Funds to be used for New Edison Schools in Philadelphia
Plus Other Additional Sites for Fall '02
NEW YORK, Aug. 1 /PRNewswire-FirstCall/ -- Edison Schools (Nasdaq: EDSN),
the nation's leading private manager of public schools, 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.
About Edison
Edison Schools manages 133 public schools with a total enrollment of
approximately 74,000 students. Through contracts with local school districts
and public charter school boards, Edison generally assumes educational and
operational responsibility for individual schools in return for funding that
is comparable to that spent on other public schools in the area. Over the
course of three years of intensive research, Edison's team of leading
educators and scholars developed an innovative, research-based curriculum and
school design. Edison opened its first four schools in August 1995, and has
grown rapidly in every subsequent year. For more information, please visit
http://www.edisonschools.com.
Any statements in this press release and any other press release issued by
Edison on or about the date hereof about future expectations, plans and
prospects for Edison, including statements containing the words "believes,"
"anticipates," "plans," "expects," "will," and similar expressions, constitute
forward-looking statements within the meaning of The Private Securities
Litigation Reform Act of 1995. Actual results may differ materially from
those indicated by such forward-looking statements as a result of various
important factors, including the risk factors discussed in our most recent
quarterly report filed with the SEC, and other factors such as, among other
things, the possibility that: (1) Edison, its independent auditors and/or the
SEC may identify additional items that materially and adversely affect
Edison's financial results; (2) the financing discussed separately by Edison
today may not be consummated; and (3) the events relating to the informal SEC
inquiry or its settlement may result in defaults under Edison's material
agreements or give rise to costly and protracted litigation against Edison.
The forward-looking statements included in this press release represent
Edison's estimates as of August 1, 2002. Edison anticipates that subsequent
events and developments will cause its estimates to change. While Edison may
elect to update these forward-looking statements at some point in the future,
Edison specifically disclaims any obligation to do so. These forward-looking
statements should not be relied upon as representing Edison's estimates or
views as of any date subsequent to August 1, 2002.
SOURCE Edison Schools
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Related links:
http://www.edisonschools.com
CONTACT:
Chip Delaney, Vice Chair, +1-212-419-1600, or
Adam Tucker, VP Communications, +1-212-419-1602, both of Edison
Schools
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