Arco Announces Closing of US$150 Million Investment from Dragoneer and General Atlantic
02 December 2021 - 8:19AM
Business Wire
Arco Platform Limited, or Arco (Nasdaq: ARCE), today
announced that it closed its issuance of convertible senior notes
pursuant to agreements entered into with affiliates of Dragoneer
Investment Group LLC (“Dragoneer”), which have committed to make a
US$100 million strategic investment, and General Atlantic Partners
(Bermuda) H, L.P. (“General Atlantic”), which has committed to make
a US$50 million strategic investment.
Each note will be convertible at the option of the holder into
Arco’s Class A common shares at the agreed conversion rate, which
is equivalent to an initial conversion price of US$29 per share.
The conversion price represents an approximately 65% premium to the
trailing 30-day volume-weighted share price at the time of signing
the investment agreements. Dragoneer and General Atlantic will
beneficially own approximately 5.6% and 2.8%, respectively, of the
total shares of Arco (on an as-converted basis for the convertible
senior notes).
The convertible notes mature in 7 years, on November 15, 2028,
and bear interest at 8% per year fixed in Brazilian reais, payable
quarterly in cash in arrears in United States dollars, therefore
mitigating currency risk.
Arco intends to use the proceeds from Dragoneer’s and General
Atlantic’s investments to fund its growth strategy, including an
emphasis on cross-selling portfolio brands and making accretive
acquisitions in existing and new verticals.
About Arco Platform Limited (Nasdaq: ARCE)
Arco has empowered hundreds of thousands of students to rewrite
their futures through education. Our data-driven learning
methodology, proprietary adaptable curriculum, interactive hybrid
content, and high-quality pedagogical services allow students to
personalize their learning experience while enabling schools to
thrive.
Forward-Looking Statements
This press release contains forward-looking statements as
pertains to Arco within the meaning of the Private Securities
Litigation Reform Act of 1995, including, but not limited to,
Arco’s expectations or predictions of future financial or business
performance conditions. The achievement or success of the matters
covered by statements herein involves substantial known and unknown
risks, uncertainties and assumptions. If any such risks or
uncertainties materialize or if any of the assumptions prove
incorrect, Arco’s results could differ materially from the results
expressed or implied by the statements it makes. You should not
rely upon forward-looking statements as predictions of future
events. Forward-looking statements are made on the basis of Arco’s
current expectations and projections relating to its financial
conditions, result of operations, plans, objectives, future
performance and business, and these statements are not guarantees
of future performance.
Statements which herein address activities, events, conditions
or developments that Arco expects, believes or anticipates will or
may occur in the future are forward-looking statements. You can
generally identify forward-looking statements by the use of forward
looking terminology such as “anticipate,” “believe,” “can,”
“continue,” “could,” “estimate,” “evaluate,” “expect,” “explore,”
“forecast,” “guidance,” “intend,” “likely,” “may,” “might,”
“outlook,” “plan,” “potential,” “predict,” “probable,” “project,”
“seek,” “should,” “view,” or “will,” or the negative thereof or
other variations thereon or comparable terminology.
Forward-looking statements represent Arco management’s beliefs
and assumptions only as of the date such statements are made, and
Arco undertakes no obligation to update any forward-looking
statements made in this presentation to reflect events or
circumstances after the date of this press release or to reflect
new information or the occurrence of unanticipated events, except
as required by law.
Further information on these and other factors that could affect
Arco’s financial results is included in filings Arco makes with the
Securities and Exchange Commission from time to time, including the
section titled “Risk Factors” in Arco’s most recent Forms 20-F and
6-K. These documents are available on the SEC Filings section of
the Investor Relations section of Arco’s website at:
https://investor.arcoplatform.com/
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version on businesswire.com: https://www.businesswire.com/news/home/20211201006143/en/
Investor Relations Contact Carina Carreira Arco Platform
Limited carinacarreira@arcoeducacao.com.br
IR@arcoeducacao.com.br
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