McGraw-Hill - Proceeds Of The Education Business Are A Little Disappointing

Shares of McGraw-Hill (MHP) rose 0.4% in Monday's trading session. The global information company announced the sale of its McGraw-Hill Education business to Apollo Global Management, for roughly $2.5 billion.

The Deal

McGraw-Hill announced on Monday that it will divest its education business to Apollo Global Management, for a total consideration of $2.5 billion. As part of the deal, McGraw-Hill will receive $250 million in senior unsecured notes at an annual interest rate of 8.5%.

The remainder of the company will be renamed into McGraw-Hill Financial. The division will be a high growth, high margin content and analytics company in the global capital markets and commodity markets.

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