Graham Holdings Company (NYSE: GHC) has announced a proposed $500 million private offering of senior unsecured notes due 2033. Additionally, the company intends to amend and restate its revolving credit facility, increasing the total commitments by lenders under such facility to $400 million. The net proceeds from the offering of notes and the borrowings under the amended revolving credit facility will be used for several purposes, including redeeming all of the outstanding 5.750% notes due 2026, refinancing outstanding revolving loans, repaying all amounts outstanding under the company’s existing $150 million term loan facility, and paying related fees and expenses.
The notes and related guarantees will be offered only to qualified institutional buyers in the United States pursuant to Rule 144A of the Securities Act and outside the United States to non-U.S. persons in reliance on Regulation S under the Securities Act.
The proposed offering indicates a significant capital raise for Graham Holdings Company, providing a clear indication of the company's intention to address its financial obligations and refinance existing debt. This move demonstrates the company's strategic approach to managing its financial structure and optimizing its capital position for future growth and stability. As a result of these announcements, the company's shares have moved -1.93% on the market, and are now trading at a price of $1077.97. For more information, read the company's full 8-K submission here.
