Cengage Learning (Bonds)

Credit, Consumer


Highlights

Cengage Learning is a publisher of textbooks and other products for the education industry. The company was bought by Apax in 2007 and now has ~$5.5 billion in debt outstanding. The company has $4.2 billion in 1st lien debt trading in the low 70’s ($1 billion of which needs to be retired by April 2014, and based on the presenter’s estimate Apax has purchased $500 million of this), $700 million in 2nd lien debt, and a remaining $500 million in other issues. He believes the company has been managed relatively poorly to-date, but has a solid opportunity to capitalize on the transition to digital content (which is still in the early innings). 

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Idea Discussion

Commentor 1 - 2 weeks ago

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