Houghton Mifflin to obtain $725 million credit facility

By Sara Rosenberg

New York, Dec. 12 - Houghton Mifflin is expected to hit the market with a $725 million credit facility that will be used to help fund its purchase from Vivendi Universal by Thomas H. Lee Partners, Blackstone Group, Bain Capital and Apax Partners. CIBC, Goldman Sachs and Deutsche Bank are the lead banks on the deal.

The loan consists of a $325 million revolver with an interest rate of Libor plus 325 basis points and a $400 million term loan B with an interest rate of Libor plus 375 basis points, a syndicate source told Prospect News.

The sale is expected to go ahead on the basis of an enterprise value of €1.75 billion, representing 1.4 times Houghton Mifflin's 2001 revenue and 9.5 times its 2001 EBITDA after bookplate amortization.

Houghton Mifflin is a Boston publishing company.

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