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  "documentTitle": "Houghton Mifflin Harcourt (HMHC)",
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  "authorName": "Engine Capital",
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  "presentationDate": "2022-03-22 00:00:00",
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  "notes": "Includes a footnote regarding interest rate assumptions for the recapitalization.",
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      "text": "Starting from $21 per share, this recapitalization plan implies a 3-year IRR of 26%",
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      "text": "HMHC refinances its existing debt, conservatively re-levers its balance sheet to 2x EBITDA and executes a Dutch tender offer between $21 and $22 per share. This allows HMHC to repurchase around 19% of its shares outstanding at $21.50 per share, allowing short-term investors to exit. This plan leads to significantly more value for long-term shareholders.",
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      "text": "Price per share: $41.85",
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      "text": "(1) Assumes interest rate of 6% on incremental debt raised for recapitalization",
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      "text": "Recapitalization assumptions and Implied value creation under Engine standalone plan",
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      "kind": "title",
      "text": "Engine believes there is a superior plan for HMHC shareholders that would result in $42 per share at the end of 2024",
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