Aspen Education Group

Invested

July 2001

Realized Investment

Aspen Education Group is an industry-leading provider of educational services to youth and their families. Aspen’s educational services, which include wilderness/outdoor programs, residential schools and programs, special education day schools, young adult programs, and weight loss programs, are integrated with Aspen’s strong and effective self-growth program.

The Sprout Group, Frazier Healthcare and management formed Aspen in 1998 to acquire the youth services division of College Health Enterprises as the first step toward a national consolidation program in the education services area. Following an introduction to the business by a senior lender, Caltius Mezzanine worked directly with management for over a year on various financing alternatives while they lined up several acquisitions. Caltius Mezzanine helped finance the company’s acquisition of Excel Academy, which was the eighth acquisition completed since the company was acquired by the Sprout Group and Frazier Healthcare in 1998. Using mezzanine debt rather than equity for this acquisition was significantly less dilutive to the existing shareholders and provided necessary growth capital.

In July 2001, Caltius Mezzanine provided a subordinated debt facility to enable Aspen to further its expansion program. The transaction was structured as senior subordinated notes with warrants for preferred and common stock. Of the total, a portion was drawn initially, with the balance remaining as an acquisition line.

Cerritos, California


“Our mission is to provide educational programs that promote academic and personal growth to youth and their families with the foundation of our success built upon quality, integrity, and dependability. The financing provided by Caltius enables us to continue to expand our facilities as we strive to achieve that mission.”

Elliot Sainer, Chief Executive Officer, Aspen Education Group

aspeneducation.crchealth.com