Educate to repay some term loan debt with $48.8 million IPO proceeds

By Sara Rosenberg

New York, Sept. 23 - Educate Inc. plans to use the net proceeds from an about $48.8 million initial public offering of common stock to repay debt under its secured credit facility, according to a 424B4 filed with the Securities and Exchange Commission Thursday.

There was $170 million outstanding under the term loan and no outstanding borrowings under the $30 million revolving credit facility as of June 30. This facility had been refinanced on April 27, with pricing on the term loan and revolver set at Libor plus 300 basis points.

The company has changed its estimates on the IPO pricing since first announcing its plans, with the price starting out at $15 per share in an S-1A filed on June 29 and moving all the way to $11 per share in this latest filing.

Educate is a Baltimore supplemental education services provider.

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