Corinthian Colleges

Summary

Lender Advisor

Santa Ana, CA

Corinthian Colleges, Inc. (“CCI”) operates as a post-secondary education company and offers diploma programs and associate’s, bachelor’s and master’s degrees at ground campuses and online. As of FYE 2012, the CCI had $1.6 Billion in revenue, 90,000 students, and 116 ground schools operating under 3 brand names.

CMA professionals were retained by the counsel to the Agent to the lender group to act as its financial advisor. CMA’s role included the review and analysis of business plan to restore a positive Composite Score rating. We reviewed the Composite Score calculations for FY2011-FY2013 and correspondence with the Department of Education (“ED”) to assess the risk of a regulatory violation.

CMA examined the company’s working capital needs and vetted requests for revolver draws and provided an enterprise valuation for the Agent.

Engagement Highlights

For FY2011, the Department of Education disagreed with CCI’s Composite Score calculation. During the lengthy appeal process, CCI operated under a Standstill Agreement with the lender group.
Provided a detailed review of the Composite Score components and calculations for 2011, 2012, and estimated 2013 and explained the risks of a score below 1.0.
Assessed the potential impact of ED implementing Heightened Cash Monitoring.
Reviewed the Company’s FY2014 budget, identified risks and opportunities and advised the lender group on signs of deterioration in the business and risks to the plan.
Reviewed 13-week cash forecasts and worked closely with management to identify the working capital needs of the business, revolver draws and timing of repayment.
Provided weekly variance reports with detailed explanations on timing and permanent variances.
Our team also reviewed and assessed the private student loan financing program and its eligibility for “10 Money.”

Corinthian Colleges

Summary

Lender Advisor

Engagement Highlights

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