11:47 AM EDT, 09/30/2024 (MT Newswires) -- KinderCare Learning (KLC) on Monday set the preliminary terms of its prospective initial public offering, with the early-learning centers chain planning to sell 24 million shares priced at $23 to $27 each.

The company also is providing underwriters with a 30-day option to buy up to 3.6 million additional shares to cover potential overallotments.

With shares priced at the $25 midpoint of the expected range, the company estimates the IPO will generate around $555.7 million in net proceeds prior to the overallotment option being exercised.

KinderCare plans to use $548.4 million of the net proceeds to repay borrowings under its first lien term loan facility maturing in June 2030, according to the preliminary prospectus. Overall, the company owed $1.58 billion under the term loan facility as of June 29.