The credit facility was created with a syndicate of 19 banks. Reed Elsevier said its existing $3 billion revolving credit facility, which matures in May 2010, has been simultaneously reduced in size to $2.5 billion. The company said this reduction reflects its lower short-term borrowing requirements. As of Dec. 31, 2008, $38 million of the revolving credit facility had been drawn.
The announcement of the new credit facility came after Reed Elsevier announced last month a round of job cuts in the U.S. and pulled Reed Business Information off the market late last year after offers dipped to less than $1 billion for the unit, which had an original asking price of $2 billion.
Reed Elsevier is also facing a potential strike in the U.K., according to a report in The Guardian. —Sean Callahan