Reader's Digest Seeks Relief

  • 22 Jun 2003
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Reader's Digest is in the process of negotiating a covenant change on its credit facility, said a company spokesman. Reader's Digest acquired Reiman Publications for $760 million in cash in the fourth quarter of fiscal 2002 and the Pleasantville, N.Y.-based company financed the deal with bank debt. J.P. Morgan and Goldman Sachs lead the loan that includes a $600 million "B" piece. Debt levels reached as high as $950 million, said the spokesman.

The credit facility includes a covenant stating that Reader's Digest must maintain a debt-to-EBITDA ratio of four times, but at the end of the third quarter of fiscal year, the company's debt-to-EBITDA ratio was five times due to a charge against earnings, he explained. Reader's Digest is exceeding payment schedules and debt requirements, but is seeking covenant relief from its lenders, he noted.

 

  • 22 Jun 2003

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Citi 3,691 11 20.69
2 Morgan Stanley 2,420 6 13.57
3 Goldman Sachs 2,096 5 11.75
4 BNP Paribas 1,686 6 9.45
5 Barclays 1,565 4 8.77

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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1 Citi 47,881.49 152 10.95%
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3 Wells Fargo Securities 37,061.63 106 8.48%
4 Bank of America Merrill Lynch 32,097.67 104 7.34%
5 Credit Suisse 28,257.94 85 6.46%