Magazine article American Banker

Goldman, HSBC to Market $6B Simon & Schuster Loan

Magazine article American Banker

Goldman, HSBC to Market $6B Simon & Schuster Loan

Article excerpt

The London offices of Goldman, Sachs & Co. and HSBC Investment Bank PLC will syndicate a three-part, $6 billion loan to finance Pearson PLC's planned buyout of Viacom Inc.'s Simon & Schuster education publishing business.

The deal by London-based Pearson, announced late Sunday, beat out rival bids by leveraged-buyout firm Kohlberg Kravis Roberts & Co. and a group led by junk-bond king Michael R. Milken. Pearson said it would pay $4.6 billion for the publishing unit.

Goldman and HSBC, a unit of London's HSBC Holdings, will syndicate three parts for Pearson: a $2 billion five-year reducing, revolving term loan; a $1.5 billion, 364-day facility; and a $2.5 billion, five-year reducing term loan.

Pricing and the roles of the banks were unavailable late Tuesday.

If Goldman leads the entire deal, it would represent 50% of the total loans led by the firm in the United States in the first quarter, according to Securities Data Co. Globally, Goldman has been more active. The investment bank syndicated 58 global loans, worth $47.6 billion in 1997, ranking it 23d among global lenders.

Similarly, HSBC hardly did any corporate lending business in the United States last year, but syndicated 108 global loans, worth $64. …

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