Investor group ups offer for Laureate Education; tender offer to begin by June 8

By Lisa Kerner

Charlotte, N.C., June 4 - Laureate Education, Inc. accepted an increased offer of $62.00 per share, or about $3.82 billion, from the investor group led by Douglas L. Becker, the company's chairman and chief executive officer. A 20-day tender offer is slated to begin on or before June 8.

The group's prior offer of $60.50 per share was made on Jan. 28.

Laureate's special committee unanimously recommended the new offer to the company's board, which then approved the deal.

More than 50% of Laureate's outstanding shares must be tendered. In a second-step merger, all remaining shares of Laureate's common stock will be converted into the right to receive the same price paid per share in the tender offer.

Equity investment for the transaction will be provided by the investors as well as through debt financing by Goldman Sachs Credit Partners LP, Citi Markets & Banking, Credit Suisse, Credit Suisse Securities (USA) LLC, JPMorgan Chase Bank, NA and J.P. Morgan Securities Inc.

The investor group includes Kohlberg Kravis Roberts & Co.; Citi Private Equity; S.A.C. Capital Management, LLC; SPG Partners; Bregal Investments; Caisse de depot et placement du Quebec; Sterling Capital; Makena Capital; Torreal SA; and Brenthurst Funds.

Morgan Stanley and Merrill Lynch & Co. provided fairness opinions to the special committee.

Baltimore-based Laureate Education provides higher education to students through a network of campus-based and online universities.

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