McGraw Hill completes refinancing with $400 million note offering

McGraw Hill, Inc. has completed a series of refinancing transactions that extend the maturities of certain outstanding indebtedness and enhance the company's financial flexibility. The moves include the issuance of new senior secured notes and the closing of a large term loan facility, funded in part by a recent prepayment of existing debt.

As part of the transaction, McGraw-Hill Education, Inc., the company's wholly-owned subsidiary and issuer, completed a private offering of $400 million in aggregate principal amount of 8.000% senior secured notes due 2033. Simultaneously, the issuer closed $930 million of senior secured term loans under its amended and restated senior secured cash flow credit agreement. The net proceeds from the new notes, combined with borrowings from the term loan facility, were used to redeem in full the issuer's outstanding 5.750% secured notes due 2028 and to refinance its existing term loan facility.

The refinancing also involved updates to the company's revolving credit facilities. The issuer refinanced its senior secured cash flow revolving credit facility to extend its maturity to October 2031, increase available commitments to $150 million, and reduce the applicable interest rate. Additionally, the company amended its senior secured ABL revolving credit agreement to extend its maturity to October 2031.

Bob Sallmann, Executive Vice President and Chief Financial Officer, stated that the company is continuing to reduce gross debt while proactively extending its maturity wall. Sallmann noted that these actions optimize market conditions and recent rating agency upgrades, marking another step in efforts to strengthen the capital structure over time. The transactions provide the ability to continue reducing gross debt while the company remains committed to a net debt to Adjusted EBITDA leverage ratio target of 2.0 to 2.5x.

Prior to these specific refinancing closings, McGraw Hill announced on October 1, 2026, that it had strengthened its balance sheet with a $50 million prepayment of principal under its then-outstanding term loan facility.

McGraw Hill is a global provider of education solutions for K-12, higher education, and professional learning. The company operates over 30 offices across North America, Asia, Australia, Europe, the Middle East, and South America, making its learning solutions available in more than 80 languages. Its fiscal year is the 52-week period ended March 31.

This announcement is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy the notes or any other security.