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 Edison Schools Reaches Agreement on Terms for $40 million in New Funding to Finance Growth Tuesday, June 04, 2002 Edison Schools announced today that it had reached agreement on terms for $40mm in new funding through credit lines from Chelsey Capital and Merrill Lynch. Definitive terms have been agreed upon. The financing is subject to final documentation and closing conditions. The capital will be used, in part, to fund the companys launch of new schools in Philadelphia and elsewhere as well as to open expansion sites in more than a dozen other cities this fall. As we have done in every year of our operations, we have been successful in finding the capital we need to fund our growth and expansion, said Chris Whittle, Edisons CEO. We are very pleased to add Chelsey Capital as one of the financial institutions supporting the continuing growth of one of the nations largest systems of schools. We believe deeply in Edisons mission to create better public schools. Were excited not only about the economic opportunity that this company represents to investors, but by its tremendous efforts on behalf of children, particularly those within our nations inner cities. said William Wachtel, general counsel of Chelsey. Were pleased to add my colleague Bill Wachtel and his recognized passion for the betterment of the public sector, said Benno Schmidt, Edisons Chairman. The terms of the financing provide that Merrill Lynchs existing $35 million accounts receivable-backed facility be augmented by $20 million of which $10 million will be funded by Merrill Lynch and $10 million will be funded by Chelsey. In addition, Chelsey will establish a separate and additional $20 million facility that is secured by Edisons real estate and note receivable assets which will be drawn upon as additional management agreements are entered into. Lenders in the transactions will receive a warrant to purchase approximately 10.7 million shares of common stock for $1.00 per share.
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