Houghton Mifflin amends loan to downsize revolver, provide for term loans

By Sara Rosenberg

New York, Nov. 28 - Houghton Mifflin Co. amended its credit facility, reducing the revolver size to $250 million from $325 million and providing for additional term loans of up to $250 million, according to an 8-K filed with the Securities and Exchange Commission on Monday.

In addition, the amendment revised the required total leverage and senior leverage ratios, increased the amount of maximum consolidated capital expenditures to an annual limit of $190 million from $155 million and increased the "Permitted Business Acquisition Amount" to $150 million from $35 million for any single acquisition and to $300 million from $200 million over the life of the credit facility.

Furthermore, the amendment allows up to $100 million to be used to repurchase debt and deleted certain provisions relating to mandatory prepayments and commitment reductions.

The amendment was completed Nov. 22.

CIBC is the administrative agent on the deal.

Houghton Mifflin is a Boston-based publishing company.

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