BOSTON, June 15, 2021 /PRNewswire/ -- Learning
technology company Houghton Mifflin
Harcourt ("HMH" or the "Company") (Nasdaq: HMHC) announced
today that it has paid down approximately $337 million in principal of its outstanding debt
with the net proceeds of its recent divestiture of HMH Books &
Media, its consumer publishing business.
Following the completion of the required Asset Sale Offer and
Collateral Asset Sale offer on June
8, HMH has reduced the outstanding principal amount of its
Senior Secured Notes due 2025 (the "Notes") to approximately
$303 million. Additionally, via
a combination of mandatory and voluntary prepayments, the Company
has reduced the outstanding principal amount of its Senior Secured
Term Loan Facility due 2024 (the "Term Loan Facility") to
approximately $22 million. All
prepayments were completed at a price of 100% of the principal
amount.
"HMH has made excellent progress in transforming its capital
structure to align it with our Digital First, Connected strategy.
The added strategic flexibility derived from our debt paydown
supports our ability to supplement strong organic growth with
small, tuck-in acquisitions to fuel inorganic growth," said
Joe Abbott, HMH's Chief Financial
Officer. "With a strong balance sheet, disciplined capital
allocation approach, and continued focus on investing for
efficiency, we are confident that HMH is well-positioned for growth
and substantial free cash flow generation in 2021 and beyond."
About Houghton Mifflin Harcourt
Houghton Mifflin Harcourt
(Nasdaq: HMHC) is a learning technology company committed to
delivering connected solutions that engage learners, empower
educators and improve student outcomes. As a leading provider of
K–12 core curriculum, supplemental and intervention solutions and
professional learning services, HMH partners with educators and
school districts to uncover solutions that unlock students'
potential and extend teachers' capabilities. HMH serves more than
50 million students and 3 million educators in 150 countries.
CONTACT
Investor Relations
investor.relations@hmhco.com
Media Relations
Bianca Olson
SVP, Corporate Affairs
617-351-3841
Bianca.Olson@hmhco.com
Forward-Looking Statements
The statements contained herein include forward-looking
statements, which involve risks and uncertainties. Forward-looking
statements include all statements that are not statements of
historical facts, including statements regarding our Digital First,
Connected growth strategy and being well-positioned for growth in
2021 and meaningful free cash flow generation. We derive many of
our forward-looking statements from our operating budgets and
forecasts, which are based upon many detailed assumptions. We
caution that it is very difficult to predict the impact of known
factors, and, of course, it is impossible for us to anticipate all
factors that could affect our actual results. All forward-looking
statements are based upon information available to us on the date
of this press release.
We caution you that forward-looking statements are not
guarantees of future performance and that actual results may differ
materially from those made in or suggested by the forward-looking
statements contained herein. Important factors that could cause
actual results to vary from expectations include, but are not
limited to: the duration and severity of the COVID-19 pandemic and
its impact on the federal, state and local economies and on K-12
schools; any disruption resulting from the completed sale of our
HMH Books & Media business that adversely affects our
businesses and business relationships, including with employees and
suppliers; the rate and state of technological change; state
requirements related to digital instructional materials; our
ability to execute on our Digital First, Connected growth strategy;
increases in our operating costs; our ability to retain and hire
key personnel; and other factors discussed in the "Risk Factors"
section of our Annual Report on Form 10-K for the fiscal year ended
December 31, 2020 and our Quarterly
Report on Form 10-Q for the quarter ended March 31, 2021. These forward-looking statements
speak only as of the date of this press release, and we do not
assume any obligation to update or revise any forward-looking
statement made herein.
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SOURCE Houghton Mifflin Harcourt