Daily News: May 22, 2012

Shearman & Sterling Advises on $500MM DIP Loan for Houghton Mifflin


Shearman & Sterling advised Citigroup Global Markets as lead arranger and bookrunner in connection with a $500 million debtor-in-possession and exit financing for Houghton Mifflin Harcourt Publishers Inc. and certain of its affiliates.

The financing is in conjunction with a pre-arranged bankruptcy filing of the company and certain of its affiliates and consists of an asset-based revolving credit facility secured by a first lien on certain current assets and a term loan facility secured by a first lien on the other assets.

Houghton Mifflin Harcourt Publishers Inc. is a provider of educational content, technology and professional services to the pre-K, elementary and secondary school market in the United States.

The Shearman & Sterling team included partners Maura O’Sullivan (New York-Finance), Fredric Sosnick (New York-Bankruptcy & Reorganization), and Malcolm Montgomery (New York-Real Estate); counsel Benjamin Cheng (New York-Finance), Edmund M. Emrich (New York-Bankruptcy & Reorganization), Sharon Lippett (New York-Executive Compensation & Employee Benefits), and Ansgar Simon (New York-Tax); and associates Stacey Corr (New York-Bankruptcy & Reorganization), Michael Jokic (New York-Intellectual Property Transactions), Elizabeth Martialay (New York-Real Estate) and Judson Oswald (New York-Finance).

Previously on abfjournal.com:

Houghton Mifflin Harcourt Files for Bankruptcy, Monday, May 21, 2012