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Education Management increases payment for 10¼% notes in tender offer
By Angela McDaniels
Tacoma, Wash., Oct. 2 - Education Management LLC increased the price it will pay for 10¼% senior subordinated notes due 2016 tendered in an offer for the notes and the company's 8¾% senior notes due 2014 that began on Sept. 21, according to a company news release.
The company will pay $1,125 for each 10¼% note tendered by the early tender deadline and $1,095 for each 10¼% note tendered after that time.
It was previously offering $1,110 for notes tendered by the early tender deadline and $1,080 for notes tendered after that time.
The payment for the 8¾% notes remains $1,070 for notes tendered by the early tender deadline and $1,040 for notes tendered after that time.
Education Management will also pay accrued interest up to but excluding the settlement date.
The company also extended the early tender deadline to 5 p.m. ET on Oct. 6 from Oct. 5 and the offer expiration to 5 p.m. ET on Oct. 21 from Oct. 20.
Education Management will pay up to $323.9 million in the offer, including the amount to be paid for the notes and accrued interest.
The $385 million of 10¼% notes have first priority, and the $375 million of 8¾% notes have second priority.
The offer began Sept. 21.
There is no minimum for the offer. However, completion of the tender is subject to Education Management Corp. completing its planned initial public offering.
Goldman, Sachs & Co. (212 357-4692 or 800 828-3182, attention: Liability Management Group) and J.P. Morgan Securities Inc. (800 245-8812, attention: High Yield Syndicate) are dealer managers. Global Bondholder Services Corp. is the information agent and depositary (banks and brokers call 212 430-3774, others 866 387-1500).
Education Management is a Pittsburgh-based provider of post-secondary education.
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