TAL announces agreements for US$3.3 billion of private placement led by Silver Lake
2020-12-29 16:36:10

TAL Education Group (NYSE: TAL) today announces that several investors including Silver Lake have agreed to invest an aggregate of $3.3 billion in TAL through private placement, of which $2.3 billion is in convertible notes (the "Convertible Notes Portion"), and $1 billion is in newly issued Class A common shares (the "Equity Portion") of the company. 

According to TAL, the transaction is subject to customary closing conditions, and the closing is expected to take place shortly. 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 4.3% and 2.2% of TAL’s outstanding shares, respectively.

Besides, the investors have each agreed not to sell, transfer, or dispose of any securities acquired in the transaction for six months after the closing. The convertible notes will bear an interest of 0.50% per annum, mature on February 1, 2026, and be convertible into American depositary shares ("ADSs") of TAL at the holder’s option.

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