DEBT FINANCING. McGraw-Hill to split into two listed companies

New YORK (Reuters)-McGraw-Hill Cos Inc (MHP.N) plans to split into two public companies, with a farm of his ratings Standard Poors index & and companies and the other holding their publishing units of textbooks.
The move, announced Monday, is a big step toward the dissolution and reorganization of mini-conglomerate that was requested by activist investors last month at a meeting with directors of McGraw-Hill.
Investors — Jana Partners LLC, a hedge fund and teacher pension fund — Ontario argued that split the company would increase its shareholder value.
A spokesman for Jana not immediately responded to a request for comment.
The company's shares rose 2.6% to $ 39.74 in Commerce before.
Terry McGraw, President and CEO of the company and a great-grandson of the founder, lead markets, McGraw-Hill, who will perform the & Standard Poors corporate credit rating from S P & business market index and S & P Capital IQ, which provides data and analytical tools on companies and markets.
The company said it began looking for a new CEO for education, McGraw-Hill, which will contain the books publication and education units. The current head of those undertakings is Robert Bahash, 66, a long time Chief Financial Officer of the Corporation who stepped on his current post last year after the Executive of education higher than the left.
The break-up will be structured as a tax-free spin-off of the business of education to the shareholders of McGraw-Hill, is expected to be completed by the end of 2012, the company said in a statement.
Companies of markets will take about $ 4 billion of revenue in 2011, and education companies will have about $ 2.4 billion in revenue, he said.
McGraw-Hill said will make significantly reduced from US $ 1 billion of corporate and administrative expenses and cost of technology.
Evercore and Goldman Sachs are advising on the spin-off.
The company said it would accelerate share repurchase for a total of $ 1 billion in 2011. He said it has bought back $541 million shares so far this year. (Reports by David Henry in New York, Jochelle Mendonca in Bangalore; Editing by Sriraj Kalluvila and John Wallace)

Posted in: DEBT FINANCING. companies,listed,McGrawHill,split