|
Delaware
(State or other jurisdiction of
incorporation or organization) |
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6770
(Primary Standard Industrial
Classification Code Number) |
| |
83-4388331
(I.R.S. Employer
Identification Number) |
|
|
Ross A. Fieldston
Raphael M. Russo Kenneth M. Schneider Paul, Weiss, Rifkind, Wharton & Garrison LLP 1285 Avenue of the Americas New York, NY 10019 Telephone: (212) 373-3000 |
| |
John Frederick
Software Luxembourg Holding S.A. Bijou, 17 Boulevard Raiffeisen L-2411 Luxembourg Grand Duchy of Luxembourg R.C.S Luxembourg: B246188 Telephone: (857) 317-7700 |
| |
Jaclyn L. Cohen
Mariel E. Cruz Weil, Gotshal & Manges LLP 767 Fifth Avenue New York, NY 10153 Telephone: (212) 310-8000 |
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Large accelerated filer
☐
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Accelerated filer
☐
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Non-accelerated filer
☒
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Smaller reporting company
☐
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| | | |
Emerging growth company
☒
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Title of each class of securities to be
registered |
| | |
Amount
to be registered |
| | |
Proposed maximum
offering price per share |
| | |
Proposed maximum
aggregate offering price |
| | |
Amount of
registration fee(6) |
| ||||||||||||
Class A Common Stock, par value $0.0001 per share
|
| | | | | 28,500,000(1) | | | | | | $ | 10.63 | | | | | | $ | 302,955,000(2) | | | | | | $ | 33,052,39(3) | | |
Class C Common Stock, par value $0.0001 per share
|
| | | | | 3,840,000(4) | | | | | | $ | 136.72 | | | | | | $ | 525,000,000(5) | | | | | | $ | 57,277.50(3) | | |
| | | | | |
|
Michael Klein
Chief Executive Officer and Chairman of the Board of Directors Churchill Capital Corp II |
| |
Ronald W. Hovsepian
Director — Authorised Signatory Software Luxembourg Holding S.A |
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Page
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| | | | 26 | | | |
| | | | 27 | | | |
| | | | 30 | | | |
Unaudited Historical Comparative and Pro Forma Combined Per Share Data of Churchill and Skillsoft
|
| | | | 0 | | |
| | | | 34 | | | |
| | | | 35 | | | |
| | | | 37 | | | |
| | | | 65 | | | |
| | | | 92 | | | |
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Page
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| | | | 257 | | | |
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| | | | F-1 | | | |
| | | | A-1 | | | |
| | | | B-1 | | | |
| | | | C-1 | | | |
| | | | D-1 | | | |
| | | | E-1 | | |
| | |
No redemptions
|
| |
Maximum redemptions
|
| ||||||||||||||||||
| | |
Number of
Shares |
| |
Percentage
of Outstanding Shares |
| |
Number of
Shares |
| |
Percentage of
Outstanding Shares |
| ||||||||||||
| | |
(in thousands)
|
| | | | | | | |
(in thousands)
|
| | | | | | | ||||||
Former equityholders of Skillsoft
|
| | | | 28,500 | | | | | | 17% | | | | | | 28,500 | | | | | | 26% | | |
Churchill’s public stockholders(1)
|
| | | | 69,000 | | | | | | 42% | | | | | | 13,262 | | | | | | 12% | | |
The Sponsor
|
| | | | 17,250 | | | | | | 10% | | | | | | 17,250 | | | | | | 16% | | |
PIPE Investors(2)
|
| | | | 51,000 | | | | | | 31% | | | | | | 51,000 | | | | | | 46% | | |
Total(3) | | | | | 165,750 | | | | | | 100% | | | | | | 110,012 | | | | | | 100% | | |
| | |
No redemptions
|
| |
Maximum redemptions
|
| ||||||||||||||||||
| | |
Number of
Shares |
| |
Percentage
of Outstanding Shares |
| |
Number of
Shares |
| |
Percentage of
Outstanding Shares |
| ||||||||||||
| | |
(in thousands)
|
| | | | | | | |
(in thousands)
|
| | | | | | | ||||||
Former equityholders of Skillsoft
|
| | | | 28,500 | | | | | | 23% | | | | | | 28,500 | | | | | | 26% | | |
Churchill’s public stockholders(1)
|
| | | | 69,000 | | | | | | 54% | | | | | | 52,866 | | | | | | 48% | | |
The Sponsor
|
| | | | 17,250 | | | | | | 14% | | | | | | 17,250 | | | | | | 16% | | |
PIPE Investors(2)
|
| | | | 11,000 | | | | | | 9% | | | | | | 11,000 | | | | | | 10% | | |
Total(3) | | | | | 125,750 | | | | | | 100% | | | | | | 109,616 | | | | | | 100% | | |
| | |
For the
Year Ended December 31, 2020 |
| |
For the
Period from April 11, 2019 (Inception) Through December 31, 2019 |
| ||||||
Net income
|
| | | $ | 1,124,364 | | | | | $ | 4,693,042 | | |
Less: Income attributable to common stock subject to possible redemption
|
| | | | (1,525,296) | | | | | | (4,868,674) | | |
Adjusted net income (loss)
|
| | | $ | (400,932) | | | | | $ | (175,632) | | |
Weighted average shares outstanding, basic and diluted(1)
|
| | | | 19,657,411 | | | | | | 18,180,430 | | |
Basic and diluted net income (loss) per common share
|
| | | $ | (0.02) | | | | | $ | (0.01) | | |
| | |
December 31, 2020
|
| |
December 31, 2019
|
| ||||||
Balance Sheet Data (end of period): | | | | ||||||||||
Cash
|
| | | $ | 3,873,865 | | | | | $ | 2,238,275 | | |
Prepaid income taxes
|
| | | | — | | | | | | 27,140 | | |
Prepaid expenses
|
| | | | 94,299 | | | | | | 275,525 | | |
Marketable securities held in Trust Account
|
| | | | 696,957,196 | | | | | | 695,295,418 | | |
Total assets
|
| | | | 700,925,360 | | | | | | 697,836,358 | | |
Total liabilities
|
| | |
|
23,607,761
|
| | | | | 21,638,123 | | |
Common stock subject to possible redemption
|
| | | | 672,322,591 | | | | | | 671,198,229 | | |
Total stockholders’ equity
|
| | |
|
5,000,008
|
| | | | | 5,000,006 | | |
| | |
Successor
|
| | |
Predecessor
|
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Aug 28,
2020 through Oct 31, 2020 |
| | |
Feb 1, 2020
through Aug 27, 2020 |
| |
Nine
Months Ended October 31, 2019 |
| |
Fiscal Year
Ended January 31, 2020 |
| |
Fiscal Year
Ended January 31, 2019 |
| |
Fiscal Year
Ended January 31, 2018 |
| ||||||||||||||||||
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total revenues(1)
|
| | | $ | 36,973 | | | | | | $ | 273,851 | | | | | $ | 386,010 | | | | | $ | 514,021 | | | | | $ | 534,141 | | | | | $ | 547,309 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenues
|
| | | | 15,882 | | | | | | | 52,160 | | | | | | 71,816 | | | | | | 96,044 | | | | | | 98,636 | | | | | | 106,274 | | |
Content and software development
|
| | | | 10,919 | | | | | | | 38,986 | | | | | | 49,977 | | | | | | 67,951 | | | | | | 57,332 | | | | | | 60,500 | | |
Selling and marketing
|
| | | | 18,193 | | | | | | | 75,028 | | | | | | 99,444 | | | | | | 140,785 | | | | | | 150,179 | | | | | | 143,898 | | |
General and administrative
|
| | | | 10,075 | | | | | | | 37,455 | | | | | | 52,031 | | | | | | 73,600 | | | | | | 51,421 | | | | | | 45,344 | | |
Recapitalization and transaction-
related costs |
| | | | 8,225 | | | | | | | 32,099 | | | | | | 6,009 | | | | | | — | | | | | | — | | | | | | — | | |
Amortization of intangible assets
|
| | | | 15,890 | | | | | | | 34,378 | | | | | | 75,076 | | | | | | 96,359 | | | | | | 151,752 | | | | | | 194,739 | | |
Impairment of goodwill and intangible assets
|
| | | | — | | | | | | | 332,376 | | | | | | 438,659 | | | | | | 440,598 | | | | | | 16,094 | | | | | | — | | |
Restructuring
|
| | | | 80 | | | | | | | 1,179 | | | | | | 1,395 | | | | | | 1,900 | | | | | | 2,073 | | | | | | 2,524 | | |
Total operating expenses
|
| | | | 79,264 | | | | | | | 603,661 | | | | | | 794,407 | | | | | | 917,237 | | | | | | 527,487 | | | | | | 553,279 | | |
Operating (loss) income
|
| | | | (42,291) | | | | | | | (329,810) | | | | | | (408,397) | | | | | | (403,216) | | | | | | 6,654 | | | | | | (5,970) | | |
Interest expense, net
|
| | | | (7,910) | | | | | | | (168,236) | | | | | | (319,973) | | | | | | (429,657) | | | | | | (395,842) | | | | | | (346,186) | | |
Reorganization items, net
|
| | | | — | | | | | | | 3,329,245 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Other income (expense)
|
| | | | 3,617 | | | | | | | 1,268 | | | | | | (4,750) | | | | | | (5,120) | | | | | | (5,624) | | | | | | 8,812 | | |
Loss before provision (benefit) for income taxes
|
| | | | (46,584) | | | | | | | 2,832,467 | | | | | | (733,120) | | | | | | (837,993) | | | | | | (394,812) | | | | | | (343,344) | | |
Provision for income taxes
|
| | | | (7,870) | | | | | | | 68,455 | | | | | | 7,897 | | | | | | 11,212 | | | | | | 5,027 | | | | | | 1,373 | | |
Net (loss) income
|
| | | $ | (38,714) | | | | | | $ | 2,764,012 | | | | | $ | (741,017) | | | | | $ | (849,205) | | | | | $ | (399,839) | | | | | $ | (344,717) | | |
| | |
Successor
|
| | |
Predecessor
|
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| | |
As of October 31,
|
| | |
As of January 31,
|
| ||||||||||||
| | |
2020
|
| | |
2020
|
| |
2019
|
| |||||||||
Cash and cash equivalents
|
| | | $ | 70,836 | | | | | | $ | 18,799 | | | | | $ | 15,584 | | |
Accounts receivable, net
|
| | | | 99,122 | | | | | | | 193,024 | | | | | | 217,354 | | |
Total current assets(1)
|
| | | | 204,009 | | | | | | | 263,250 | | | | | | 300,278 | | |
Accounts payable and accrued liabilities(1)(2)
|
| | | | 62,926 | | | | | | | 68,790 | | | | | | 76,404 | | |
Term loans and related-party debt and accrued interest
|
| | | | 514,950 | | | | | | | 4,238,068 | | | | | | 3,935,568 | | |
Total shareholder’s equity (deficit)
|
| | | | 635,827 | | | | | | | (2,761,744) | | | | | | (1,917,325) | | |
(amounts in thousands)
|
| |
For the year ended
December 31, 2020* |
| |||
Total pro forma combined revenue(1)
|
| | | $ | 537,881 | | |
Reversal of pro forma adjustments:
|
| | | | | | |
Skillsoft fresh-start reporting
|
| | | | 82,796 | | |
Global Knowledge purchase accounting
|
| | | | 6,932 | | |
Elimination of inter-company revenues
|
| | | | 875 | | |
Plus impact of Skillsoft reorganization, primarily related to deferred revenue
|
| | | | 44,392 | | |
Combined Adjusted revenue(3)
|
| | | $ | 672,876 | | |
Skillsoft Adjusted Revenue(2)
|
| | | $ | 483,227 | | |
Global Knowledge historical revenue
|
| | | | 189,649 | | |
Combined Adjusted revenue(3)
|
| | | $ | 672,876 | | |
Total pro forma combined net income(4)
|
| | | $ | 2,578,805 | | |
Reversal of pro forma adjustments
|
| | | | (197,567) | | |
Adjustments based on historical financial statements:(5)
|
| | | | (2,410,794) | | |
Pro forma combined EBITDA(6)
|
| | | $ | (29,556) | | |
Reversal of Churchill purchase accounting, as reflected in pro forma
|
| | | | 19,637 | | |
Reversal of Skillsoft fresh-start reporting, as reflected in pro forma
|
| | | | 75,010 | | |
Reversal of Skillsoft purchase accounting, as reflected in pro forma
|
| | | | 18,200 | | |
Reversal of Global Knowledge purchase accounting, as reflected in pro forma
|
| | | | 14,388 | | |
Plus other adjustments(7)
|
| | | | 77,000 | | |
Combined Adjusted EBITDA(8)
|
| | | $ | 174,679 | | |
| | |
Pro Forma Condensed Combined
|
| |||||||||
(in thousands, except share and per share data)
|
| |
No
Redemptions(1) |
| |
Max
Redemptions(2) |
| ||||||
Summary Unaudited Pro Forma Condensed Combined Statement of Operations:
|
| | | | | | | | | | | | |
Year ended December 31, 2020 | | | | | | | | | | | | | |
Revenue
|
| | | $ | 537,881 | | | | | $ | 537,881 | | |
Operating loss
|
| | | | (621,896) | | | | | | (621,896) | | |
Net income
|
| | | | 2,578,805 | | | | | | 2,578,805 | | |
Net earnings per share – basic and diluted
|
| | | | 15.37 | | | | | | 22.05 | | |
Weighted-average Class A shares outstanding – basic and diluted
|
| | | | 167,750,000 | | | | | | 116,962,159 | | |
Summary Unaudited Pro Forma Condensed Combined Balance Sheet: | | | | | | | | | | | | | |
As of December 31, 2020 | | | | | | | | | | | | | |
Total current assets
|
| | | $ | 746,908 | | | | | $ | 233,951 | | |
Total assets
|
| | | | 2,531,779 | | | | | | 2,018,822 | | |
Total current liabilities
|
| | | | 317,135 | | | | | | 317,135 | | |
Total liabilities
|
| | | | 1,071,782 | | | | | | 1,071,782 | | |
Total stockholders’ equity
|
| | | | 1,459,997 | | | | | | 947,040 | | |
| | | | | | | | |
Skillsoft
|
| |
Pro Forma Condensed Combined(1)
|
| |||||||||||||||
(in thousands, except share and per share
data) |
| |
Churchill
|
| |
Skillsoft
Predecessor(2) |
| |
Skillsoft
Successor(3) |
| |
No
Redemptions |
| |
Max
Redemptions |
| ||||||||||||
As of and for the year ended December 31, 2020
|
| | | | | | ||||||||||||||||||||||
Book value per share
|
| | | $ | 0.25 | | | | | $ | (32,665.91) | | | |
$165.58 and $3,973.92
|
| | | $ | 0.01 | | | | | $ | 0.01 | | |
Weighted average shares outstanding – basic and diluted
|
| | | | 19,657,411 | | | | | | 100,100 | | | |
3,840 and 160
|
| | | | 165,750,000 | | | | | | 110,011,664 | | |
Net (loss) earnings per share – basic and diluted
|
| | | $ | (0.02) | | | | | $ | 26,531.71 | | | |
$(11.21) and $27.19
|
| | | $ | 16.21 | | | | | $ | 24.42 | | |