TAL Education Group (NYSE:TAL) saw its shares gain ground Tuesday, after the company reported a $3.3-billion private placement with Silver Lake and other investors.
The Beijing-based TAL is a leading K-12 after-school tutoring services provider in China. It announced Monday that a group of investors has agreed to invest an aggregate of $3.3 billion in the Company through private placement, of which $2.3 billion is in convertible notes and $1 billion is in newly issued Class A common shares of the Company. Silver Lake, a global leader in technology investing, led the Convertible Notes Portion.
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
"We welcome this round of investment as an endorsement of our unwavering commitment to providing a better learning experience for the student community." said CEO Bangxin Zhang.
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 12th grade through three flexible class formats: small classes, personalized premium services, and online courses.
TAL shares acquired 63 cents to $68.63.
