Laureate Education Announces Special Cash Distribution

About this update from Laureate Education, Inc.

[{"type":"text","content":"MIAMI, Sept. 14, 2022 /PRNewswire/ -- Laureate Education, Inc. (NASDAQ: LAUR) (the \"Company\") today announced that its board of directors approved, pursuant to the previously announced adoption of a plan of partial liquidation (the \"Plan\") related to the distribution of net proceeds from the Company's sale of Walden e-Learning LLC (the \"Sale\"), the payment of a special cash distribution (the \"Distribution\") equal to $0.83 per each share of the Company's Common Stock, par value $0.004 per share, to each holder of record on September 28, 2022. The Distribution is scheduled to be paid on October 12, 2022. Based on the current number of shares outstanding, the aggregate amount of the Distribution is expected to be approximately $137 million.\nThe proceeds being distributed are attributable to the release of $71.7 million of escrowed funds from the Sale plus remaining net proceeds that had yet to be distributed. This is anticipated to be the final distribution pursuant to the Plan.\nEilif Serck-Hanssen, President and Chief Executive Officer, said, \"In addition to delivering on our growth and quality commitments, we continue to prioritize return of capital for our shareholders. We believe that our leading brands, cash accretive business model and strong balance sheet position us well for continued value creation for all our stakeholders, including our shareholders.\"\nSummary of Material U.S. Federal Income Tax Consequences to the Receipt of the Distribution\nThe Distribution will be taxable to holders of Company common stock. In general, except as described in the immediately succeeding paragraph, the Company will treat the Distribution as a partial liquidation for U.S. federal income tax purposes as the Company obtained a private letter ruling from the Internal Revenue Service that, in summary, provides that the Distribution will be treated as a distribution in partial liquidation. As a result, each holder of Company common stock that is not a corporation (for this purpose any stock held by a partnership, estate or trust will be treated as if it were actually held proportionately by its partners or beneficiaries) (a non-corporate shareholder) will be treated as having a portion of their Company common shares redeemed and will recognize gain or loss equal to the difference between the cash received by them in the Distributio...

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