Houghton Mifflin launches $330 million term B at Libor plus 600 bps

By Sara Rosenberg

New York, Nov. 1 – Houghton Mifflin Harcourt Publishers Inc. launched on its lender call on Friday a $330 million five-year senior secured term loan B (B3/B/BB-) with price talk of Libor plus 600 basis points with a 0% Libor floor and an original issue discount of 97 to 98, according to a market source.

The term loan B has 101 soft call protection for one year and amortization of 5% per annum, the source said.

Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., BofA Securities, Inc. and Wells Fargo Securities LLC are the joint lead arrangers on the deal. Citizens Bank is a co-manager. Citigroup is the administrative agent.

Commitments are due at 5 p.m. ET on Nov. 13, the source added.

Proceeds will be used to help refinance an existing term loan B.

As of Sept. 30, the company had about $766 million outstanding under its term loan B due May 29, 2021 that is priced at Libor plus 300 bps with a 1% Libor floor.

Closing is expected during the week of Nov. 18.

Houghton Mifflin is a Boston-based provider of K-12 core curriculum, supplemental and intervention solutions and professional learning services.

© 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.