Case Studies

Corinthian Colleges, Inc. (NASDAQ: COCO)

Company:

Corinthian Colleges, Inc. is now one of the largest for-profit post secondary education companies in North America, operating over 100 schools and serving over 85,000 students in diverse career-oriented programs

Situation:

Due to our reputation as an investor in the industry, Primus was approached as a potential buyer of the entire for-profit post secondary division of National Education Corporation

Primus’ Role:

• Through due diligence, determined that a purchase of the entire portfolio was not viable, and instead backed management to purchase 16 of the best performing schools
  
• Helped form a plan to minimize the impact of losing federal student loans and grants at seven schools
• Played an active role in completing due diligence and raising financing to complete a large acquisition that tripled the size of business
• Advised the company through the IPO process and a secondary share offering

Company Performance:

Corinthian grew revenue from $32 million to $511 million and EBITDA from $4 million to $117 million during Primus’ holding period

The Outcome:

Primus and management maximized value by pursuing an initial public offering for Corinthian. Primus generated liquidity through the IPO, a subsequent secondary offering, and market sales of its shares