Edison Schools Inc. Closes $35 Million Debt Financing with Merrill Lynch Monday, November 05, 2001 Edison Schools Inc. today announced that it has closed on a $35 million credit facility with Merrill Lynch. The financing provides for certain receivables to be sold or contributed to a wholly-owned special purpose company, Edison Receivables Company LLC, which can draw on the credit line to fund the purchases. The Company has not yet drawn on the facility. As we discussed on our last investor call, securing a corporate credit line was one of our key financing objectives and we are pleased to be able to announce success. Given the difficult state of todays credit markets, we are particularly happy with this achievement, commented Adam Feild, Edisons Chief Financial Officer. The additional liquidity which this facility provides further strengthens our financial position. Also, it is our first significant step in moving from equity to debt as our source for growth capital. In that regard, it is important to note that we were able to obtain this facility without the use of equity features, such as warrants, options, or conversion provisions. In other capital related announcements, the Company reiterated its expectation that any capital investment required as part of a potential contract in Philadelphia would be financed through a combination of cash-on-hand, technology leases and corporate debt, consistent with past practice and prior guidance. The Company said it does not expect to seek additional equity funding in the event a contract in Philadelphia is signed. Separately, the Company announced that it will host a conference call with analysts and investors to discuss the status of its new business opportunity in Philadelphia. The conference call will occur today, Monday, November 5, at 4:30 p.m. Interested parties may listen to the call, which will be broadcast live over the Internet, through the Companys website at www.edisonschools.com. To access the webcast, participants should visit the Investor Relations section of the website at least fifteen minutes prior to the start of the conference call to download and install any necessary audio software.
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