Reed Does Raise Money, This Time For Itself
This story was written by Rafat Ali.
Reed Elsevier (NYSE: RUK), which recently went thorough a failed process of trying to sell off its B2B media division Reed Business Information, has put in place a $2 billion "forward start" credit facility from syndicate of 19 banks, starting May 2010 and maturing May 2012. A forward start is an agreement between a borrower and its lenders that allows the borrower the option to draw down on a new loan facility when an existing loan expires. Its existing $3 billion revolving credit facility, which matures May 2010, has been reduced in size to $2.5 billion to reflect Reed Elsevier's lower short term borrowing needs, reported DJN. Analysts had raised doubts about the company's capability to pay off its debts after it failed to offload RBI last year. This should help allay some fears, at least for now. No indication yet that RBI or any of its constituent brands (including Variety) may come back on the market anytime soon. Some more details in release.
By Rafat Ali