Education Management (EDMC) IPO Prices at $18, Low End of Range
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Education Management Corporation (Nasdaq: EDMC) announced the pricing of its initial public offering of 20,000,000 shares of its common stock at $18.00 per share, the low end of the expected $18-$20 range. The shares will begin trading today on the NASDAQ under the ticker symbol "EDMC."
EDMC expects to receive net proceeds from the offering of approximately $334.8 million (or $385.0 million if the underwriters' option is exercised in full), after deducting underwriting discounts and commissions and estimated offering expenses. EDMC expects to use the net proceeds from the offering to (i) contribute up to $323.9 million to its subsidiary, Education Management LLC, to repay a portion of its indebtedness and (ii) pay $10.9 million of the termination fee of approximately $29.5 million under EDMC's Sponsor Management Agreement. Any additional proceeds received as a result of the exercise of the underwriters' option to purchase additional shares will be used for general corporate purposes, which may include the repayment, redemption or refinancing of EDMC's indebtedness, including indebtedness under EDMC's senior secured credit facilities.
Goldman, Sachs & Co. and J.P. Morgan, along with BofA Merrill Lynch, Barclays Capital, Credit Suisse and Morgan Stanley are acting as joint bookrunning managers for the offering. Robert W. Baird & Co., William Blair & Company, BMO Capital Markets, Piper Jaffray, Signal Hill, Stifel Nicolaus and Barrington Research are acting as co-managers.
EDMC, with approximately 110,800 enrolled students as of October 2008, is among the largest providers of post-secondary education in North America, with a total of 92 primary locations in 28 U.S. states and Canada. EDMC offers academic programs to its students through campus-based and online instruction, or through a combination of both.
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no stock options for employees
EDMC Employee on Oct 22, 2009 04:19 PMcan you believe that EDMC never offered a purchase program to its employees?! I'm sure the fat cats got a nice option!