Houghton Mifflin secures $650m investment
Houghton Mifflin Harcourt Publishing Co. said today that its institutional investors have committed to invest $650 million of new equity capital in the education materials publisher.
The company said it also agreed to a recapitalization that significantly reduces its debt and provides greater liquidity for growth.
Due to the investment, combined with the company's current senior lenders' conversion of approximately 60 percent of their secured debt to equity, Houghton said it will have the "strongest capital structure in its history."
As part of Houghton's financial restructuring, its senior lenders will convert more than $2 billion of secured debt into equity, the company said.
The transaction is expected to be completed around March 9.
Last month, the chief executive of Houghton Mifflin Harcourt's parent company, confirmed that it was in the midst of a major restructuring to reduce its estimated $7 billion in debt. To read a Globe story about that, please click here.