Education Management Corporation Announces Pricing of its Initial Public Offering

October 1, 2009 8:18 PM EDT

PITTSBURGH, Oct. 1 /PRNewswire-FirstCall/ -- Education Management Corporation ("EDMC"), a leading provider of post-secondary education, today announced the pricing of its initial public offering of 20,000,000 shares of its common stock at $18.00 per share. The shares are expected to begin trading on The Nasdaq Global Select Market on October 2, 2009 under the ticker symbol "EDMC," and the offering is expected to close on October 7, 2009. EDMC has granted the underwriters a 30-day option to purchase up to an additional 3,000,000 shares at the initial public offering price.

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.

A registration statement relating to shares of the common stock of Education Management Corporation has been declared effective by the U.S. Securities and Exchange Commission. This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described above, nor shall there be any sale of such shares of common stock in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

The offering of these securities will be made only by means of a prospectus, copies of which may be obtained from Goldman, Sachs & Co. at Prospectus Department, 85 Broad Street, New York, New York 10004 (facsimile: 212-902-9316; email: prospectus-ny@ny.email.gs.com) and J.P. Morgan Securities Inc. at National Statement Processing, Prospectus Library, 4 Chase Metrotech Center, CS Level, Brooklyn, New York, NY 11245 (phone: 718-242-8002).

About Education Management Corporation

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.

This press release may include information that could constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements may involve risk and uncertainties that could cause actual results to differ materially from any future results encompassed within the forward-looking statements. Factors that could cause or contribute to such differences include those matters disclosed in EDMC's Securities and Exchange Commission filings. Past results of EDMC are not necessarily indicative of its future results. EDMC does not undertake any obligation to update any forward-looking statements.

SOURCE Education Management Corporation

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