KnowledgeFunding Ohio Extends Offer for Outstanding Student Loan Revenue Bonds

CINCINNATI, May 13 /PRNewswire/ -- KnowledgeFunding Ohio, Inc. (the "Corporation") announced today that it has extended until 11:00 a.m., New York City time on May 20, 2010 (the "Expiration Date") its consent solicitation and cash tender offer (the "Offer") for the following series of its outstanding student loan revenue bonds: Senior Series 2005A-1 Bonds, Senior Series 2005A-2 Bonds, Senior Series 2005A-3 Bonds, and Subordinate Series 2005C-1 Bonds, all issued on December 21, 2005 and Senior Series 2006A-1 Bonds, Senior Series 2006A-2 Bonds, Senior Series 2006 A-3 Bonds, and Subordinate Series 2006C-1 Bonds, all issued on December 20, 2006 (collectively, the "Bonds").  The Corporation has also extended the period during which holders of Bonds may tender them and be eligible to receive an early tender premium (the "Early Tender Date") until the Expiration Date.

The Offer is made pursuant to the Consent Solicitation Statement and Offer to Purchase (the "Statement"), dated April 12, 2010, that was previously distributed to holders of the Bonds, as previously amended and as amended hereby.  Only the Expiration Date and the Early Tender Date are being modified by this press release; the remaining terms of the Offer will continue unchanged, as amended.

As of 5:00 p.m., New York City time, on Wednesday, May 12, 2010, the following principal amounts of Bonds had been tendered (and the related consents had been deemed delivered): $9 million of Senior Series 2005A-2, $71.2 million of Senior Series 2005A-3, $11.6 million of Senior Series 2006A-1, and $23.4 million of Senior Series 2006A-3 Bonds.  

Additionally, the Corporation had received stand-alone consents with respect to the following principal amounts of Bonds that have not been tendered: $27 million of Senior Series 2005A-1, $13.6 million of Senior Series 2006A-2, and $30 million of Senior Series 2006A-3 Bonds.

To purchase the tendered Bonds, the Corporation must receive the consents (by tender or by stand-alone consent) to the proposed amendments to the related Master Trust Indenture of holders of more than $186,300,000 in aggregate principal amount of the Bonds (including holders of more than $164,100,000 in aggregate principal amount of the senior series of Bonds).  As of 5:00 p.m. New York City time on Wednesday, May 12, 2010, the consents of holders of $185,800,000 in aggregate principal amount of senior series of Bonds had been received by the Corporation.  

For the amendments to become effective and the Corporation to accept tendered Bonds for purchase, the Corporation must receive additional consents, whether in connection with tendered Bonds or by stand-alone consents, relating to Bonds in the minimum aggregate principal amount of $600,000 prior to the Expiration Date.

The Corporation will not pay any consideration to bondholders or beneficial owners of Bonds for the delivery of any consent that is not made in connection with the tender of the related Bonds.

Bondholders interested in delivering their consents without tendering bonds should contact Bondholder Communications Group, the Information and Tender Agent for the Offer, at 1-888-385-BOND for the necessary form and instructions.  Bondholders interested in tendering their Bonds should follow the instructions in the Statement.  Questions regarding the Statement should be directed to J.P. Morgan Securities Inc., the Dealer Manager for the Offer, at (212) 834-5435.

Copies of the Statement and the separate consent form may be obtained by contacting:

SOURCE KnowledgeFunding Ohio, Inc.