Barnes & Noble Education to receive $95M investment boosting long-term financial position

Business people negotiating a contract, they are pointing on a document and discussing together

Basking Ridge-based Barnes & Noble Education on Tuesday said it entered into a definitive deal with Immersion Corp. and existing shareholders and strategic partners regarding new equity and refinancing transactions to boost long-term financial position.

Under the deal, which is expected to close in June, Barnes & Noble Education will receive $95 million of new capital through a $50 million equity investment and a $45 million fully backstopped equity rights offering led by Immersion.

Additionally, B&N Education said it can eliminate about $34 million of debt through equitization of second lien term loans, reflecting the strong support of key strategic partners.

The deal is projected to infuse net cash proceeds after transaction costs of about $75 million.

The proposed transactions are subject to shareholder approval and other closing conditions but will enable the company to substantially deleverage its balance sheet, continue to strategically invest in innovation, and operate from a position of strength.

“Today’s announcement marks a significant milestone in our strategic review process and, we believe, represents the best path forward for our shareholders, employees and the students, institutions, alumni, fans and communities we serve,” Michael Huseby, CEO of BNED, said. “BNED is a critical part of the education ecosystem, and we are confident that this transaction will allow us to grow our business profitably as we enhance our market leading offerings and build on the strong momentum of First Day and our other key programs.”

“With a stronger financial foundation, we will be well-positioned to advance our industry leadership by continuing our focus on delivering innovative solutions, an unmatched merchandise assortment and the best-in-class omnichannel customer experience for our valued school partners,” Jonathan Shar, executive vice president, BNED Retail, and president, Barnes and Noble College, said.

Source link

Check Also

Parvis Invest Partners with Goodland Equity Partners to Enhance Real Estate Investment Opportunities Across Canada

Strategic Alliance Expands Parvis’ Network, Broadens Access to Premium Real Estate Investments Nationwide Vancouver, British …

Leave a Reply

Your email address will not be published. Required fields are marked *