(Yicai Global) Dec. 29 -- Leading Chinese online tutor TAL Education Group is to secure USD3.3 billion from a group of investors in a private share placement led by US private equity firm Silver Lake Partners.

USD2.3 billion will be in convertible notes and USD1 billion will be in newly issued shares, accounting for 4.3 percent and 2.2 percent of the firm’s total outstanding shares respectively, the Beijing-based company said yesterday.

"We welcome this round of investment as an endorsement of our unwavering commitment to providing a better learning experience for the student community," said TAL Chief Executive Officer Zhang Bangxin.

"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 California-based Silver Lake, which manages around USD75 billion in assets.

The investors have agreed not to dispose of the securities for six months once the deal is closed. The convertible notes have an annual interest rate of 0.5 percent and will mature on Feb. 1, 2026 after which they can be converted into company shares.

TAL’s stock [NYSE:TAL] closed down 2.45 percent yesterday at USD68.

Editor: Kim Taylor