The publishing and events group is targeting debts of below £1bn but insisted there was no danger of banking covenants being breached. The final dividend, down at 3.9p from 11.3p, will be paid on 3 July.Telegraph
Finance
Houghton Mifflin Harcourt Sale Scratched; Debt Renegotiation Finalized
As the Wall Street Journal first reported yesterday, Education Media and Publishing ceo Barry O’Callaghan says “we concluded that the offers we’ve received were less than what the business was worth in terms of long-term value and long-term profitability” so they are calling off a sale of Houghton Mifflin Harcourt. O’Callaghan says there were three bidders for the trade publisher, with estimated annual sales of $150 million to $200 million.WSJ Separately, Houghton Mifflin ceo Tony Lucki tells the Boston Globe the unit comprises about 5 percent of Houghton’s profits, and less than 10 percent of sales. He insists “the offers). […]
Borders to Ask for Reverse Stock Split
At their annual meeting on May 21, Borders will seek shareholder approval for a reverse stock split to help bring the company into compliance with New York Stock Exchange listing rules. The split still might not happen, though, since the company also needs a higher market capitalization to meet the Exchange’s rules.Release
HMH Trying to Renegotiate Debt Covenants After All
Having heatedly taken issue with recent ratings downgrades by both Moody’s and Standard & Poor’s, Houghton Mifflin Harcourt parent company Education Media & Publishing is talking to its primary lenders–who hold $4.3 billion in debt–about renegotiating the terms to loosen the multiples in their covenants. As the FT reports, the notes currently require that EMP’s debt be no more than 8.75 times ebidta by March 31. The company seeks to raise that multiple to 9.95 times earnings, and wants to raise the March 2010 target from 6.5 times ebitda to a 7.45 multiple. Lenders are being offered a small fee […]
Layoffs At National Geographic
National Geographic eliminated nine jobs in their book division last week “as part of the organization’s response to the evolving marketplace.” Among those leaving are publisher Kevin Mulroy, director of photography books Leah Bendavid-Val, and director of travel publishing Symmie Newhouse. As part of the reorganization, Barbara Brownell Grogan was named vp and editor-in-chief for adult books. And Melina Bellows has been promoted to evp of Children’s Publishing. VP of children’s books Nancy Feresten will report to Bellows, who in turn reports to National Geographic Publishing president John Griffin. VP for communications MJ Jacobsen tells us “the move was a […]
Readers Digest to End Two Weekly Reader Properties
In Reader’s Digest’s Weekly Reader Publishing Group, the company is exiting two businesses that serve the library market. Their World Almanac Education Library Services “will close by the end of this fiscal year.” Gareth Stevens Publishing is being offered for sale through Broadwater & Associates. The two businesses formerly were part of WRC Media, a company that was integrated into Reader’s Digest in 2007 when it was acquired by investors led by Ripplewood Holdings.