Exhibit 99.1
WRC LOGO WRC Media Inc.
512 Seventh Avenue
22nd Floor
New York, NY 10018
CONTACT: Richard Nota
WRC Media Inc.
212-768-1150
Fax 212-768-1887
rnota@wrcmedia.com
www.wrcmedia.com
For Immediate Release
WRC MEDIA INC., A LEADING SUPPLEMENTAL EDUCATION PUBLISHER, SECURES FINANCIAL
LIQUIDITY BY CLOSING $145 MILLION SENIOR SECOND-LIEN CREDIT FACILITY
New York, NY, March 31, 2004 - WRC Media Inc. ("WRC" or the "Company") announced
today that it has successfully closed a $145 million senior second-lien credit
facility (the "Second-Lien Facility"), and significantly amended the credit
agreement of its existing senior credit facility (the "First-Lien Facility").
The Company has used the proceeds from the Second-Lien Facility to refinance in
full all term loans outstanding under the First-Lien Facility, to pay down all
borrowings under its revolving credit facility and to pay fees and expenses
related to the transactions, and will keep the balance available for general
corporate purposes. These transactions have resulted in $32 million in available
cash and revolving loans.
Martin Kenney, Chief Executive Officer of WRC, said: "This financing solidifies
our liquidity position and allows us to further invest in successful products,
services and people. It will enable us to stay a market leader by providing
multiple media solutions to learners, teachers, parents and administrators."
The Second-Lien Facility, which matures in March 2009, contains only one
financial covenant, a maximum ratio of senior secured debt to trailing EBITDA
(the "Senior Leverage Ratio") not to exceed 4.25:1.00 for any fiscal quarter,
except for the fiscal quarter ended June 30, 2005, for which the Senior Leverage
Ratio may not exceed 4.50:1.00.
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The First-Lien Facility now also has only one financial covenant, a Senior
Leverage Ratio not to exceed 4.00:1.00 for any fiscal quarter, except the fiscal
quarter ended June 30, 2005, for which the Senior Leverage Ratio may not exceed
4.25:1.00. The maturity of the First-Lien Facility has been extended from
November 2005 to December 2008.
About WRC Media:
* * * * * * *
WRC Media Inc., a leading publishing and media company, creates and distributes
innovative supplementary educational materials for the school, library, and home
markets. WRC Media's product suite includes some of the best-known brands in
education, recognized for their consistent high quality and proven
effectiveness. WRC Media Inc. operates in one industry segment, educational
publishing organized in five principal operating units:
AGS(R) is a leader in producing highly reliable and valid behavior,
ability, achievement, and speech-language assessments for all ages. The
company also publishes a variety of high-interest, low-reading-level
textbooks for middle and high school students, as well as
curriculum-based assessment software and test preparation programs.
CompassLearning(TM) is the leader in research-driven, standards-based
innovative-learning solutions that provide choices to help teachers
manage student performance, personalize learning, and connect communities
of learners. With over 7,000 hours of curriculum and instruction, more
than 20,000 schools use CompassLearning(TM) solutions.
World Almanac Education Group, Inc. publishes the World Almanac(R), the
World Almanac for Kids, Facts On File(R) news periodicals and Internet
services, Gareth Stevens books, and the Funk & Wagnalls(R) encyclopedia.
The company distributes high quality print and electronic education
materials to schools and libraries.
Weekly Reader Corporation publishes Weekly Reader(R) periodicals serving
over 7 million school children. It also publishes other branded
periodicals and instructional materials, including Teen Newsweek(R),
published for middle and high school students.
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WRC Consumer and Sponsored Publishing includes the company's custom
educational publishing company, Lifetime Learning Systems(R) (Lifetime).
Lifetime Learning Systems is the recognized leader in developing
customized educational programs. Lifetime's programs are customized for
sponsors; including corporations, nonprofit associations and government
agencies that have the need to cost effectively convey important public
relations and marketing messages to targeted audiences. The mission of
WRC Consumer and Sponsored Publishing is to continue grow WRC Media
sales. It will mine the value of our brands and grow our consumer
business through alternative outlets and alliances.
Information in this press release may contain forward-looking statements,
including statements regarding our expectations, beliefs, intentions or
strategies that involve a number of risks, uncertainties, and assumptions.
Should any of the risks or uncertainties develop into actual events, or our
assumptions prove to be inaccurate, actual outcomes and results could differ
materially from what is expressed in such forward-looking statements and these
developments or inaccuracies could materially and adversely affect our business,
financial condition and results of operations. Risks and uncertainties relating
to WRC Media's and its subsidiaries' businesses are set forth in the documents
and reports filed from time to time with the Securities and Exchange Commission.
Additional links:
www.wrcmedia.com
www.agsnet.com
www.compasslearning.com
www.weeklyreader.com
www.worldalmanac.com
www.worldalmanacforkids.com
www.facts.com
www.wae.cc
www.childu.com
www.garethstevens.com
www.thinkbox.com
www.lls-online.com
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