January 6, 2010 (FinancialWire) — Corinthian Colleges, Inc. (NASDAQ: COCO) has completed the acquisition of Heald Capital LLC, the parent company of Heald College.

San Francisco, California-based Heald is a regionally accredited institution that has offered career-focused academic programs since 1863. Heald operates 11 campuses and had approximately 12,900 students as of December 31, 2009.

Under the terms of the acquisition, Corinthian paid $395 million in exchange for all outstanding membership interests of Heald Capital LLC, including the assumption of approximately $23.4 million in debt related to a Heald subsidiary. Corinthian also paid an estimated working capital adjustment of $22.2 million that is subject to revision once the closing balance sheet is finalized.

By virtue of Heald’s limited liability ownership structure, Corinthian will receive a tax “step up” in the assets of Heald Capital LLC and its subsidiaries that is expected to provide substantial future tax benefits to Corinthian. According to Corinthian, assuming a discount rate of 8% and an effective tax rate of 40%, these benefits have a net present value to Corinthian of approximately $70 million, implying an effective net purchase price of $325 million, or 8.5 times Heald’s projected fiscal 2009 adjusted EBITDA.

Corinthian said it financed the acquisition through a combination of cash and debt, including borrowings under its $280 million credit facility and available cash.

California-based Corinthian Colleges offers diploma programs and associate, bachelor, and master’s degrees in a range of occupational areas, including healthcare, business, criminal justice, transportation technology and maintenance, construction trades and information technology.  

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