Baltimore, March 10, 2009 - Laureate Education, Inc. ("Laureate"), today announced the expiration of its previously announced cash tender offers for its 10 1/4%/11% Senior Toggle Notes due 2015 (the "Toggle Notes") and 11 3/4% Senior Subordinated Notes due 2017 (the "Subordinated Notes" and, together with the Toggle Notes, the "Notes"). The tender offers expired at 5:00 p.m., New York City time, on March 9, 2009 (the "Expiration Date"). On February 6, 2009, Laureate commenced two cash tender offers, one to purchase the maximum aggregate principal amount of Toggle Notes that it could purchase for $20.0 million (subject to increase) (the "Toggle Notes Tender Offer") and one to purchase the maximum aggregate principal amount of Subordinated Notes that it could purchase for $20.0 million (subject to increase) (the "Subordinated Notes Tender Offer"), each at a purchase price per $1,000 principal amount determined in accordance with the procedures of a modified "Dutch Auction."
Based on the final tabulation by Global Bondholder Services Corporation ("GBSC"), the depositary for the tender offers, the total consideration payable under each tender offer per $1,000 principal amount of Notes of each series is $600 (the "Clearing Price"). The Clearing Price for a tender offer was determined by consideration of the "bid price" specified by each holder that tendered Notes into that tender offer, with that bid price representing the minimum consideration such holder was willing to receive for its Notes. The total consideration per $1,000 principal amount of Notes includes an "early participation payment" of $30 per $1,000 principal amount of Notes. All Notes that Laureate purchases that were validly tendered and not withdrawn prior to 5:00 p.m., New York City time, on March 9, 2009 (the "Early Participation Date"), are entitled to the early participation payment.
Laureate received valid tenders from holders of approximately $40.0 million aggregate principal amount of Toggle Notes in the Toggle Notes Tender Offer and approximately $23.6 million aggregate principal amount of Subordinated Notes in the Subordinated Notes Tender Offer. In accordance with the rules and regulations under the Securities Exchange Act of 1934, Laureate accepted for payment all of the Toggle Notes validly tendered and not withdrawn, which will result in Laureate spending approximately $24.0 million to purchase those Toggle Notes. Because the aggregate amount of Subordinated Notes validly tendered and not withdrawn as of the Expiration Date at the Clearing Price would have caused Laureate to spend less than $20.0 million to purchase those Subordinated Notes, Laureate will accept for payment all Subordinated Notes validly tendered and not withdrawn, which will result in Laureate spending approximately $14.1 million (excluding accrued and unpaid interest) to purchase those Subordinated Notes.
All Notes purchased in the tender offers will be retired. Payment on all Notes tendered and accepted in the tender offers, including, with respect to the Subordinated Notes, accrued and unpaid interest to, but not including the date the Subordinated Notes are purchased, will be made promptly.
Laureate retained Citi to serve as dealer manager for the tender offers and GBSC to serve as the depositary and information agent. Questions regarding the tender offers may be directed to Citi at +1 (800) 558-3745 (toll free).
About Laureate Education, Inc.
Laureate Education, Inc., a Maryland corporation headquartered in Baltimore, Maryland, is a leading international provider of higher education services. Laureate International Universities is our global network of 40 accredited campus-based and online universities offering undergraduate and graduate degree programs to nearly 440,000 students around the world. Laureate International Universities' students are part of an international, academic community that spans 18 countries and more than 90 campuses throughout North America, Latin America, Europe, and Asia. Laureate International Universities offer more than 130 career-focused, undergraduate, master's and doctoral degree programs in fields including engineering, education, business, medicine, law, architecture, health sciences, hospitality, culinary arts, and information technology. For more information, visit http://www.laureate-inc.com.