Two educational publishers—one large and established, one small and scrapping to grab market share—have separately completed rounds of financing they intend to use for growth.
Haights Cross Communications Inc., White Plains, N.Y., has closed on $270 million in credit refinancing in an arrangement negotiated by Bear, Stearns & Co. Haights Cross, which had revenues of $163 million in 2002, plans to use the money to pay off bank debt and invest in product development and sales.
"The success of this important transaction in a difficult financial environment speaks to the strengths and long-term prospects of our core businesses," said Haights CEO Peter Quandt.
Also receiving new financing is upstart Cincinnati publisher Atomic Dog Publishing, which has closed on the first $1 million of a $4 million series of financing. The four-year-old hybrid media publisher, whose texts combine online and print components, plans to use the money to bring its products to a wider market by expanding its sales force to include direct field representation.
Atomic Dog's New Breed Textbooks, which use a format that combines paperbacks and online content, are currently in use at almost 1,000 colleges and universities.
"Taking market share away from large, traditional publishers takes talent, time and money," said Atomic Dog publisher and president Tom Duran.
