Key Developments For Education Management Corporation
Education Management Corporation (EDMC.O) (Nasdaq)
Education Management Corp. Comments On FY 2010 Guidance; Issues FY 2010 EPS Guidance Slightly Above Analysts' Estimates-Conference Call
Education Management Corp. announced that for fiscal 2010, it expects revenue growth to be at or slightly ahead of the enrollment growth and net income is expected to grow by at least 40%. Earnings per share (EPS) for fiscal 2010 is expected to be between $1.06 and, $1.12 for fully-diluted share. According to Reuters Estimates, analysts were expecting the Company to report revenues of $2.34 billion, net income of $143 million and EPS of $1.05 for the same period.
Education Management Corp. Announces Pricing Of Its Initial Public Offering
Education Management Corp. announced the pricing of its initial public offering of 20,000,000 shares of its common stock at $18.00 per share. The shares are expected to begin trading on The Nasdaq Global Select Market on October 2, 2009 under the ticker symbol EDMC, and the offering is expected to close on October 7, 2009. The Company has granted the underwriters a 30 day option to purchase up to an additional 3,000,000 shares at the initial public offering price. The Company expects to receive net proceeds from the offering of approximately $334.8 million, after deducting underwriting discounts and commissions and estimated offering expenses. The Company expects to use the net proceeds from the offering to: contribute up to $323.9 million to its subsidiary, Education Management LLC, to repay a portion of its indebtedness and pay $10.9 million of the termination fee of approximately $29.5 million under the Company's Sponsor Management Agreement. Any additional proceeds received as a result of the exercise of the underwriters' option to purchase additional shares will be used for general corporate purposes, which may include the repayment, redemption or refinancing of the Company's indebtedness, including indebtedness under the Company's senior secured credit facilities. Goldman, Sachs & Co. and J.P. Morgan, along with BofA Merrill Lynch, Barclays Capital, Credit Suisse and Morgan Stanley are acting as joint bookrunning managers for the offering.
Education Management Corp. Commences Initial Public Offering Of Common Stock
Education Management Corp. announced that it has commenced an initial public offering of 20,000,000 shares of its common stock. All shares included in the initial public offering are being offered by the Company. The estimated range for the initial public offering price is $18.00 to $20.00 per share. The shares are expected to be approved for listing on The NASDAQ Global Market under the ticker symbol EDMC. The underwriters have the option to purchase from the Company up to an additional 3,000,000 shares of common stock, on the same terms and conditions, to cover over-allotments, if any. The Company intends to use the net proceeds from the offering to repay a portion of indebtedness of its subsidiary, Education Management LLC, to pay a termination fee under a Management Agreement with certain of its shareholders and, if any proceeds remain, for general corporate purposes.
Education Management Corp. Appoints New Chief Financial Officer
Education Management Corp. announced that Edward H. West has been appointed as Executive Vice President and Chief Financial Officer.
Education Management Corp. Chairman Retires
Education Management Corp. announced that the Company Chairman Robert B. Knutson has retired.
