Education Management shifts tranche sizes on $760 million two-part note offering

By Paul A. Harris

St. Louis, May 17 - Education Management Corp. has shifted the tranche sizes of its $760 million two-part offering of notes, according to an informed source.

The company has upsized to $375 million from $320 million its offering of eight-year senior notes (B3/CCC+), while downsizing to $385 million from $440 million its offering of 10-year senior subordinated notes (Caa1/CCC+).

Price talk is 8¾% to 9% for the eight-year senior notes, while the 10-year senior subordinated notes are talked 150 basis points behind the senior notes.

Both tranches are expected to price on Thursday.

Credit Suisse, Goldman Sachs & Co., Merrill Lynch & Co. and Banc of America Securities LLC are joint bookrunners for the Rule 144A with registration rights transaction.

Proceeds will be used to fund the acquisition of the company by an investor group led by Providence Equity Partners and Goldman Sachs Capital Partners.

Education Management is a Pittsburgh-based provider of private post-secondary education.

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