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Edison Schools Completes $40 Million Financing Thursday, August 01, 2002 Edison Scools announced today that it had closed on $40 million in new funding via credit lines from Merrill Lynch and School Services, Inc. The capital will be used, in part, to fund the company’s launch of new schools in Philadelphia and elsewhere as well as to open expansion sites in more than a dozen other cities this fall. The financing provides for Merrill Lynch’s existing $35 million accounts receivable-backed facility to be augmented by $20 million, of which $10 million will be funded by Merrill Lynch and $10 million will be funded by School Services. In addition, School Services will establish a separate and additional $20 million facility secured by Edison’s real estate and note receivable assets which will be drawn upon as additional management agreements are entered into. In connection with the financing, the company will issue a warrant to purchase approximately 10.7 million shares of common stock for $1.00 per share. As part of the arrangement, Edison and School Services announced that they will collaborate on additional projects. Among other initiatives, School Services will seek to develop and distribute more broadly certain intellectual property held by Edison such as its professional development and student achievement management systems. School Services is a newly formed entity organized by Leeds Weld & Co. and the Adler Group. |
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