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  "documentTitle": "Houghton Mifflin Harcourt (HMHC)",
  "authorId": "27_Engine_Capital",
  "authorName": "Engine Capital",
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  "presentationDate": "2022-03-22 00:00:00",
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  "notes": "LBO model transaction overview slide.",
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      "text": "This high level of leverage highlights the lenders' confidence in the business and its free cash flow generation",
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      "text": "Leverage assumptions: To finance the transaction, Veritas will borrow at least $1,870M, which implies leverage of 6.9x 2021 Adjusted EBITDA. In our LBO model, we assumed $100M draw from credit facility, implying 7.3x leverage.",
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      "text": "Enterprise Value: $2,613",
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      "text": "On February 22, 2022, Houghton Mifflin announced that it would be acquired by Veritas for $21 per share",
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      "text": "Source: Public company filings and disclosures. Notes: (1) Cash and debt figures as of 12/31/21 (2) Sources and uses assume deal closes on 3/31/22 using net debt per Schedule 14D-9",
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      "text": "Houghton Mifflin capitalization at deal price",
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