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Edison Announces Refinancing of $17.2 Million Loan Through Tax-exempt Bond Issue
and Major Charter School Renewal Agreement
Partnership with Friendship Public Charter School in Washington, D.C., Stronger
than Ever
NEW YORK, Nov. 13 /PRNewswire-FirstCall/ -- Edison Schools , the nation's
leading public school partner, announced today that one of its largest clients,
Friendship House, has closed on a $44.9 million tax-exempt bond financing that
will allow the Friendship Public Charter School to repay existing loans for
building purchases and renovations, expand its Woodridge campus, and upgrade
technology on all four of its campuses. Friendship House has also renewed its
management agreement with Edison through 2008.
The Friendship-Edison partnership began five years ago and has grown to become
the largest charter school in the nation, comprising four school campuses
serving more than 3,000 K-12 students in Washington, D.C. Friendship Public
Charter School, which was founded by Friendship House, a 99-year-old
not-for-profit social service provider, holds a 15-year charter granted by the
D.C. Public Charter School Board.
"We are thrilled with our renewed management agreement with Edison and the
outcome of this transaction," said Donald L. Hense, president & CEO of
Friendship House and chair of Friendship Public Charter School. "Through our
partnership with Edison, we have created the largest charter school in the
nation, and our student achievement results have put us among the top achieving
schools in the entire district in only a few short years."
The placement of the District of Columbia Revenue Bonds is being managed by
Citigroup Global Markets. The bonds are insured by ACA Financial Guaranty
Corporation and are rated "A" by Standard & Poor's. The underlying rating on
the bonds by Standard & Poor's is "BBB."
The proceeds of the bond offering will be used to repay existing debt, including
$17.2 million owed to Edison Schools Inc., to finance facilities improvements,
technology and equipment acquisition and expansion, and to fund reserves and
cover transaction costs.
"This transaction is important to Edison on a number of fronts," said Chris
Whittle, Edison's founder and CEO. "First and foremost, it reaffirms our
charter school strategy of working with strong community partners to establish
independent charter schools that deliver great academic results and are
financially viable. Second, it repays to Edison significant proceeds that
Edison can reinvest in the growth of all of its lines of business. Third, the
investment grade rating reflects the continued maturation of the charter school
debt market and the increasing comfort of municipal bond investors with the
charter school movement."
With this renewal, Edison remains the country's largest manager of charter
schools serving more than 25,000 charter school students across the country. "We
are thrilled to be able to continue our partnership with such a venerable and
dedicated organization as Friendship House-we have learned so much from one
another," said Joe Keeney, president of Edison's Charter School Division. "This
contract renewal gives us the opportunity to keep our Friendship partnership
schools in their rightful place among the finest schools in D.C."
Jeanne Allen, president of the Center for Education Reform, noted the
significance of the Friendship renewal and the bond deal. "The importance of
this partnership and transaction cannot be underestimated. It's a clear vote of
confidence -- from parents and teachers to community leaders and investors --
for public/private partnerships and choice. The Friendship Edison partnership
is working!"
Since opening, Friendship Edison Public Charter Schools have experienced strong
achievement growth and success on standardized test scores. These improvements
in national percentile rank are significantly greater than at other D.C. public
schools. Since opening its doors in 1998, Chamberlain Elementary campus has
increased scores by an average of 38 national percentiles, and Woodridge
Elementary campus has raised its scores by an average of 26 percentiles. Blow
Pierce Junior Academy campus has raised its scores by an average of 21
percentiles since its opening in fall 1999, and Carter Woodson Senior Academy
campus has raised scores by an average of 10 percentiles since opening in fall
2000. Woodson graduated its first high school senior class in June 2003. Both
the graduation and college acceptance rate were significantly higher than the
D.C. public school average.
ABOUT EDISON SCHOOLS
Founded in 1992, Edison partners with school districts, charter boards, and
community groups to raise student achievement through its research-based school
design, aligned assessment systems, interactive professional development,
integrated use of technology and other proven program features. Edison students
are achieving annual academic gains well above national norms. Edison Schools
now serves more than 132,000 public school students in over 20 states through
four different business channels: (1) the management of schools for school
districts, (2) charter schools, (3) summer and after-school programs, and (4)
achievement management solutions for school systems. The Company operates 130
full-year schools and 200 summer schools.
Between 1992 and 1995 and in on-going efforts, Edison's team of leading
educators and scholars has conducted intensive research to develop its school
design and support systems. Edison opened its first four schools in August 1995,
and has grown in every subsequent year. For more information, please visit
http://www.edisonschools.com/.
Any statements in this press release and any other press release issued by
Edison on or about the date hereof about future expectations, plans and
prospects for Edison, including statements containing the words "believes,"
"anticipates," "plans," "expects," "will," and similar expressions, constitute
forward-looking statements within the meaning of The Private Securities
Litigation Reform Act of 1995. Actual results may differ materially from those
indicated by such forward-looking statements as a result of various important
factors, including the risk factors discussed in our most recent quarterly
report filed with the SEC. The forward-looking statements included in this press
release represent Edison's estimates as of November 13, 2003. Edison anticipates
that subsequent events and developments will cause its estimates to change.
While Edison may elect to update these forward-looking statements at some point
in the future, Edison specifically disclaims any obligation to do so. These
forward-looking statements should not be relied upon as representing Edison's
estimates or views as of any date subsequent to November 13, 2003.
DATASOURCE: Edison Schools
CONTACT: Adam Tucker, VP, Communications of Edison Schools,
+1-212-419-1602
Web site: http://www.edisonschools.com/