Haights Cross Communications completes $270 million refinancing.

The privately held Haights Cross Communications continues major house renovation. In April, it divested itself of its last strictly newsletter operation, Andrews Publishing, by selling it to West, a business of the Thomson Corporation.

At the time Haights Cross chairman and CEO Peter Quandt said the divestiture of Andrews would support the company's "strategy to focus exclusively on educational and library publishing" (NL/NL 4/15/03).

Now HCC has completed a $270 million refinancing. The Haights Cross Operating Company (HCOC), a wholly owned HCC subsidiary, priced the $270 million capital structure consisting of a $30 million Senior Secured Revolving Credit Facility, a $100 million Second Priority Senior Secured Floating Rate Term Loan, and $140 million of Senior Unsecured Notes.

The proceeds of the financing will be used to repay existing bank debt and redeem existing senior subordinated notes of HCOC, as well as to fund general corporate purposes.

The offering of Senior Unsecured Notes was led by Bear, Stearns & Co. Inc. with co-managers BNY Capital Markets Inc. and Jeffries & Company Inc., and Lane, Berry & Co. as HCOC's agent.

Bear Stearns & Co. also served as lead arranger for the Senior Secured Revolving Credit Facility and Second Priority Senior Secured Floating Rate Term Loan.

Goodwin Procter LLP acted as company legal counsel advising on the transactions, and Lane, Berry & Co. served as financial advisor to the company.

Peter Quandt said, "The success of this important business transaction in a difficult financial environment speaks to the strengths and long-term prospects of the core businesses. Haights Cross will continue to invest in aggressive product development and sales in order to extend the leadership positions we have built in our target markets."

10 New King St., White Plains, NY 10604, 914-289-9400, fax [phone], www.haightscross.com