New York, April 28, 2015 -- On April 24, 2015, Houghton Mifflin Harcourt Publishers Inc. ("HMH"), announced the acquisition of Scholastic Inc.'s Educational Technology and Services division ("EdTech") for $575 million. EdTech provides intervention curriculum technology products and services to schools and districts throughout the United States. The acquisition and refinancing of the existing term loan ($180 million outstanding) will be funded with proceeds from a new $500 million term loan and $275 million of balance sheet cash. The company also announced a $100 million increase in its share buyback program. Moody's assigned B1 to HMH's proposed Senior Secured Term Loan B and affirmed the company's B1 Corporate Family Rating and B1-PD Probability of Default rating. Moody's also affirmed the SGL-1 liquidity rating and the outlook is stable.
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