Edmentum, (the “Company”), a leading provider of proven online learning solutions, announced today an agreement with the unanimous support of its first lien lenders, second lien lenders, and equity sponsors to recapitalize its balance sheet and reduce its outstanding indebtedness while simultaneously providing additional capital to better position the Company for long-term growth and profitability. 

The consensual transaction will significantly enhance the Company’s short-term and long-term liquidity through a paydown of the Company’s $231 million in first lien debt, a substantial reduction in the Company’s $140 million of second lien debt and a commitment of $35 million of new capital from the Company’s second lien lenders to support the transaction and the Company’s pursuit of growth opportunities. The second lien lenders will own substantially all of the equity in the reorganized company. 

Vin Riera, Chief Executive Officer of Edmentum, commented, “We are very excited about how this transaction enhances our ability to support school districts to drive student achievement. A more appropriately-sized capital structure, along with Edmentum’s market-leading products and strong customer relationships, will position us well to accelerate product investment and growth. We appreciate the support of our customers, financial stakeholders, and employees throughout this process.”

The recapitalization is expected to close in the current calendar quarter. Closing of the recapitalization is subject to the negotiation and execution of definitive documentation for the transaction satisfactory to the Company, its lenders, and its equity holders. Edmentum will continue normal business operations throughout the process, with no expected disruptions to its relationships with its employees, customers, vendors, or business partners. 

In connection with the foregoing transaction, the Company is advised by Kirkland & Ellis LLP, as legal counsel, and Evercore Group, L.L.C. and FTI Consulting, Inc., as financial advisors. The first lien lenders are advised by Sidley Austin LLP, as legal counsel, and CDG Group, LLC, as financial advisors. The second lien lenders are advised by Dechert LLP, as legal counsel, and Houlihan Lokey Capital, Inc., as financial advisors. 

About Edmentum, Inc.

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 program solutions to empower 21st century teaching and learning. For more information, visit www.edmentum.com.

Edmentum is a trademark of Edmentum, Inc.

# # #