Education Affiliates, Inc.

Summary

Lender Advisor

Education Affiliates (“EA”) operates a network of post-secondary schools in the U.S. providing diplomas, certificates and degrees in nursing, allied health, dental assisting, cosmetology, general business management programs and vocational training for commercial driving, HVAC, welding and other crafts. Founded in 2004, EA is a private equity sponsored company with a total of 54 school locations in 17 states and approximately 17,000 students.

CMA was jointly retained by the counsels to the Agents to the lender groups as its financial advisor.

CMA’s role included assessing the 13-week cash forecast and liquidity risks/opportunities, reviewing the 2013 outlook and 2014 business plan, evaluating regulatory compliance and jeopardies (including composite score and 90/10 calculations), capital expenditures, pending acquisitions and discontinued operations.

Engagement Highlights

Helped EA implement a 13-week cash forecasting process and identified liquidity risks and opportunities with management.
Vetted the financial projections used for structuring the refinancing and recapitalization and worked with management to refine assumptions and initiatives.
Our team reviewed Dept. of Education regulatory compliance, accreditation renewals, ongoing legal litigation and liabilities and internal audit practices and procedures.
We reviewed the business operations and made recommendations for improving student acquisition costs, retention initiatives, marketing operations and advertising expenditures.
We evaluated a strategic acquisition and helped drive the urgency to close concurrently.
The CMA team worked onsite with EA management to help the agents and the lender groups negotiate and successfully close a $188M refinancing/recapitalization in nine weeks.
Advised on refinancing negotiations between the financial sponsor, the borrower and the lenders.

Education Affiliates, Inc.

Summary

Lender Advisor

Engagement Highlights

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