March 22 Cengage Learning Acquisitions Inc has hired restructuring advisers and drawn down a revolving credit facility as the educational publisher prepares for a large loan maturity next year.
Cengage, which is controlled by British investment firm Apax Partners, said in a statement it had hired Alvarez & Marsal as its restructuring adviser, Lazard as its financial adviser and Kirkland & Ellis as its legal adviser.
In addition, the company said it had borrowed $430 million, almost all of its remaining credit facility to ensure its businesses have the cash they need.
Stamford, Connecticut-based Cengage has a $1.5 billion term loan that matures next year and a total of $5.3 billion of debt as of Dec. 31.
The company has warned that if it is unable to refinance or extend its 2014 loan it may not have sufficient liquidity to finance its operations.
Formerly known as Thomson Learning, Cengage was acquired by Apax and Omers Capital Partners in 2007 in a $7.75 leveraged buyout from Thomson Corp, which later acquired Reuters Plc.
In the six months to Dec. 31, Cengage's revenues fell about 18 percent to $945 million.