Edmentum Completes Transaction to Recapitalize Balance Sheet and Strengthen Financial Position

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Edmentum Completes Transaction to Recapitalize Balance Sheet and Strengthen Financial Position

Edmentum strengthens position for long-term growth

June 10, 2015 - Minneapolis

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Kevin Briody


Edmentum, a leading provider of proven online learning solutions,announced today that it has completed the previously announced transaction with its lenders and equity sponsors to recapitalize its balance sheet.  The recapitalization, which was first announced on April 20, 2015, significantly reduces the amount of the company’s outstanding indebtedness and provides additional capital to better position it for long-term growth.

The consensual recapitalization significantly enhances the company’s liquidity through a pay-down of a portion of the company’s first lien debt, cancelation of the company’s second lien debt, and a commitment of $35 million of new capital from the company’s existing second lien lenders to fund the transaction and the company’s pursuit of growth opportunities.  As a result of the recapitalization, the second lien lenders own substantially all of the equity in the company. 

Vin Riera, Chief Executive Officer of Edmentum, commented, “We are very excited about the completion of the recapitalization and what it means in terms of our capability to expand investments in our products.  Adoption by school districts of online curriculum and assessment solutions like those we provide continues to accelerate, and this transaction ensures our long-term ability to support our customers’ critical initiatives and programs.  We appreciate the patience and support that our customers, employees and financial stakeholders have shown throughout this process, and look forward to continuing to partner with them in driving student achievement.”

About Edmentum
Edmentum, Inc. is a leading provider of proven online and mobile learning solutions designed to drive student achievement for academic and career success. With more than 50 years of experience driving significant advances in the industry, Edmentum offers a wide variety of innovative solutions to empower teaching and learning, including flagship brands Study Island, Plato Courseware, and EducationCity. For more information, visit www.edmentum.com.

Edmentum, Plato, Study Island, and EducationCity are trademarks of Edmentum, Inc.