TAL Education Group (NYSE:TAL) Raises $3.3b

TAL Education Group (NYSE:TAL) Raises $3.3b

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 $3.3 billion in the Company 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. 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 Portion into shares, the Convertible Notes Portion and the Equity Portion will account for 4.3% and 2.2% of the Company’s outstanding shares, respectively. 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 the Company at the holder’s option.

“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.

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 $75 billion in combined assets under management and committed capital and a team of professionals based in North America, Europe and Asia. Silver Lake’s portfolio of investments collectively generates more than $180 billion of revenue annually and employs more than 400,000 people globally. For more information about Silver Lake and its portfolio, please visit www.silverlake.com.

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S. Jack Heffernan Ph.D. Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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