Reed Elsevier Secures $2B in Credit
New credit line follows talk of strike at U.K. division of RBI.
Reed Elsevier, the London-based parent of Reed Business Information, has organized a $2 billion credit facility made up of 19 participating banks, the company said today.
Reed said the “forward start” revolving credit facility will be issued in May 2010 and will mature in May 2012. The company currently holds a $3 billion credit facility that matures in 2010.
The announcement comes after news reports that employees at the U.K. division of RBI are considering going on strike following a workforce reduction last month of 35 staffers. Last month, the U.S. division said it had frozen salaries and reduced its overall workforce by 7 percent following a reorganization into market-focused groups.
Late last year, Reed ended its auction of RBI, which had been on the block since February 2008. The auction faced repeated hurdles since the tightening global credit markets reportedly caused one of the banks in a consortium put together by Reed to back out. Bids for RBI were said to have fallen from approximately $2 billion to $1 billion.
In September, Reed finalized its $4.17 billion purchase of data provider ChoicePoint. Reed, of course, planned to pay off a portion of the debt from the acquisition with proceeds from selling RBI.
Barclays Capital and the Royal Bank of Scotland acted as advisors in organizing Reed’s new credit facility, the company said.