Talk emerges on Houghton Mifflin $650 million notes, pricing Friday

By Paul A. Harris

St. Louis, Jan. 22 - The market heard official price talk Thursday on Houghton Mifflin Co.'s two-part $650 million high-yield offering, which is expected to price Friday, according to syndicate sources.

The $250 million of eight-year-non-call-four senior notes (B2/B) are talked at 8¼%-8½%.

The $400 million of 10-year-non-call-five senior subordinated notes (B3/B) are talked at a yield in the 175 basis points area behind the senior notes.

Goldman Sachs & Co., CIBC World Markets and Deutsche Bank Securities, Inc. are joint bookrunners on the Rule 144A deal. Fleet Securities is co-manager.

Proceeds will be used to help fund the purchase of Houghton Mifflin from Vivendi Universal by Thomas H. Lee Partners, Blackstone Group, Bain Capital and Apax Partners.

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