News

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25 Nov 2008

DLA Piper represents Grand Canyon Education in first US IPO since August

Closing Marks Firm’s Handling of Both US IPOs Completed Over Last Four Months

Press Release

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(Phoenix) – DLA Piper acted as issuer's counsel to Grand Canyon Education, Inc., a for-profit education company and operator of Grand Canyon University in Phoenix, in connection with its US$126 million initial public offering and listing on the Nasdaq Global Market.

By becoming the first company to complete an IPO in the US since early August 2008, Grand Canyon Education ended the longest drought between IPOs in the US capital markets since 1975. The offering, which was underwritten by Credit Suisse and Merrill Lynch, priced on November 19, 2008 at US$12.00 per share and closed on November 25, 2008. Grand Canyon Education issued all 10.5 million common shares in the offering and granted the underwriters a 30-day option to purchase up to 1.575 million additional shares to cover over-allotments, if any.

In August of this year, DLA Piper acted as underwriters’ counsel for Rackspace Hosting, Inc.’s IPO, the last IPO to be completed in the US before this latest offering.

The DLA Piper team on the Grand Canyon IPO was led by Phoenix office partners David Lewis and Steve Pidgeon, and associate Jeff DeBruin. Also playing key roles were associates Jeff Meyerson and Rebecca Davis on due diligence and corporate restructuring matters.

“We were extremely pleased with DLA Piper's legal representation of us in this transaction, and feel very fortunate to have had a firm like DLA Piper, a global leader in capital markets transactions with deep knowledge and experience in the for-profit education industry, available to us right here in Phoenix,” said Brent Richardson, Executive Chairman and founder of Grand Canyon Education. He added: “DLA Piper did a great job guiding us through a complex process in the face of the current market turmoil."

“Completing this IPO is a significant accomplishment for Grand Canyon Education, considering that nearly 90 other companies have withdrawn or postponed proposed IPOs in 2008, including over 30 since the last IPO was completed in August,” said David Lewis, lead counsel to Grand Canyon Education and partner in DLA Piper’s Phoenix office. “We are delighted that we were able to help Grand Canyon buck this trend and complete the offering.”

“We are thrilled that this IPO came to a successful conclusion,” added Steven Pidgeon, co-managing partner of DLA Piper’s Phoenix office. “It is a testament to everyone’s tireless efforts that this deal was completed despite the challenges presented by the current economic climate.”

The DLA Piper team also benefited from the input of DLA Piper lawyers from other parts of the country, including Bill Hoffman and Dave Plewa from the East Palo Alto office and New York-based attorneys Marjorie Adams and Jack Kantrowitz.

Grand Canyon Education, Inc. operates Grand Canyon University and is a regionally accredited provider of online postsecondary education services focused on offering graduate and undergraduate degree programs in its core disciplines of education, business, and healthcare. In addition to online programs, the company offers ground programs at its traditional campus in Phoenix and onsite at the facilities of employers.

With more than 600 lawyers worldwide, DLA Piper’s Corporate and Finance Group advises many of the world’s leading and emerging companies, as well as financial institutions and buyout and investment funds, on mergers and acquisitions, IPOs, public and private equity and debt offerings, venture capital and private equity investments, and other transactional matters.