NYSE-listed China’s TAL Education to Raise $3.3bn


Date: 12.01.2021

TAL Education Group, a Beijing-based K-12 after-school tutoring services provider in China, announced on Wednesday to raise USD 3.3bn through private placement.

TAL to raise USD 2.3bn via convertible notes, to investors led by Silver Lake, a Menlo Park, California-based technology-focused investment firm with USD 75bn in total AUM, while undisclosed investors have agreed to invest USD 1.0bn in the Chinese education company's newly issued Class A common shares.

Assuming the conversion of the entire convertible notes into shares, the convertible notes portion and the equity portion will account for 4.3% and 2.2% of TAL's outstanding shares, respectively.

NYSE-listed, TAL has a current market value of USD 40.8bn. Its stock price has increased by 41% YTD. 

As part of the transaction, subject to customary closing conditions, the investors have each agreed not to sell, transfer, or dispose of any securities acquired in the transaction for six months after the closing.

TAL said the convertible notes would bear an interest of 0.50% per annum, mature on 01 February 2026, and be convertible into American depositary shares (ADSs) of TAL at the holder's option. 

TAL didn't disclose the use of the proceeds.

Last month, an undisclosed global growth investment firm agreed to purchase c. USD 1.5bn of TAL's newly issued Class A common shares, equivalent to c. 8.4% of TAL's outstanding shares, according to AnalyzeMarkets Global Deals Data.

The Company:

TAL provides tutoring services to students from pre-school to the twelfth grade through three flexible class formats: small classes, personalized premium services, and online courses. 

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