S&P: HM Rivergroup unaffected

Standard & Poor's said that HM Rivergroup plc's (B-/stable) agreement to sell its college publishing business for $750 million in cash to Cengage Learning Holdings II LP (B/stable) does not affect HM Rivergroup's rating or outlook.

The agency said it estimates that the sale will modestly lessen the company's operating diversity and marginally reduce its steep leverage.

HM Rivergroup's total debt and preferred stock to EBITDA, after subtracting amortization of capitalized prepublication costs, was about 10x for the 12 months ended Sept. 30, S&P said, noting that it remains concerned that challenges may arise in integrating the pending acquisition of the Harcourt educational publishing businesses.

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