SÃO PAULOArco Platform Limited (“Arco” or “Company”) (Nasdaq: ARCE),announced today that Companhia Brasileira de Educação e Sistemas de Ensino S.A. (“CBE” or “Issuer”), its indirect wholly-owned subsidiary, concluded the issuance of 1,200,000 non-convertible debentures, each at a par value of R$1,000 (the “Debentures”), totaling R$1,200 million (approximately US$230 million), for public distribution in Brazil with restricted placement efforts to institutional investors (the “Offering”).
The Offering is part of Arco’s balance sheet management strategy, and Arco intends to use the net proceeds of the Offering to prepay the debentures issued by CBE in August 2021, currently totaling R$1,000 million (principal plus accrued interest), to strengthen its cash position, and to extend its debt maturity profile.
The Debentures mature on August 3, 2027, with principal to be amortized in three equal instalments payable on August 3, 2025, August 3, 2026, and August 3, 2027. The Debentures bear interest at 100% of the CDI interest rate (the average of interbank overnight rates in Brazil, based on 252 business days) plus 2.30% per annum, payable semi-annually on February 3 and August 3, and are guaranteed by Arco Educação S.A.
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 with while enabling schools to thrive.
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