...+ Spring Education Group Inc., which operates for-profit schools at the pre-kindergarten through twelfth grade level, is borrowing an incremental $106 million senior secured first-lien term loan to fund its acquisition of five schools. + We expect that pro forma for the transaction, adjusted debt leverage will increase to 8.9x from 8.2x (before one-time transactions charges) as of Dec. 31, 2018. In our view, the proposed acquisition will delay the company's deleveraging. + On Feb. 27, 2019, we affirmed our 'B-' issuer credit rating on the company, and affirmed our ratings on all its existing debt facilities. + We also assigned our 'B-' issue-level rating and '3' recovery rating to the proposed senior secured add-on term loan. + We revised the ratings outlook to negative from stable to reflect our view that the company's debt leverage will remain high at close to 9x, and that free operating cash flow will remain low until the end of fiscal year ended June 30,2020, after which Spring could...
