Partnership with Friendship Public Charter School in Washington, D.C.,
Stronger than Ever
NEW YORK, Nov. 13 /PRNewswire-FirstCall/ -- Edison Schools (Nasdaq: EDSN),
the nation's leading public school partner, announced today that one of its
largest clients, Friendship House, has closed on a $44.9 million tax-exempt
bond financing that will allow the Friendship Public Charter School to repay
existing loans for building purchases and renovations, expand its Woodridge
campus, and upgrade technology on all four of its campuses. Friendship House
has also renewed its management agreement with Edison through 2008.
The Friendship-Edison partnership began five years ago and has grown to
become the largest charter school in the nation, comprising four school
campuses serving more than 3,000 K-12 students in Washington, D.C. Friendship
Public Charter School, which was founded by Friendship House, a 99-year-old
not-for-profit social service provider, holds a 15-year charter granted by the
D.C. Public Charter School Board.
"We are thrilled with our renewed management agreement with Edison and the
outcome of this transaction," said Donald L. Hense, president & CEO of
Friendship House and chair of Friendship Public Charter School. "Through our
partnership with Edison, we have created the largest charter school in the
nation, and our student achievement results have put us among the top
achieving schools in the entire district in only a few short years."
The placement of the District of Columbia Revenue Bonds is being managed
by Citigroup Global Markets. The bonds are insured by ACA Financial Guaranty
Corporation and are rated "A" by Standard & Poor's. The underlying rating on
the bonds by Standard & Poor's is "BBB."
The proceeds of the bond offering will be used to repay existing debt,
including $17.2 million owed to Edison Schools Inc., to finance facilities
improvements, technology and equipment acquisition and expansion, and to fund
reserves and cover transaction costs.
"This transaction is important to Edison on a number of fronts," said
Chris Whittle, Edison's founder and CEO. "First and foremost, it reaffirms
our charter school strategy of working with strong community partners to
establish independent charter schools that deliver great academic results and
are financially viable. Second, it repays to Edison significant proceeds that
Edison can reinvest in the growth of all of its lines of business. Third, the
investment grade rating reflects the continued maturation of the charter
school debt market and the increasing comfort of municipal bond investors with
the charter school movement."
With this renewal, Edison remains the country's largest manager of charter
schools serving more than 25,000 charter school students across the country.
"We are thrilled to be able to continue our partnership with such a venerable
and dedicated organization as Friendship House-we have learned so much from
one another," said Joe Keeney, president of Edison's Charter School Division.
"This contract renewal gives us the opportunity to keep our Friendship
partnership schools in their rightful place among the finest schools in D.C."
Jeanne Allen, president of the Center for Education Reform, noted the
significance of the Friendship renewal and the bond deal. "The importance of
this partnership and transaction cannot be underestimated. It's a clear vote
of confidence -- from parents and teachers to community leaders and investors
-- for public/private partnerships and choice. The Friendship Edison
partnership is working!"
Since opening, Friendship Edison Public Charter Schools have experienced
strong achievement growth and success on standardized test scores. These
improvements in national percentile rank are significantly greater than at
other D.C. public schools. Since opening its doors in 1998, Chamberlain
Elementary campus has increased scores by an average of 38 national
percentiles, and Woodridge Elementary campus has raised its scores by an
average of 26 percentiles. Blow Pierce Junior Academy campus has raised its
scores by an average of 21 percentiles since its opening in fall 1999, and
Carter Woodson Senior Academy campus has raised scores by an average of 10
percentiles since opening in fall 2000. Woodson graduated its first high
school senior class in June 2003. Both the graduation and college acceptance
rate were significantly higher than the D.C. public school average.
ABOUT EDISON SCHOOLS
Founded in 1992, Edison partners with school districts, charter boards,
and community groups to raise student achievement through its research-based
school design, aligned assessment systems, interactive professional
development, integrated use of technology and other proven program features.
Edison students are achieving annual academic gains well above national norms.
Edison Schools now serves more than 132,000 public school students in over
20 states through four different business channels: (1) the management of
schools for school districts, (2) charter schools, (3) summer and after-school
programs, and (4) achievement management solutions for school systems. The
Company operates 130 full-year schools and 200 summer schools.
Between 1992 and 1995 and in on-going efforts, Edison's team of leading
educators and scholars has conducted intensive research to develop its school
design and support systems. Edison opened its first four schools in August
1995, and has grown 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. The forward-looking statements included
in this press release represent Edison's estimates as of November 13, 2003.
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
November 13, 2003.
SOURCE Edison Schools
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Related links:
http://www.edisonschools.com
CONTACT:
Adam Tucker, VP, Communications of Edison
Schools, +1-212-419-1602
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