News
KKR-backed Simon & Schuster asks to delay financial results
(Bloomberg) — Publisher Simon & Schuster Inc. is seeking a 90-day extension to report its audited financial results for 2023 and the first quarter of 2024, according to people with knowledge of the matter.
Bloomberg’s Most Read
The privately held company told creditors this week that it needs more time to report results, said the people, who asked not to be identified discussing a private matter. The company, which was spun off from Paramount Global last year, is working with a different auditor, they said.
The request comes as the company releases a financial outlook that shows a decline of about 8% in revenue in 2023 compared with the same period the previous year, they said. Revenue in the first quarter also fell year over year. 2022 revenues were boosted by strong sales for author Colleen Hoover, an author with a strong social media following, another person familiar said.
Some lenders are now asking the company to provide more data on its financial performance before Thursday’s consent deadline, according to the people. Simon & Schuster offered creditors a temporary extension of its call protection – which protects against early debt repayment – in exchange for allowing the publisher to delay its financial report.
Meanwhile, its first-quarter cash balance was materially higher than previous forecasts, one of the people said.
KKR & Co last year acquired Simon & Schuster for $1.62 billion in an all-cash transaction, according to a press release.
Its roughly $1.1 billion term loan is priced slightly lower, at about 99.75 cents on the dollar, compared with just above par before the news, according to data compiled by Bloomberg.
Messages left with the company were not returned, and a KKR representative declined to comment.
Bloomberg Businessweek Most Read
©2024 Bloomberg LP