UPDATE 1-Princeton Review plans 14 mln share offering

* Offering to pay down bridge loan of $40 mln

* Issue represents about 41 pct of outstanding shares

BANGALORE, April 15 (BestGrowthStock) – Educational services
company Princeton Review Inc (REVU.O: ) announced plans for a
public offering of 14 million shares, to reduce debt it took on
for a recent acquisition.

The offering, which represents about 41 percent of the
company’s outstanding shares, would be used to pay down a
bridge loan of $40 million, a company spokesperson told Reuters
by email.

In October, Princeton Review said it would acquire online
career education provider Penn Foster Education Group Inc in a
$170 million cash deal.

At the time, the company said it would fund the deal
through $155 million of debt financing and $30 million of
equity financing.

The spokesperson said Wednesday that the company currently
has $157 million of debt outstanding.

The company, which offers test preparation services and
tutoring services for high school and post secondary students,
said Roth Capital Partners is acting as sole manager for the
offering.

Shares of the company fell about 11 percent to $3.10 in
trading after the bell. They closed at $3.47 Wednesday on
Nasdaq.

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(Reporting by Bijoy Koyitty in Bangalore; Editing by Anthony
Kurian)

UPDATE 1-Princeton Review plans 14 mln share offering