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.