Puxin Limited (NYSE: NEW), a China-based education company focusing on after-school tutoring and study abroad, announced recently 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.

According to Puxin’s announcement, 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. 

Founded in 2014, Puxin Limited now has more than 50 brands in 35 cities across the country through self-construction, investment, acquisition, and integration. The company offers a full spectrum of K-12 and study-abroad tutoring, as well as programs in terms of preparation for admission tests and applications for top schools, universities and graduate programs in China and other countries. 

Before the agreements, Puxin has announced its financial results for the third quarter of 2020. During the reporting period, the company’s revenue was 833 million yuan, a year-on-year decrease of 6.32%. The net profit was 42.4 million yuan, a year-on-year increase of 25.7%.