Education Management to redeem $47.7 million 10¼% notes due 2016

By Toni Weeks

San Diego, May 5 - Education Management LLC and Education Management Finance Corp. issued a call on April 29 to redeem all $47.7 million of their 10¼% senior subordinated notes due 2016, according to an 8-K filed with the Securities and Exchange Commission.

The redemption price of 105.125 plus accrued interest will be paid on June 1 using cash generated from operations.

The Bank of New York is the trustee.

The premium of $2.4 million and remaining amortization of related deferred financing fees of $600,000 will be recorded as a loss on extinguishment of debt in the fourth quarter of fiscal 2011.

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

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