Looks like Houghton Mifflin Harcourt’s trade division is off the block…for now.

Education Media & Publishing Group, the educational publisher formed by Barry O’Callaghan’s leveraged buy-outs of Boston-based Houghton Mifflin and Harcourt, has agreed a refinancing which will lower its debt load and interest bills but heavily dilute equity holders, reports the FT. The refinancing had averted any risk of a Chapter 11 filing, the newspaper adds.

The newspaper also reports that HMH has decided against a renewed attempt to sell its consumer book arm, hoping to use the small division to bolster its core educational publishing business.

The finance agreement will cut EMPG’s long-term debt, now standing at about $7.6bn, by more than $1bn and reduce annual interest costs by $100m, in exchange for a 45% dilution of current shareholders.

I’m sure the shareholders are thrilled.