Princeton Review Inc. announced today that Michael Perik will succeed founder John Katzman as chief executive officer of the academic testing service.
``I'm not stepping down,'' Katzman, who became CEO in June and will remain the company's executive chairman, said today in a telephone interview. ``I added Michael to the team because I think he has skills the company needs and I think I have skills the company needs as well.''
Perik comes to the Review from Houghton Mifflin's assessment division, where he was chairman. He has also been chief executive of Achievement Technologies and of the Learning Co., where he worked with Katzman when the company licensed some of the Review's products, Perik said.
The company offered Perik the opportunity to purchase 1.7 million shares at $4.60, the price at Friday's close. The offer expires in 10 years.
The Review, which is not affiliated with Princeton University, also announced it had received a $60 million preferred stock investment from Bain Capital LLC and Prides Capital Partners LLC for ``the general strengthening of the company,'' Perik said by phone.
The preferred stock will be convertible into common stock at $6 a share and will accrue a 6 percent annual dividend for four years.
Shares of Princeton Review rose 40 cents, or 8.3 percent, to $5.25 as of 3:57 p.m. in New York Stock Exchange trading composite. Shares were down 8.1 percent this year before today.
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