Higher education provider
said that it signed an agreement with its Chilean partner
to satisfy all remaining earnout obligations related to the acquisition of its Chilean businesses.
Laureate Education agreed to acquire the remaining 20% interest in its Chilean businesses, including a subsidiary in Ecuador. These transactions, which are expected to close within 60 days, will be completed in exchange for a total settlement of $161 million, the Baltimore-based company said.
"This transaction recognizes the tremendous value that has been created since the year 2000 - the time of our initial entry in Chile. Our partners have worked tirelessly with us to build and expand our businesses in Chile and Ecuador. This entailed extensive investment in real estate, student financing, marketing and new program development," the company added.
Laureate Education also announced that it entered into an agreement with a group of banks for a $250 million revolving credit facility, which has an expansion feature of an additional $100 million. This credit facility has a 5-year term and a LIBOR-based interest rate. The company's existing $120 million facility was canceled in conjunction with the closing of the new credit facility.
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