Arco Announces Closing of US$150 Million Investment from Dragoneer and General Atlantic
Arco Platform Limited (Nasdaq: ARCE) has successfully closed the issuance of convertible senior notes, raising
- Raised
US$150 million from strategic investors. - Investment will fund growth strategy through cross-selling and acquisitions.
- Convertible notes have a fixed interest rate of 8%, mitigating currency risk.
- Conversion price of
US$29 is a 65% premium, potentially causing investor dilution.
SÃO PAULO--(BUSINESS WIRE)--
Each note will be convertible at the option of the holder into Arco’s Class A common shares at the agreed conversion rate, which is equivalent to an initial conversion price of
The convertible notes mature in 7 years, on
Arco intends to use the proceeds from Dragoneer’s and General Atlantic’s investments to fund its growth strategy, including an emphasis on cross-selling portfolio brands and making accretive acquisitions in existing and new verticals.
About
Arco has empowered hundreds of thousands of students to rewrite their futures through education. Our data-driven learning methodology, proprietary adaptable curriculum, interactive hybrid content, and high-quality pedagogical services allow students to personalize their learning experience while enabling schools to thrive.
Forward-Looking Statements
This press release contains forward-looking statements as pertains to Arco within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, Arco’s expectations or predictions of future financial or business performance conditions. The achievement or success of the matters covered by statements herein involves substantial known and unknown risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, Arco’s results could differ materially from the results expressed or implied by the statements it makes. You should not rely upon forward-looking statements as predictions of future events. Forward-looking statements are made on the basis of Arco’s current expectations and projections relating to its financial conditions, result of operations, plans, objectives, future performance and business, and these statements are not guarantees of future performance.
Statements which herein address activities, events, conditions or developments that Arco expects, believes or anticipates will or may occur in the future are forward-looking statements. You can generally identify forward-looking statements by the use of forward looking terminology such as “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “evaluate,” “expect,” “explore,” “forecast,” “guidance,” “intend,” “likely,” “may,” “might,” “outlook,” “plan,” “potential,” “predict,” “probable,” “project,” “seek,” “should,” “view,” or “will,” or the negative thereof or other variations thereon or comparable terminology.
Forward-looking statements represent Arco management’s beliefs and assumptions only as of the date such statements are made, and Arco undertakes no obligation to update any forward-looking statements made in this presentation to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.
Further information on these and other factors that could affect Arco’s financial results is included in filings Arco makes with the
View source version on businesswire.com: https://www.businesswire.com/news/home/20211201006143/en/
Investor Relations Contact
carinacarreira@arcoeducacao.com.br
IR@arcoeducacao.com.br
Source:
FAQ
What are the details of Arco Platform's recent financing announcement?
How does the convertible note structure affect Arco's share price?
What is Arco's plan for the funds raised from the convertible notes?
When do Arco's convertible notes mature?
What is the interest rate on Arco's convertible notes?
