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Tuesday, Aug 20
Corinthian Colleges will not be required to post letter of credit
- Corinthian Colleges (COCO) clears a major hurdle as the Department of Education puts the company's composite score at 0.9 for 2011 and 1.5 for 2012. (8-K)
- The 2012 score is the saving grace here as it means the company will not be required to post a letter of credit and will remain eligible to participate in Title IV programs (schools with scores below 1 can still participate in Title IV under a provisional certification).
- Although the 2012 score will not be adjusted in the near-term, the Department of Education is still reviewing the company's treatment of $16.3M in a "borrowings under student notes receivable sale agreement."
- Previous: BofA's David Chu flags letter of credit overhang at COCO
- Shares +12% premarket.