Thread regarding Education Management Corporation layoffs

Moody's downgrades EDMC to default rating

Pittsburgh Business Times:

Education Management Corp.'s debt effectively has been declared in default by Moody's Investor's Service (NYSE: MCO) following the for-profit education provider's recent debt restructuring.

On Jan. 5, EDMC said it canceled in excess of $1.3 billion of its outstanding debt in exchange for the issuance of two first lien senior secured term loans with the aggregate principal amount of $400 million. The loans are due July 2, 2020.

In the wake of the debt-for-equity swap, Moody's downgraded its probability of default rating on EDMC (OTCMKTS: EDMC) debt to D-PD from Caa3-PD.

In a statement, Moody's said the "distressed exchange qualifies as a default." This means that the issuer has failed to meet debt service obligations outlined in its original debt agreement.

EDMC didn't immediately respond to requests for comment.

| 1070 views | | 2 replies (last )
Post ID: @OP+zrmpQIY

2 replies (most recent on top)

here here Moody but like others did not see it until too late. Learn to live another day means do not repeat history such as the fall of the berlin wall, 2008 housing bubble, apollo, edmc etc etc

Post ID: @4fL7+zrmpQIY

Checks in the mail. THE MANAGEMENT.

Post ID: @1UTv+zrmpQIY

Post a reply