Corinthian Completes Heald Buy

Corinthian Colleges Inc. wrapped up its $395 million purchase of Heald College parent Heald Capital LLC.

Santa Ana-based Corinthian (NASDAQ: COCO) paid cash in the deal. It set up a $280 million credit facility and borrowed money to pay for Heald.

San Francisco-based Heald has 11 campuses and 12,900 students. It was started in 1863 and teaches classes and offers degrees in health care, business, law and IT. In addition to its Bay Area campuses, it has schools in Hawaii and Oregon.

Peter Waller is CEO of Corinthian, which took on about $23.4 million in debt held by a Heald subsidiary.

One reason Corinthian bought Heald was to reduce its own future tax deals.

When the deal was first announced in October 2009, Corinthian said the acquisition will slightly add to earnings in the second half of fiscal 2010 and add about 15 to 20 cents a share to 2011 earnings.


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