Daily News: April 2, 2014

Cengage Emerges From Chapter 11, Citibank Agents ABL Exit Facility

Cengage Learning announced that it has emerged from Chapter 11, having completed its financial restructuring. The company said it has eliminated approximately $4 billion in funded debt and has excellent liquidity to support its strategic plans, having secured $1.75 billion in exit financing under a senior secured term loan facility.

According to bankruptcy court documents, Cengage entered into an ABL credit agreement with a lender group led by Citbank, as administrative agent and collateral agent. Joint lead arrangers included Credit Suisse Securities, Citigroup Global Markets, Deutsche Bank Securities, Morgan Stanley Senior Funding and KKR Capital Markets.

“We have used the restructuring process to significantly reduce debt and associated costs, and substantially improve our capital structure while continuing to meet the educational and research needs of our customers and end-users,” said Michael Hansen, chief executive officer of Cengage Learning. “I am pleased to say that today we are well positioned in the global marketplace to deliver the best content, digital solutions and personalized services in education and research.”

Cengage Learning’s legal advisor for the Chapter 11 proceedings was Kirkland & Ellis, its restructuring advisor was Alvarez & Marsal, and its financial advisor was Lazard.

Stamford, CT-based Cengage Learning is a leading educational content, technology, and services company for the higher education and K-12, professional and library markets worldwide.

Previously on abfjournal: Bloomberg: Cengage Reorganization Settlement Cuts $4B in Debt, February 5, 2014