What happened
McGraw Hill, Inc. (NYSE: MH) said on October 9, 2026, that it completed refinancing transactions and strengthened its balance sheet. The company completed a private offering of $400 million of 8.000% senior secured notes due 2033 and closed $930 million of senior secured term loans.
The company used the proceeds and borrowings to redeem its 5.750% Secured Notes due 2028 in full and refinance its existing term loan facility. It also said the cash flow revolving credit facility now has $150 million of available commitments and matures on October 9, 2031. The amended ABL revolving credit agreement also matures on October 9, 2031.
Key numbers
| Metric | Latest | Change | Source |
|---|---|---|---|
| Senior secured notes due 2033 | $400 million | SEC 8-K | |
| Senior secured term loan facility | $930 million | SEC 8-K | |
| Cash flow revolver commitments | $150 million | from $111 million, +35.1% | Calculated from SEC 8-K |
| Principal prepaid | $50 million | SEC 8-K | |
| Senior secured notes coupon | 8.000% | SEC 8-K |
Why it matters
OptimistFi's case is that McGraw Hill's value depends more on cash flow repair than fast growth, and this filing shows more of that repair. The refinancing pushes maturities out to 2031 and 2033, which gives the company more room to manage debt over time. The cash flow revolver's available commitments rose to $150 million from $111 million, a 35.1% increase, and the company also said it prepaid $50 million of principal under its then-outstanding term loan facility.
The filing says the notes pay 8.000% interest, beginning July 15, 2027, and the term loan facility is repayable in quarterly installments of $2.33 million. The company also said the term loans will bear interest at SOFR plus 2.75% or a base rate plus 1.75%. The balance-sheet repair still carries ongoing financing costs. McGraw Hill said it remains committed to a net debt to Adjusted EBITDA leverage ratio target of 2.0-2.5x.
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What's next
The first scheduled cash flow item is the semiannual interest payment on July 15, 2027, with payments due every January 15 and July 15 after that. The term loan facility matures on October 7, 2033, and both revolving credit facilities mature on October 9, 2031.
On-time payments through those dates would support the refinancing story. Any strain against the interest schedule or maturity dates would weaken it.
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Sources
- McGraw Hill press release — Exhibit 99.1 announcing completion of refinancing transactions.
- SEC 8-K — Current report filed October 9, 2026.
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Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.
