Providence Equity Partners and Goldman Sachs Capital Partners have locked up financing for their $3.4 billion leveraged buyout of Education Management Corp. Credit Suisse, Goldman Sachs, Merrill Lynch and Bank of America are leading the credit. The financing consists of a $760 million bridge facility priced at LIBOR plus 5 1/2%; a $1.185 term loan and a $250 million revolver, both priced at LIBOR plus 2 1/2%. The banks held a meeting May 4.
The company will hold a shareholder meeting May 25 to vote on the acquisition and the transaction is expected to be completed this summer. EDMC is among the largest providers of private post-secondary education in North America based on student enrollment and revenue. Merrill Lynch served as the financial advisor to EDMC and Kirkpatrick & Lockhart Nicholson Graham served as the company's legal advisor.
Goldman Sachs, Credit Suisse and Leeds Equity Partners served as financial advisors to Providence Equity Partners and Goldman Sachs Capital Partners, and Simpson Thacher & Bartlett served as the pair's lead legal advisor. Calls to James Sober, v.p., finance, were not returned. A call to an official at Providence was not returned. A spokesman for GSCP declined comment.