Puxin Announces US$69 Million Private Placement of Convertible Notes

Rhea-AI Summary

Puxin Limited (NYSE: NEW) announces a private placement of convertible notes totaling US$69 million with institutional investors. These notes will mature in five years and carry an interest rate of 3% per annum, payable semiannually. Investors can convert their notes into ordinary shares at any time post-issuance. The financing is structured to meet customary closing conditions and aims to support Puxin's growth strategies in the after-school education sector in China.

Positive

• Successful placement of US$69 million in convertible notes strengthens financial position.
• Interest rate set at 3% per annum, which is favorable for cash flow management.

Negative

• Convertible notes may dilute existing shareholders upon conversion.

BEIJING, Feb. 26, 2021 /PRNewswire/ -- Puxin Limited (NYSE: NEW) ("Puxin" or the "Company"), a successful consolidator of the after-school education industry in China, today announced that it has entered into convertible note purchase agreements with a group of institutional investors (the "Purchasers"), pursuant to which Puxin will issue and sell convertible notes in an aggregate principal amount of US$69 million through a private placement to the Purchasers. The transaction is subject to the satisfaction of customary closing conditions.

The convertible notes will mature in five years, bearing interest at the rate of 3% per annum from the issuance date which shall be payable semiannually in arrears in cash. Subjected to and upon compliance with the terms of the convertible notes, each Purchaser has the right to convert all or any portion of the convertible notes at its option at any time after the issuance into ordinary shares of the Company represented by American depositary shares ("ADSs"). Unless previously redeemed or converted, the Company shall repay the notes on the maturity date at 100% of the then outstanding principal amount plus all accrued but unpaid interest. 

Safe Harbor Statement

This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "may," "would," "expect," "anticipate," "future," "intend," "aim," "plan," "believe," "estimate," "predict," "project," "continue," "confident" and similar statements. The Company may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: its goals and strategies, its ability to achieve and maintain profitability, its ability to attract and retain students to enroll in its courses, its ability to effectively manage its business expansion and successfully integrate businesses it acquired, its ability to identify or pursue targets for acquisitions, its ability to compete effectively against its competitors, its ability to improve the content of its existing courses or to develop new courses, and relevant government policies and regulations relating to the Company's corporate structure, business and industry. Further information regarding these and other risks is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and the Company does not undertake any obligation to update such information, except as required under applicable law.

About Puxin Limited

Puxin Limited (NYSE: NEW, "Puxin" or the "Company") is a successful consolidator of the after-school education industry in China. Puxin has a strong acquisition and integration expertise to effectively improve education quality and operational performance of acquired schools. Puxin offers a full spectrum of K-12 and study-abroad tutoring programs designed to help students achieve academic excellence, as well as prepare for admission tests and applications for top schools, universities and graduate programs in China and other countries. The Company has developed a business model effectively combining strategic acquisitions and organic growth achieved through successful post-acquisition integration, which has differentiated the Company from other after-school education service providers in China. For more information, please visit http://www.pxjy.com/.

Contacts

Puxin Limited

Phone: +86-10-6269-8930
E-mail: ir@pxjy.com

ICA (Institutional Capital Advisory)

Mr. Kevin Yang
Phone: +86-021-8028-6033
E-mail: puxin@icaasia.com

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SOURCE Puxin Limited

FAQ

What is the value of the convertible notes issued by Puxin Limited?

Puxin Limited has issued convertible notes totaling US$69 million.

What is the interest rate on the convertible notes issued by Puxin (NYSE: NEW)?

The convertible notes bear an interest rate of 3% per annum.

When do the convertible notes issued by Puxin Limited mature?

The convertible notes mature in five years.

Can holders of the convertible notes convert them into shares?

Yes, holders can convert the notes into ordinary shares at their option after issuance.