity date of the revolving credit facility to October 9, 2031. The company previously announced a $50 million prepayment of principal under its term loan facility on September 30, 2026.
