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Houghton Mifflin Harcourt could refi 9% senior notes in February 2022
By Devika Patel
Knoxville, Tenn., Sept. 23 – Houghton Mifflin Harcourt Co. may refinance some notes that become callable in February 2022 in order to perhaps get a better coupon and keep the balance sheet strong.
The balance sheet is management’s top priority.
“We have three financial priorities,” chief financial officer Joe Abbott said at the Goldman Sachs 30th Annual Communacopia Conference on Thursday.
“The first of those is to maintain our strong balance sheet.
“The second one is invest in organic growth and inorganic growth and the third priority for us is to continue to invest in greater efficiency over time,” he said.
In order to keep the balance sheet strong, the company is considering refinancing its 9% notes that are callable in February 2022, perhaps even snagging a better interest rate, and the company is monitoring the market.
“We do think there’s this opportunity to refinance those 9% senior secured notes that become callable in February of 2022,” Abbott said.
“We’re monitoring the market conditions.
“We do believe there’s an opportunity to improve upon that cost of debt, but the timing and the like is going to be largely dependent on market conditions,” he said.
The company has been strengthening its balance sheet over the past two years.
“Just in the last two years, we’ve dramatically transformed our business,” Abbott said.
“We’ve strengthened our balance sheet.
“We’ve significantly lowered our cost structure,” he said.
Houghton Mifflin is a Boston-based provider of K-12 core curriculum, supplemental and intervention solutions and professional learning services.
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