Following the news from Daily Finance on Monday (covered here) that the restructure was a done deal, Houghton Mifflin Harcourt released a statement confirming the changes to the company’s financial structure claiming:
As a result of the $650-million equity investment combined with the current senior lenders’ conversion of approximately 60% of their secured debt to equity, HMH will have the strongest capital structure in its history and the financial flexibility to continue to build the world’s leading education company. This development, coupled with previous changes in the capital structure, will reduce annual interest by more than 75%.
Barry O’Callaghan was quoted as saying:
With this important development, HMH will have successfully completed a comprehensive balance sheet deleveraging that places it on the strongest financial footing in the Company’s history and positions it for continued success. Thanks to the overwhelming support from our investor base, which sees unparalleled value in our underlying business and our future prospects, we now have greater financial flexibility and freedom with a vastly improved capital structure.
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