A combined $2.05 billion of leveraged loans have been launched to finance the buyout of educational software company Instructure Holdings Co. (NYSE: INST), kicking off an expected fall flurry of such funding deals.
The financing includes a $1.685 billion first-lien term loan B and a $365 million second-lien term loan, with respective tenors of seven and eight years, according to Bloomberg News, and Morgan Stanley (NYSE: MS) and KKR Capital Markets are respectively leading the tranches. A group led by Morgan Stanley had agreed to provide a roughly $2 billion debt package to finance the buyout, Bloomberg previously reported. KKR (NYSE: KKR) emerged as the winner to purchase Instructure, with July’s deal valuing the software firm at $4.8 billion including debt.