TAL Announces Agreements for US$3.3 Billion of Private Placement with Silver Lake and Other Investors
TAL Education Group (NYSE: TAL) announced a $3.3 billion investment from a group of investors, including $2.3 billion in convertible notes and $1 billion in Class A common shares. Silver Lake leads the investment, which will represent 4.3% and 2.2% of outstanding shares post-conversion. The convertible notes have a 0.50% annual interest rate and mature on February 1, 2026. The transaction is subject to closing conditions, and investors are restricted from selling their securities for six months post-closing. This investment is seen as a vote of confidence in TAL's growth in the EdTech sector.
- Secured $3.3 billion investment enhancing financial stability.
- Investment includes $2.3 billion in convertible notes which may convert into equity, potentially benefiting shareholders.
- Endorsement from Silver Lake highlights TAL's strong market position in China's EdTech sector.
- None.
BEIJING, Dec. 28, 2020 /PRNewswire/ -- TAL Education Group (NYSE: TAL) ("TAL" or the "Company"), a leading K-12 after-school tutoring services provider in China, today announced that a group of investors has agreed to invest an aggregate of
The transaction is subject to customary closing conditions and the closing is expected to take place in the near future. Immediately following the closing of the transaction, assuming the conversion of the entire Convertible Notes Portion into shares, the Convertible Notes Portion and the Equity Portion will account for
"We welcome this round of investment as an endorsement of our unwavering commitment to providing a better learning experience for the student community." said Bangxin Zhang, Chief Executive Officer of TAL.
"We are pleased to invest in TAL as China's leading EdTech platform and have strong conviction in the Company's leadership position and growth prospects in the education space," said Ken Hao, Chairman of Silver Lake.
The issuance of the securities is exempt from registration under the Securities Act of 1933, as amended (the "Securities Act") pursuant to Section 4(2) of the Securities Act regarding transactions not involving a public offering and is made in reliance on, and in compliance with, Regulation S under the Securities Act.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" 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 reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Information regarding these risks and uncertainties is included in the Company's reports filed with, or furnished to the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and TAL Education Group undertakes no duty to update such information or any forward-looking statement, except as required under applicable law.
About TAL Education Group
TAL Education Group is a leading K-12 after-school tutoring services provider in China. The acronym "TAL" stands for "Tomorrow Advancing Life", which reflects our vision to promote top learning opportunities for Chinese students through both high-quality teaching and content, as well as leading edge application of technology in the education experience. TAL Education Group offers comprehensive tutoring services to students from pre-school to the twelfth grade through three flexible class formats: small classes, personalized premium services, and online courses. Our tutoring services cover the core academic subjects in China's school curriculum as well as competence oriented programs. The Company's learning center network currently covers 91 cities. We also operate www.jzb.com, a leading online education platform in China. Our ADSs trade on the New York Stock Exchange under the symbol "TAL".
About Silver Lake
Silver Lake is a global technology investment firm, with approximately
For further information, please contact:
TAL EDUCATION GROUP
Echo Yan
Investor Relations
TAL Education Group
Tel: +86 10 5292 6658
Email: ir@tal.com
Caroline Straathof
IR Inside
Tel: +31 6 5462 4301
Email: info@irinside.com
SILVER LAKE
Jennifer Stroud
Edelman
Tel: +1 646 565 1792
Email: Jennifer.Stroud@edelman.com
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SOURCE TAL Education Group
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