McGraw-Hill Education, Inc. announced on December 15, 2020 that it has entered into a transaction support agreement to address its near-term debt maturities. The contemplated transaction will extend all material debt maturities through late 2024. The Company, holders of approximately 63% of the outstanding principal amount of the term loans under the Company’s existing first lien credit agreement, holders of approximately 76% of the aggregate principal amount of the Company’s 7.875% Senior Notes due 2024 and holders of 100% of the outstanding principal amount of the loans under MHGE Parent, LLC’s term loan agreement entered into a transaction support agreement to define their commitments to commence a comprehensive set of refinancing transactions, according to a press release.

 “Following a strong performance in the critically important back-to-school period, we are pleased to announce a comprehensive refinancing that addresses all near-term debt maturities”, says Garet Guthrie, Executive Vice President and Chief Financial Officer.

Consequently, on December 15, 2020, S&P Global Ratings raised its issuer credit rating on the Company to B- from CCC+ because the proposed transaction gives the Company additional time to grow into its capital structure.

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