Houghton Mifflin borrowing $100 million of its asset-backed loan

By Rebecca Melvin

New York, March 27 – Houghton Mifflin Harcourt Publishers Inc. is borrowing $100 million of its asset-based credit facility and taking other steps as a way of mitigating risk during the uncertainty that has resulted from the Covid-19 pandemic, according to a press release.

Other actions include reducing the salaries of most executive and senior management and moving to a four-day work week for staff, freezing spending not directly tied to near-term billings, reducing inventory purchasing, closing warehouses and distribution centers temporarily, and deferring long-term capital projects not directly contributing to billings in 2020.

Given that Covid-19-related school closings mandated by states nationwide, the publisher believes its education business will be impacted and therefore is withdrawing 2020 financial guidance and a three-year outlook issued in February.

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