| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers H > Headlines for Houghton Mifflin Harcourt Co. > News item |
Houghton Mifflin Harcourt restates $250 million asset-based revolver
By Angela McDaniels
Tacoma, Wash., July 23 – Houghton Mifflin Harcourt Co. entered into a $250 million amended and restated senior secured asset-based revolving credit facility due July 22, 2020, according to an 8-K filing with the Securities and Exchange Commission.
The new revolver amends and restates the borrowers’ existing $250 million super-priority senior secured debtor-in-possession and exit revolving credit agreement dated May 22, 2012.
The new revolver is guaranteed by the company and its for-profit domestic subsidiaries. Wholly owned subsidiaries Houghton Mifflin Harcourt Publishers Inc., HMH Publishers LLC and Houghton Mifflin Harcourt Publishing Co. are the borrowers.
The interest rate is Libor plus 175 basis points. The margin may increase to up to 225 bps based on average daily availability.
The new revolver includes a $50 million letter-of-credit subfacility, a $20 million swingline subfacility and a $100 million accordion feature.
Borrowings under the revolver may be used for working capital and for general corporate purposes. At closing, the new revolver was undrawn.
The new revolver requires the borrowers to maintain a minimum fixed charge coverage ratio of 1 to 1 on a trailing four-quarter basis only during certain periods beginning when excess availability is less than certain limits.
Citigroup Global Markets Inc. and Wells Fargo Bank, NA are the lead arrangers and lead bookrunners. Citibank, NA is the administrative agent and collateral agent. Wells Fargo Bank, NA is the syndication agent.
Houghton Mifflin Harcourt is a Boston-based educational publisher in the K-12 market.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.