Education Management Wins Creditor Support for Debt Restructuring
Career College Central Summary:
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Education Management Corp., a private equity-backed, for-profit college operator, said it reached an agreement with its creditors that will reduce the company's net debt by about $1.1 billion.
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Upon completion of the restructuring, shareholders of the Pittsburgh company, whose stock is listed on the Nasdaq Stock Market , will see their stake being reduced to about 4%, Education Management said.
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The buyout sponsors- Goldman Sachs Group 's GS Capital Partners , Providence Equity Partners and Leeds Equity Partners-collectively owned about 84.4% of Education Management 's outstanding stock as of Dec. 31, according to a Feb. 14 filing with the Securities and Exchange Commission.
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According to Education Management 's most recent proxy statement, dated Oct. 7, GS Capital was the company's largest shareholder, with more than 43%. Providence and Leeds Equity held close to 33% and 8%, respectively.
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The restructuring marks another milestone of Education Management , whose colleges offer programs in arts, health, design, psychology, culinary arts and other disciplines.
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The company operates colleges primarily under four brands: The Art Institutes , Argosy University , Brown Mackie Colleges and South University.
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