UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13E-3
RULE
13e-3 TRANSACTION STATEMENT
(Pursuant to Section 13(e) of the Securities
Exchange Act of 1934)
(Amendment No. 1)
LAUREATE EDUCATION, INC.
(Name of the Issuer)
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The persons listed on |
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(Name of Person(s) Filing Statements) |
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Common
Stock, par value $.01 per share
(Title of Class
of Securities)
518613104
(CUSIP Number of
Class of Securities)
Robert
W. Zentz, Esq.
Senior Vice President and General Counsel
Laureate Education, Inc.
1001 Fleet Street
Baltimore, Maryland 21202
(410) 843-8043
(Name, Address
and Telephone Number of Person Authorized to Receive Notices and
Communications on Behalf of Person(s) Filing Statement)
Copies to:
R.W.
Smith, Jr., Esq. |
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Robert
B. Robbins, Esq. |
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Jeffrey
R. Patt |
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David
J. Sorkin, Esq. |
This statement is filed in connection with (check the appropriate box):
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a. |
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The filing of solicitation materials or an information statement subject to Regulation 14A, Regulation 14C or Rule 13e-3(c) under the Securities Exchange Act of 1934. |
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b. |
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The filing of a registration statement under the Securities Act of 1933. |
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c. |
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A tender offer. |
o |
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d. |
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None of the above. |
Check the following box if the soliciting materials or information statement referred to in checking box (a) are preliminary copies: x
Check the following box if the filing is a final amendment reporting the results of the transaction: o
Calculation of Filing Fee
Transaction
Valuation* |
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Amount
of Filing Fee** |
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Calculated solely for purposes of determining the filing fee. The transaction value was determined based upon the sum of (a) $60.50 per share of 51,881,859 shares of the Companys Common Stock, (b) $60.50 per share of 166,000 shares of the Companys Common Stock underlying performance share units and (c) $60.50 minus the weighted average exercise price of $24.374 per share underlying options to purchase 5,200,507 shares of the Companys Common Stock, all with an exercise price of less than $60.50. |
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The filing fee, calculated in accordance with Exchange Act Rule 0-11(c)(1), was calculated by multiplying the transaction value by 0.0000307. |
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Check box if any part of the fee is offset as provided by Rule 0-11(a)(2) and identify the filing with which the offsetting fee was previously paid. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. |
Amount Previously Paid: $102,439
Form or Registration No.:
Schedule 14A
Filing Party: Laureate Education, Inc.
Date Filed: March 16, 2007
Schedule I
R. Christopher Hoehn-Saric
Steven M. Taslitz
Eric D. Becker
Wengen Alberta, Limited Partnership
L Curve Sub Inc.
Bregal Europe Co-Investment L.P.
Citigroup Private Equity LP
KKR 2006 Limited
S.A.C. Capital Management, LLC
Snow, Phipps & Guggenheim, LLC
Sterling Capital Partners II, L.P.
INTRODUCTION
This Amendment No. 1 to Rule 13e-3 Transaction Statement on Schedule 13E-3, together with the exhibits hereto (the Transaction Statement), is being filed by (1) Laureate Education, Inc., a Maryland corporation (Laureate or the Company), the issuer of the Companys common stock that is subject to the Rule 13e-3 transaction, (2) Douglas L. Becker, an individual and a director and the Chairman of the Board of Directors and Chief Executive Officer of Laureate, (3) R. Christopher Hoehn-Saric, an individual and a director of Laureate, (4) Steven M. Taslitz, an individual, (5) Eric D. Becker, an individual and brother of Douglas L. Becker, who along with Douglas Becker and Messrs. Hoehn-Saric and Taslitz, is a founding member of Sterling Partners, (6) Sterling Capital Partners II, L.P., a Delaware limited partnership, (7) Wengen Alberta, Limited Partnership, an Alberta limited partnership (Parent), (8) L Curve Sub Inc., a Maryland corporation and a direct subsidiary of Parent (Merger Sub), (9) Bregal Europe Co-Investment L.P., a Scottish limited partnership, (10) Citigroup Private Equity LP, a Delaware limited partnership, (11) KKR 2006 Limited, a Cayman Islands exempted company, (12) S.A.C. Capital Management, LLC, a Delaware limited liability company, and (13) Snow, Phipps & Guggenheim, LLC, a Delaware limited liability company (collectively, the Filing Persons).
Pursuant to the Agreement and Plan of Merger dated as of January 28, 2007 (the Merger Agreement), by and among the Company, Parent and Merger Sub, Merger Sub will merge (the Merger) with and into the Company, the separate corporate existence of Merger Sub will cease and the Company will continue as the surviving corporation. Upon completion of the Merger, each share of the Companys common stock issued and outstanding as of the effective time of the Merger (other than shares of the Companys common stock owned by Parent immediately prior to the effective time of the Merger, including shares acquired by Parent from Douglas L. Becker, Eric D. Becker, Messrs. Hoehn-Saric and Taslitz and certain trusts affiliated with them) will be converted into the right to receive $60.50 in cash. Except as otherwise agreed by Parent and a holder of options to acquire shares of the Companys common stock or of unvested restricted shares, or as otherwise provided in the Merger Agreement, to the extent applicable, outstanding options, unvested restricted shares and performance share units will, as of the effective time of the Merger, be treated as follows:
all outstanding options to acquire shares of the Companys common stock will be canceled and, in exchange for such cancellation, each holder will be entitled to receive from the surviving corporation promptly following the effective time of the Merger a cash payment equal to the number of shares of the Companys common stock underlying the holders option or options multiplied by the amount by which $60.50 exceeds the exercise price for each share of the Companys common stock underlying the option or options, without interest and less any applicable withholding taxes;
each unvested Company restricted share outstanding immediately prior to the effective time of the Merger will vest and become free of restrictions and will be canceled and converted into the right to receive $60.50, without interest and less any applicable withholding taxes, in the Merger; and
the performance share units and, to the extent not previously exercised, options to purchase shares of the Companys common stock held by Mr. Becker, and, to the extent not previously exercised, options to purchase shares of the Companys common stock held by Mr. Hoehn-Saric, are expected to be canceled in exchange for the surviving corporation establishing a new deferred compensation plan for each of Messrs. Becker and Hoehn-Saric, under which plans these two individuals will have the right to receive cash payments in the future, which plans will have an aggregate initial value of approximately $126.7 million, assuming Messrs. Becker and Hoehn-Saric do not exercise any options to purchase shares of the Companys common stock prior to the consummation of the merger.
The Merger Agreement provides that, in connection with the consummation of the Merger, specified unvested options to purchase shares of the Companys common stock and specified unvested Company restricted shares will be canceled without payment therefor and, in lieu of making the payments described above, the surviving corporation will establish a retention bonus award plan, pursuant to which each holder of such canceled option or restricted share will be entitled to receive a cash payment, without interest and less any applicable withholding taxes, equivalent to the amount the holder otherwise would have received for such award promptly following the effective time of the Merger in respect to such canceled options and restricted shares, provided that the holder remains employed by the surviving corporation through the first (or second, for certain employees) anniversary of the effective time of the Merger.
Concurrently with the filing of this Transaction Statement, the Company is filing with the Securities and Exchange Commission a revised preliminary Proxy Statement (the Proxy Statement) under Regulation 14A of the Securities Exchange Act of 1934, as amended (the Exchange Act), relating to the special meeting of the stockholders of the Company at which the stockholders of the Company will consider and vote upon a proposal to approve the Merger and the Merger Agreement. The approval of the Merger and the Merger Agreement requires the affirmative vote of the holders of a majority of the shares of the Companys common stock outstanding as of the close of business on the record date relating to the special meeting of stockholders.
The cross references below are being supplied pursuant to General Instruction G to Schedule 13E-3 and show the location in the Proxy Statement of the information required to be included in response to the items of Schedule 13E-3. The information contained in the Proxy Statement, including all annexes thereto, is incorporated in its entirety herein by this reference, and the responses to each Item in this Transaction Statement are qualified in their entirety by the information contained in the Proxy Statement and the annexes thereto. Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Proxy Statement. All information contained in this Transaction Statement concerning any of the Filing Persons has been provided by such Filing Person and none of the Filing Persons, including the Company, takes responsibility for the accuracy of any information not supplied by such Filing Person.
TABLE OF CONTENTS
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2
Regulation M-A Item 1001
The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Summary Term Sheet
Questions and Answers about the Special Meeting and the Merger
Item 2. Subject Company Information
Regulation M-A Item 1002
(a) Name and Address. The Companys name and the address and telephone number of its principal executive office are as follows:
Laureate Education, Inc.
1001 Fleet Street
Baltimore, Maryland 21202
(410) 843-6100
(b) Securities. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Questions and Answers about the Special Meeting and
the Merger
The Special Meeting Record Date
(c) Trading Market and Price. The information set forth in the Proxy Statement under the caption Important Information About Laureate Market Price and Dividend Data is incorporated herein by reference.
(d) Dividends. The information set forth in the Proxy Statement under the caption Important Information About Laureate Market Price and Dividend Data is incorporated herein by reference.
(e) Prior Public Offerings. None.
(f) Prior Stock Purchases. The information set forth in the Proxy Statement under the caption Important Information About Laureate Prior Stock Purchases is incorporated herein by reference.
Item 3. Identity and Background of Filing Person(s)
Regulation M-A Item 1003
(a) Name and Address. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Summary Term Sheet The Merger and the Merger
Agreement
The Parties to the Merger
Annex E Information Relating to
Laureate Directors and Executive Officers, the Sponsors, the Sterling Founders and certain trusts affiliated with
the Sterling Founders
(b) Business and Background of Entities. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Summary Term Sheet The Merger and the Merger
Agreement
The Parties to the Merger
3
Important Information About Laureate
Annex E Information Relating to
Laureate Directors and Executive Officers, the Sponsors, the Sterling Founders and certain trusts affiliated with
the Sterling Founders
(c) Business and Background of Natural Persons. The information set forth in the Proxy Statement as Annex E Information Relating to Laureate Directors and Executive Officers, the Sponsors, the Sterling Founders and certain trusts affiliated with the Sterling Founders is incorporated herein by reference.
Item 4. Terms of the Transaction
Regulation M-A Item 1004
(a) Material Terms. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Summary Term Sheet
Questions and Answers about the Special Meeting and the Merger
The Special Meeting
Special Factors
The Merger and the Merger Agreement
Annex A Agreement and Plan of Merger
(c) Different Terms. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Summary Term Sheet
Questions and Answers about the Special Meeting and the Merger
Special Factors Certain Effects of the Merger
Special Factors Financing of the Merger
Special Factors Interests of the Companys Directors and Executive Officers
in the Merger
The Merger and the Merger Agreement Treatment of Options, Restricted Shares
and Performance Share Units
(d) Appraisal Rights. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Summary Term Sheet Other Important Considerations
The Special Meeting No Dissenters Rights
The Merger and the Merger Agreement Merger Consideration
No Dissenters Rights
(e) Provisions for Unaffiliated Security Holders. Certain members of senior management have, by reason of their position as such, access to certain corporate files of the Company. There have been no provisions in connection with this transaction to grant unaffiliated security holders access to the corporate files of the Filing Persons or to obtain counsel or appraisal services at the expense of the Filing Persons.
(f) Eligibility for Listing or Trading. Not applicable.
4
Item 5. Past Contacts, Transactions, Negotiations and Agreements
Regulation M-A 1005
(a) Transactions. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Summary Term Sheet
Special Factors Background of the Merger
Special Factors Interests of the Companys Directors and Executive Officers in
the Merger
Special Factors Certain Relationships Between Parent and Laureate
(b) Significant Corporate Events. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Summary Term Sheet
Special Factors Background of the Merger
Special Factors Interests of the Companys Directors and Executive Officers
in the Merger
(c) Negotiations or Contacts. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Summary Term Sheet
Special Factors Background of the Merger
Special Factors Interests of the Companys Directors and Executive Officers
in the Merger
(e) Agreements Involving the Subject Companys Securities. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Summary Term Sheet
Questions and Answers about the Special Meeting and the Merger
The Special Meeting
The Voting Agreement
Special Factors Interests of the Companys Directors and Executive Officers
in the Merger
Annex B Voting Agreement
Citigroup Inc., an affiliate of Citigroup Private Equity LP, and its affiliates are engaged in a wide range of financial services and businesses (including investment management, financing, securities trading, corporate and investment banking and research), which may in the ordinary course of business include providing financial services to the Company.
Item 6. Purposes of the Transaction and Plans or Proposals
Regulation M-A Item 1006
(b) Use of Securities Acquired. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Summary Term Sheet Other Important Considerations
Questions and Answers about the Special Meeting and the Merger
Special Factors Purposes, Reasons and Plans for Laureate after the Merger
Special Factors Certain Effects of the Merger
Special Factors Financing of the Merger
5
Special Factors Interests of the Companys Directors and Executive Officers in the Merger
The Merger and the Merger Agreement The Merger
The Merger and the Merger Agreement Treatment of Options, Restricted Shares
and Performance Share Units
Annex A Agreement and Plan of Merger
(c)(1)-(8) Plans. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Summary Term Sheet Other Important Considerations
Questions and Answers about the Special Meeting and the Merger
Special Factors Background of the Merger
Special Factors Purposes, Reasons and Plans for Laureate after the Merger
Special Factors Certain Effects of the Merger
Special Factors Delisting and Deregistration of the
Companys Common Stock
Special Factors Financing of the Merger
Special Factors Interests of the Companys Directors and Executive Officers
in the Merger
The Merger and the Merger Agreement
Annex A Agreement and Plan of Merger
Item 7. Purposes, Alternatives, Reasons and Effects
Regulation M-A Item 1013
(a) Purposes. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Summary Term Sheet Other Important Considerations
Questions and Answers about the Special Meeting and the Merger
Special Factors Background of the Merger
Special Factors Reasons for the Merger; Recommendation of the Special
Committee and of Our Board of Directors; Fairness of the Merger
Special Factors Purposes and Reasons of the Sterling Founders, certain
affiliated trusts and SCP II
Special Factors Purposes and Reasons of Parent, Merger Sub, and the Sponsors
Special Factors Purposes, Reasons and Plans for Laureate after the Merger
(b) Alternatives. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Special Factors Background of the Merger
Special Factors Reasons for the Merger; Recommendation of the Special
Committee and of Our Board of Directors; Fairness of the Merger
Special Factors Purposes, Reasons and Plans for Laureate after the Merger
Special Factors Effects on the Company if the Merger is Not Consummated
(c) Reasons. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Summary Term Sheet Other Important Considerations
Questions and Answers about the Special Meeting and the Merger
Special Factors Background of the Merger
Special Factors Reasons for the Merger; Recommendation of the Special
Committee and of Our Board of Directors; Fairness of the Merger
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Special Factors Purposes and Reasons of the
Sterling Founders, certain affiliated trusts and SCP II
Special Factors Purposes and Reasons of Parent, Merger Sub, and the Sponsors
Special Factors Opinions of the Special Committees Financial Advisors
Special Factors Purposes, Reasons and Plans for Laureate after the Merger
(d) Effects. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Summary Term Sheet Other Important Considerations
Questions and Answers about the Special Meeting and the Merger
Special Factors Background of the Merger
Special Factors Purposes, Reasons and Plans for Laureate after the Merger
Special Factors Certain Effects of the Merger
Special Factors Effects on the Company if the Merger is Not Consummated
Special Factors Material U.S. Federal Income Tax Consequences of the Merger
to Our Stockholders
The Merger and the Merger Agreement
Annex A Agreement and Plan of Merger
Item 8. Fairness of the Transaction
Regulation M-A 1014
(a) Fairness. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Summary Term Sheet Other Important Considerations
Questions and Answers about the Special Meeting and the Merger
Special Factors Background of the Merger
Special Factors Reasons for the Merger; Recommendation of the Special
Committee and of Our Board of Directors; Fairness of the Merger
Special Factors Position of the Sterling Founders, certain affiliated trusts
and SCP II as to Fairness
Special Factors Position of Parent, Merger Sub and the Sponsors as to
Fairness
Special Factors Opinions of the Special Committees Financial Advisors
Annex C Opinion of Morgan Stanley & Co. Incorporated
Annex D Opinion of Merrill Lynch, Pierce, Fenner and Smith Incorporated
(b) Factors Considered in Determining Fairness. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Summary Term Sheet Other Important Considerations
Questions and Answers about the Special Meeting and the Merger
Special Factors Background of the Merger
Special Factors Reasons for the Merger; Recommendation of the Special
Committee and of Our Board of Directors; Fairness of the Merger
Special Factors Opinions of the Special Committees Financial Advisors
Special Factors Purposes and Reasons of the Sterling Founders, certain
affiliated trusts and SCP II
Special Factors Purposes and Reasons of Parent, Merger Sub, and the Sponsors
Special Factors Purposes, Reasons and Plans for Laureate after the Merger
Special Factors Interests of the Companys Directors and Executive Officers
in the Merger
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Annex C Opinion of Morgan Stanley & Co.
Incorporated
Annex D Opinion of Merrill Lynch, Pierce, Fenner and Smith Incorporated
(c) Approval of Security Holders. The transaction is not structured so that the approval of at least a majority of unaffiliated security holders is required. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Summary Term Sheet Other Important Considerations
Questions and Answers about the Special Meeting and the Merger
The Special Meeting Voting Rights; Quorum; Vote
Required for Approval
Special Factors Reasons for the Merger; Recommendation of the Special
Committee and Our Board of Directors; Fairness of the Merger
The Merger and the Merger Agreement
(d) Unaffiliated Representative. An unaffiliated representative was not retained to act solely on behalf of unaffiliated security holders for purposes of negotiating the terms of the transaction or preparing a report concerning the fairness of the transaction. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Summary Term Sheet Other Important Considerations
Special Factors Background of the Merger
Special Factors Reasons for the Merger; Recommendation of the Special
Committee and of Our Board of Directors; Fairness of the Merger
Special Factors Position of the Sterling Founders, certain affiliated trusts
and SCP II as to Fairness
Special Factors Position of Parent, Merger Sub and the Sponsors as to
Fairness
Special Factors Purposes, Reasons and Plans for Laureate after the Merger
Special Factors Opinions of the Special Committees Financial Advisors
Annex C Opinion of Morgan Stanley & Co. Incorporated
Annex D Opinion of Merrill Lynch, Pierce, Fenner and Smith Incorporated
(e) Approval of Directors. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Summary Term
Sheet Other Important Considerations
Questions and Answers about the Special Meeting and the Merger
Special Factors Background of the Merger
Special Factors Reasons for the Merger; Recommendation of the Special
Committee and of Our Board of Directors; Fairness of the Merger
Special Factors Purposes, Reasons and Plans for Laureate after the Merger
Special Factors Interests of the Companys Directors and Executive Officers
in the Merger
(f) Other Offers. None.
Item 9. Reports, Opinions, Appraisals and Certain Negotiations
Regulation M-A Item 1015
(a) Report, Opinion or Appraisal. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Summary Term Sheet Other Important Considerations
Special Factors Background of the Merger
Special Factors Reasons for the Merger; Recommendation of the Special
Committee and of Our Board of Directors; Fairness of the Merger
Special Factors Purposes, Reasons and Plans for Laureate after the Merger
8
Special Factors Opinions of the Special Committees
Financial Advisors
The Merger and the Merger Agreement Representations and Warranties
Important Information About Laureate Projected Financial Information
Annex C Opinion of Morgan Stanley & Co. Incorporated
Annex D Opinion of Merrill Lynch, Pierce, Fenner and Smith Incorporated
(b) Preparer and Summary of the Report, Opinion or Appraisal. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Summary Term Sheet Other Important Considerations
Special Factors Background of the Merger
Special Factors Reasons for the Merger; Recommendation of the Special Committee
and of Our Board of Directors; Fairness of the Merger
Special Factors Purposes, Reasons and Plans for Laureate after the Merger
Special Factors Opinions of the Special Committees Financial Advisors
The Merger and the Merger Agreement Representations and Warranties
Annex C Opinion of Morgan Stanley & Co.
Incorporated
Annex D Opinion of Merrill Lynch, Pierce, Fenner and Smith Incorporated
(c) Availability of Documents. The reports, opinions or appraisals referenced in this Item 9 will be made available for inspection and copying at the principal executive offices of the Company during its regular business hours by any interested holder of shares of the Companys common stock or representative of the interested holder who has been so designated in writing.
Item 10. Source and Amounts of Funds or Other Consideration
Regulation M-A Item 1007
(a) Source of Funds. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Summary Term Sheet
Other Important Considerations
Special Factors Background of the Merger
Special Factors Financing of the Merger
Special Factors Fees and Expenses of the Merger
The Merger and the Merger Agreement
Annex A Agreement and Plan of Merger
(b) Conditions. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Summary Term Sheet The Merger and the Merger
Agreement
Questions and Answers about the Special Meeting and the Merger
Special Factors Background of the Merger
Special Factors Certain Effects of the Merger
Special Factors Effects on the Company if the Merger is Not Consummated
Special Factors Financing of the Merger
The Merger and the Merger Agreement
Annex A Agreement and Plan of Merger
(c) Expenses. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Summary Term Sheet The Merger and the Merger
Agreement
Special Factors Background of the Merger
Special Factors Financing of the Merger
Special Factors Fees and Expenses of the Merger
9
The Merger and the Merger Agreement Termination
Fees
Annex A Agreement and Plan of Merger
(d) Borrowed Funds. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Summary Term Sheet Other Important Considerations
Special Factors Background of the Merger
Special Factors Financing of the Merger
The Merger and the Merger Agreement Marketing Period
The Merger and the Merger Agreement Termination Fees
Annex A Agreement and Plan of Merger
Item 11. Interest in Securities of the Subject Company
Regulation M-A Item 1008
(a) Securities Ownership. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Special Factors Interests of the Companys
Directors and Executive Officers in the Merger
Important Information About Laureate Security Ownership of Certain
Beneficial Owners and Management
(b) Securities Transactions. Annex A hereto and the information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Important Information About Laureate Security
Ownership of Certain Beneficial Owners and Management
Important Information About Laureate Prior Stock Purchases
Item 12. The Solicitation or Recommendation
Regulation M-A Item 1012
(d) Intent to Tender or Vote in a Going-Private Transaction. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Summary Term Sheet Other Important Considerations
Questions and Answers about the Special Meeting and the Merger
The Special Meeting Voting Rights; Quorum; Vote Required for Approval
Special Factors Reasons for the Merger; Recommendation of the Special
Committee and of Our Board of Directors; Fairness of the Merger
Special Factors Purposes and Reasons of the Sterling Founders, certain
affiliated trusts and SCP II
Special Factors Purposes and Reasons of Parent, Merger Sub, and the Sponsors
Special Factors Purposes, Reasons and Plans for Laureate after the Merger
Special Factors Interests of the Companys Directors and Executive Officers
in the Merger
The Voting Agreement
Annex B Voting Agreement
10
(e) Recommendations of Others. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Summary Term Sheet Other Important Considerations
Questions and Answers about the Special Meeting and the Merger
Special Factors Background of the Merger
Special Factors Reasons for the Merger; Recommendation of the Special
Committee and of Our Board of Directors; Fairness of the Merger
Special Factors Purposes and Reasons of the Sterling Founders, certain
affiliated trusts and SCP II
Special Factors Purposes and Reasons of Parent, Merger Sub, and the Sponsors
Special Factors Purposes, Reasons and Plans for Laureate after the Merger
Item 13. Financial Information
Regulation M-A Item 1010
(a) Financial Statements. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Important Information About Laureate Historical
Selected Consolidated Financial Data
Important Information About Laureate Ratio of Earnings to Fixed Charges
Important Information About Laureate Book Value Per Share
Where You Can Find More Information
(b) Pro Forma Information. Not applicable.
Item 14. Persons/Assets, Retained, Employed, Compensated or Used
Regulation M-A Item 1009
(a) Solicitations or Recommendations. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Summary Term Sheet
Questions and Answers about the Special Meeting and the Merger
The Special Meeting Solicitation of Proxies
Special Factors Background of the Merger
Special Factors Reasons for the Merger; Recommendation of the Special
Committee and of Our Board of Directors; Fairness of the Merger
Special Factors Interests of the Companys Directors and Executive Officers
in the Merger
Special Factors Fees and Expenses of the Merger
(b) Employees and Corporate Assets. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:
Summary Term Sheet
Questions and Answers about the Special Meeting and the Merger
Special Factors Background of the Merger
Special Factors Reasons for the Merger; Recommendation of the Special
Committee and of Our Board of Directors; Fairness of the Merger
Special Factors Interests of the Companys Directors and Executive Officers
in the Merger
11
Item 15. Additional Information
Regulation M-A Item 1011
(b) Other Material Information. The information contained in the Proxy Statement, including all annexes thereto, is incorporated herein by reference.
Regulation M-A Item 1016
(a)(1) |
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Letter to Employees of Laureate Education, Inc., dated January 28, 2007, incorporated herein by reference to the Schedule 14A filed by Laureate Education, Inc. with the Securities and Exchange Commission on January 29, 2007 |
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(a)(2) |
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Letter to Stockholders of Laureate Education, Inc., incorporated herein by reference to the Proxy Statement on Schedule 14A filed by Laureate Education, Inc. with the Securities and Exchange Commission on March 16, 2007 (as amended, the Proxy Statement) |
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(a)(3) |
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Notice of Special Meeting of Stockholders of Laureate Education, Inc., incorporated herein by reference to the Proxy Statement |
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(a)(4) |
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Proxy Statement of Laureate Education, Inc., incorporated herein by reference to the Proxy Statement |
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(b)(1) |
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Debt Commitment Letter, dated as of January 28, 2007, among L Curve Sub Inc. and Goldman Sachs Credit Partners L.P. and Citigroup Global Markets Inc.* |
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(c)(1) |
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Fairness Opinion of Morgan Stanley & Co. Incorporated, dated January 28, 2007, incorporated herein by reference to the Proxy Statement |
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(c)(2) |
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Fairness Opinion of Merrill Lynch, Pierce, Fenner & Smith Incorporated, dated as of January 28, 2007, incorporated herein by reference to the Proxy Statement |
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(c)(3) |
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Presentation of Morgan Stanley & Co. Incorporated to the Special Committee of the Board of Directors of Laureate Education, Inc., dated January 28, 2007* |
|
|
|
(c)(4) |
|
Presentation of Merrill Lynch, Pierce, Fenner & Smith Incorporated to the Special Committee of the Board of Directors of Laureate Education, Inc., dated January 28, 2007* |
|
|
|
(d)(1) |
|
Agreement and Plan of Merger, dated January 28, 2007, by and among Laureate Education, Inc., Wengen Alberta, Limited Partnership, and L Curve Sub Inc., incorporated herein by reference to the Proxy Statement |
|
|
|
(d)(2) |
|
Rollover Letter, dated January 28, 2007, between Douglas L. Becker and Wengen Alberta, Limited Partnership* |
|
|
|
(d)(3) |
|
Interim Investors Agreement, dated January 28, 2007, by and among Douglas L. Becker, Wengen Alberta, Limited Partnership and the parties listed on the signature pages thereto* |
|
|
|
(d)(4) |
|
Voting Agreement, dated January 28, 2007, by and among Wengen Alberta, Limited Partnership, Douglas Becker, Steven Taslitz, The Irrevocable BBHT II IDGT and Irrevocable Grantor Retained Annuity Trust No. 11, and, solely for purposes of Section 5.2 thereof, Laureate Education, Inc., incorporated herein by reference to the Proxy Statement |
12
|
|
|
(d)(5) |
|
Rollover Letter, dated January 28, 2007, between The Irrevocable BBHT II IDGT and Wengen Alberta, Limited Partnership* |
|
|
|
(d)(6) |
|
Rollover Letter, dated January 28, 2007, between Irrevocable Grantor Retained Annuity Trust No. 11 and Wengen Alberta, Limited Partnership* |
|
|
|
(d)(7) |
|
Rollover Letter, dated January 28, 2007, between KJT Gift Trust and Wengen Alberta, Limited Partnership* |
|
|
|
(d)(8) |
|
Rollover Letter, dated January 28, 2007, between Steven Taslitz and Wengen Alberta, Limited Partnership* |
|
|
|
(d)(9) |
|
Commitment letter dated March 13, 2007, among R. Christopher Hoehn-Saric, Eric Becker, Jill Becker and Wengen Alberta, Limited Partnership* |
|
|
|
(e) |
|
None |
|
|
|
(f) |
|
None |
|
|
|
(g) |
|
None |
* Previously filed on March 16, 2007
13
After due inquiry and to the best of their knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete and correct.
Dated April 16, 2007
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LAUREATE EDUCATION, INC. |
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By: |
/s/ Rosemarie Mecca |
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Name: |
Rosemarie Mecca |
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Title: |
Executive Vice President and Chief Financial Officer |
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DOUGLAS L. BECKER |
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/s/ Douglas L. Becker |
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R. CHRISTOPHER HOEHN-SARIC |
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/s/ R. Christopher Hoehn-Saric |
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STEVEN M. TASLITZ |
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/s/ Steven M. Taslitz |
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ERIC D. BECKER |
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/s/ Eric D. Becker |
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14
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BREGAL EUROPE CO-INVESTMENT L.P. |
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By: |
Bregal General Partner Jersey Limited, its general partner |
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By: |
/s/ Paul A. Bradshaw |
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Name: |
Paul A. Bradshaw |
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Title: |
Director |
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CITIGROUP PRIVATE EQUITY LP |
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By: |
/s/ Todd E. Benson |
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Name: |
Todd E. Benson |
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Title: |
Vice President |
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KKR 2006 LIMITED |
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By: |
/s/ Henry R. Kravis |
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Name: |
Henry R. Kravis |
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Title: |
Director |
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L CURVE SUB, INC. |
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By: |
/s/ Brian F. Carroll |
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Name: |
Brian F. Carroll |
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Title: |
Vice President & Chief Operating Officer |
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15
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S.A.C. CAPITAL MANAGEMENT, LLC |
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By: |
/s/ Peter Nussbaum |
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Name: |
Peter Nussbaum |
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Title: |
Authorized Signatory |
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Snow, Phipps & Guggenheim, LLC |
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By: |
/s/ Ian K. Snow |
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Name: |
Ian K. Snow |
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Title: |
Authorized Signatory |
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STERLING CAPITAL PARTNERS II, L.P. |
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By: |
SC Partners II, L.P., its general partner |
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By: |
Sterling Capital Partners II, LLC, its general partner |
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By: |
/s/ Steven M. Taslitz |
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|
Name: |
Steven M. Taslitz |
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Title: |
Senior Managing Director |
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16
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WENGEN ALBERTA, LIMITED PARTNERSHIP |
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By: |
Wengen Investments Limited, its General Partner |
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By: |
/s/ Brian F. Carroll |
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Name: |
Brian F. Carroll |
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Title: |
Director |
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17
The following is a list of transactions in shares of the Companys common stock, which to the best knowledge of Citigroup Private Equity LP, have been effected during the period commencing February 11, 2007 and ending April 12, 2007 (excluding the transactions that may have been effected for managed accounts with funds provided by third party customers) in the ordinary course of business. Citigroup Global Markets Inc., a wholly owned subsidiary of Citigroup Inc., and an affiliate of Citigroup Private Equity LP, engaged in open market transactions which are summarized below to report (i) the total amount of shares that were the subject of transactions effected on each day and (ii) the lowest and highest price per share at which the transactions were effected:
|
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|
|
|
|
|
|
Buy (B) / |
|
||
Description of Security |
|
Date |
|
Quantity |
|
Low |
|
High |
|
Sell (S) |
|
||
Common Stock |
|
2/12/2007 |
|
443 |
|
$ |
59.54 |
|
$ |
59.62 |
|
B |
|
Common Stock |
|
2/12/2007 |
|
261 |
|
59.51 |
|
59.61 |
|
S |
|
||
Common Stock |
|
2/13/2007 |
|
17,083 |
|
59.46 |
|
59.71 |
|
B |
|
||
Common Stock |
|
2/13/2007 |
|
34,057 |
|
59.48 |
|
59.71 |
|
S |
|
||
Common Stock |
|
2/14/2007 |
|
56,688 |
|
59.50 |
|
59.63 |
|
B |
|
||
Common Stock |
|
2/14/2007 |
|
100,638 |
|
59.50 |
|
59.64 |
|
S |
|
||
Common Stock |
|
2/15/2007 |
|
44,101 |
|
59.74 |
|
59.80 |
|
B |
|
||
Common Stock |
|
2/15/2007 |
|
6,479 |
|
59.69 |
|
59.81 |
|
S |
|
||
Common Stock |
|
2/16/2007 |
|
15,750 |
|
59.82 |
|
59.99 |
|
B |
|
||
Common Stock |
|
2/16/2007 |
|
7,725 |
|
59.81 |
|
59.92 |
|
S |
|
||
Common Stock |
|
2/20/2007 |
|
37,085 |
|
59.55 |
|
59.58 |
|
B |
|
||
Common Stock |
|
2/20/2007 |
|
23,470 |
|
59.55 |
|
59.78 |
|
S |
|
||
Common Stock |
|
2/21/2007 |
|
1,488 |
|
59.40 |
|
59.68 |
|
B |
|
||
Common Stock |
|
2/21/2007 |
|
3,635 |
|
59.45 |
|
59.59 |
|
S |
|
||
Common Stock |
|
2/22/2007 |
|
2,924 |
|
59.81 |
|
60.43 |
|
B |
|
||
Common Stock |
|
2/22/2007 |
|
759 |
|
59.70 |
|
60.43 |
|
S |
|
||
Common Stock |
|
2/23/2007 |
|
3,919 |
|
60.24 |
|
60.30 |
|
B |
|
||
Common Stock |
|
2/23/2007 |
|
7,515 |
|
60.23 |
|
60.30 |
|
S |
|
||
Common Stock |
|
2/26/2007 |
|
564 |
|
60.36 |
|
60.40 |
|
B |
|
||
Common Stock |
|
2/26/2007 |
|
5,511 |
|
60.13 |
|
60.43 |
|
S |
|
||
Common Stock |
|
2/27/2007 |
|
20,306 |
|
59.60 |
|
60.40 |
|
B |
|
||
Common Stock |
|
2/27/2007 |
|
3,802 |
|
59.59 |
|
60.40 |
|
S |
|
||
Common Stock |
|
2/28/2007 |
|
92,332 |
|
59.65 |
|
59.95 |
|
B |
|
||
Common Stock |
|
2/28/2007 |
|
74,986 |
|
59.56 |
|
59.96 |
|
S |
|
||
Common Stock |
|
3/1/2007 |
|
8,964 |
|
59.28 |
|
59.56 |
|
B |
|
||
Common Stock |
|
3/1/2007 |
|
28,978 |
|
59.28 |
|
59.55 |
|
S |
|
||
Common Stock |
|
3/2/2007 |
|
4,488 |
|
59.41 |
|
60.29 |
|
B |
|
||
Common Stock |
|
3/2/2007 |
|
3,868 |
|
59.41 |
|
60.39 |
|
S |
|
||
Common Stock |
|
3/5/2007 |
|
34,161 |
|
59.73 |
|
60.00 |
|
B |
|
||
Common Stock |
|
3/5/2007 |
|
30,220 |
|
59.75 |
|
60.05 |
|
S |
|
||
Common Stock |
|
3/6/2007 |
|
2,109 |
|
59.95 |
|
60.01 |
|
B |
|
||
Common Stock |
|
3/6/2007 |
|
3,391 |
|
59.87 |
|
60.03 |
|
S |
|
||
Common Stock |
|
3/7/2007 |
|
322 |
|
59.68 |
|
59.99 |
|
B |
|
||
Common Stock |
|
3/7/2007 |
|
7,408 |
|
59.68 |
|
60.04 |
|
S |
|
||
Common Stock |
|
3/8/2007 |
|
1,998 |
|
59.66 |
|
59.74 |
|
B |
|
||
Common Stock |
|
3/8/2007 |
|
2,159 |
|
59.63 |
|
59.74 |
|
S |
|
||
Common Stock |
|
3/9/2007 |
|
14,338 |
|
59.88 |
|
59.98 |
|
B |
|
||
Common Stock |
|
3/9/2007 |
|
14,635 |
|
59.73 |
|
60.10 |
|
S |
|
||
Common Stock |
|
3/12/2007 |
|
619 |
|
59.56 |
|
59.65 |
|
B |
|
||
Common Stock |
|
3/12/2007 |
|
2,667 |
|
59.58 |
|
59.58 |
|
S |
|
||
Common Stock |
|
3/13/2007 |
|
405 |
|
59.54 |
|
59.56 |
|
B |
|
||
Common Stock |
|
3/13/2007 |
|
1,195 |
|
59.51 |
|
59.70 |
|
S |
|
||
Common Stock |
|
3/14/2007 |
|
1,728 |
|
59.25 |
|
59.28 |
|
B |
|
||
Common Stock |
|
3/14/2007 |
|
NA |
|
NA |
|
NA |
|
S |
|
||
Common Stock |
|
3/15/2007 |
|
6,396 |
|
59.11 |
|
59.28 |
|
B |
|
||
Common Stock |
|
3/15/2007 |
|
28,355 |
|
59.02 |
|
59.25 |
|
S |
|
||
Common Stock |
|
3/16/2007 |
|
1,030 |
|
59.08 |
|
59.19 |
|
B |
|
||
Common Stock |
|
3/16/2007 |
|
5,211 |
|
59.00 |
|
59.12 |
|
S |
|
||
Common Stock |
|
3/19/2007 |
|
431 |
|
58.02 |
|
59.02 |
|
B |
|
||
Common Stock |
|
3/19/2007 |
|
3,139 |
|
58.50 |
|
59.14 |
|
S |
|
||
Common Stock |
|
3/20/2007 |
|
3,241 |
|
58.49 |
|
58.70 |
|
B |
|
||
Common Stock |
|
3/20/2007 |
|
10,772 |
|
58.49 |
|
58.70 |
|
S |
|
||
Common Stock |
|
03/21/2007 |
|
1,404 |
|
|
58.60 |
|
|
58.64 |
|
B |
|
Common Stock |
|
03/21/2007 |
|
2,053 |
|
58.57 |
|
58.65 |
|
S |
|
||
Common Stock |
|
03/22/2007 |
|
861 |
|
58.78 |
|
58.95 |
|
B |
|
||
Common Stock |
|
03/22/2007 |
|
890 |
|
58.79 |
|
58.92 |
|
S |
|
||
Common Stock |
|
03/23/2007 |
|
591 |
|
58.90 |
|
58.95 |
|
B |
|
||
Common Stock |
|
03/23/2007 |
|
1,525 |
|
58.91 |
|
58.93 |
|
S |
|
||
Common Stock |
|
03/26/2007 |
|
874 |
|
58.83 |
|
59.01 |
|
B |
|
||
Common Stock |
|
03/26/2007 |
|
1,822 |
|
58.83 |
|
58.92 |
|
S |
|
||
Common Stock |
|
03/27/2007 |
|
1,800 |
|
58.76 |
|
58.79 |
|
B |
|
||
Common Stock |
|
03/27/2007 |
|
12,560 |
|
58.76 |
|
58.79 |
|
S |
|
||
Common Stock |
|
03/28/2007 |
|
1,194 |
|
58.84 |
|
58.84 |
|
B |
|
||
Common Stock |
|
03/28/2007 |
|
75 |
|
58.79 |
|
58.86 |
|
S |
|
||
Common Stock |
|
03/29/2007 |
|
1,655 |
|
58.87 |
|
58.92 |
|
B |
|
||
Common Stock |
|
03/29/2007 |
|
290 |
|
58.85 |
|
58.94 |
|
S |
|
||
Common Stock |
|
03/30/2007 |
|
1 |
|
58.91 |
|
58.91 |
|
B |
|
||
Common Stock |
|
03/30/2007 |
|
462 |
|
58.84 |
|
59.00 |
|
S |
|
||
Common Stock |
|
04/02/2007 |
|
3,011 |
|
58.97 |
|
59.06 |
|
B |
|
||
Common Stock |
|
04/02/2007 |
|
1,053 |
|
58.96 |
|
59.06 |
|
S |
|
||
Common Stock |
|
04/03/2007 |
|
1,207 |
|
58.91 |
|
59.04 |
|
B |
|
||
Common Stock |
|
04/03/2007 |
|
3,516 |
|
58.97 |
|
59.00 |
|
S |
|
||
Common Stock |
|
04/04/2007 |
|
72,638 |
|
58.95 |
|
59.08 |
|
B |
|
||
Common Stock |
|
04/04/2007 |
|
1,546 |
|
59.00 |
|
59.08 |
|
S |
|
||
Common Stock |
|
04/05/2007 |
|
1,591 |
|
59.00 |
|
59.08 |
|
B |
|
||
Common Stock |
|
04/09/2007 |
|
8,769 |
|
59.01 |
|
59.11 |
|
S |
|
||
Common Stock |
|
04/10/2007 |
|
65 |
|
59.01 |
|
59.01 |
|
B |
|
||
Common Stock |
|
04/10/2007 |
|
7,880 |
|
59.00 |
|
59.02 |
|
S |
|
||
Common Stock |
|
04/11/2007 |
|
5,617 |
|
58.97 |
|
59.08 |
|
B |
|
||
Common Stock |
|
04/11/2007 |
|
17,415 |
|
58.96 |
|
59.08 |
|
S |
|
||
Common Stock |
|
04/12/2007 |
|
1,041 |
|
59.06 |
|
59.08 |
|
B |
|
||
Common Stock |
|
04/12/2007 |
|
16,672 |
|
59.01 |
|
59.08 |
|
S |
|
18
(a)(1) |
|
Letter to Employees of Laureate Education, Inc., dated January 28, 2007, incorporated herein by reference to the Schedule 14A filed by Laureate Education, Inc. with the Securities and Exchange Commission on January 29, 2007 |
|
|
|
(a)(2) |
|
Letter to Stockholders of Laureate Education, Inc., incorporated herein by reference to the Proxy Statement on Schedule 14A filed by Laureate Inc. with the Securities and Exchange Commission on March 16, 2007 (as amended, the Proxy Statement) |
|
|
|
(a)(3) |
|
Notice of Special Meeting of Stockholders of Laureate Education, Inc., incorporated herein by reference to the Proxy Statement |
|
|
|
(a)(4) |
|
Proxy Statement of Laureate Education, Inc., incorporated herein by reference to the Proxy Statement |
|
|
|
(b)(1) |
|
Debt Commitment Letter, dated as of January 28, 2007, among L Curve Sub Inc. and Goldman Sachs Credit Partners L.P. and Citigroup Global Markets Inc.* |
|
|
|
(c)(1) |
|
Fairness Opinion of Morgan Stanley & Co. Incorporated, dated January 28, 2007, incorporated herein by reference to the Proxy Statement |
|
|
|
(c)(2) |
|
Fairness Opinion of Merrill Lynch, Pierce, Fenner & Smith Incorporated, dated as of January 28, 2007, incorporated herein by reference to the Proxy Statement |
|
|
|
(c)(3) |
|
Presentation of Morgan Stanley & Co. Incorporated to the Special Committee of the Board of Directors of Laureate Education, Inc., dated January 28, 2007* |
|
|
|
(c)(4) |
|
Presentation of Merrill Lynch, Pierce, Fenner & Smith Incorporated to the Special Committee of the Board of Directors of Laureate Education, Inc., dated January 28, 2007* |
|
|
|
(d)(1) |
|
Agreement and Plan of Merger, dated January 28, 2007, by and among Laureate Education, Inc., Wengen Alberta, Limited Partnership, an Alberta limited partnership and L Curve Sub Inc., incorporated herein by reference to the Proxy Statement |
|
|
|
(d)(2) |
|
Rollover Letter, dated January 28, 2007, between Douglas L. Becker and Wengen Alberta, Limited Partnership* |
|
|
|
(d)(3) |
|
Interim Investors Agreement, dated January 28, 2007, by and among Douglas L. Becker, Wengen Alberta, Limited Partnership and the parties listed on the signature pages thereto* |
|
|
|
(d)(4) |
|
Voting Agreement, dated January 28, 2007, by and among Wengen Alberta, Limited Partnership, Douglas Becker, Steven Taslitz, The Irrevocable BBHT II IDGT and Irrevocable Grantor Retained Annuity Trust No. 11, and, solely for purposes of Section 5.2 thereof, Laureate Education, Inc., incorporated herein by reference to the Proxy Statement |
|
|
|
(d)(5) |
|
Rollover Letter, dated January 28, 2007, between The Irrevocable BBHT II IDGT and Wengen Alberta, Limited Partnership* |
|
|
|
(d)(6) |
|
Rollover Letter, dated January 28, 2007, between Irrevocable Grantor Retained Annuity Trust No. 11 and Wengen Alberta, Limited Partnership* |
|
|
|
(d)(7) |
|
Rollover Letter, dated January 28, 2007, between KJT Gift Trust and Wengen Alberta, Limited Partnership* |
19
|
|
|
(d)(8) |
|
Rollover Letter, dated January 28, 2007, between Steven Taslitz and Wengen Alberta, Limited Partnership* |
|
|
|
(d)(9) |
|
Commitment letter dated March 13, 2007, among R. Christopher Hoehn-Saric, Eric Becker, Jill Becker and Wengen Alberta, Limited Partnership* |
|
|
|
(e) |
|
None |
|
|
|
(f) |
|
None |
|
|
|
(g) |
|
None |
* Previously filed on March 16, 2007
20