Byju’s, lenders in deal to rejig $1.2 bn loan, end litigation

livemint.com:

Mumbai: Struggling edtech platform Byju’s and its lenders have reached a consensus on restructuring its $1.2 billion term loan B. According to a joint statement by Byju’s and its lenders, the proposed amendment, that will be effective before 3 August, seeks to address loan acceleration, end all litigation, and prevent any further enforcement actions. A person in the know, seeking anonymity, said Byju’s is willing to revise the coupon, or interest payment, upwards in line with the lenders’ demands.

“The steering committee of ad hoc term loan lenders, who collectively own over 85% of Byju’s $1.2 billion term loan, today said that they had agreed to work collaboratively toward a signed and completed term loan amendment prior to 3 August," according to the joint statement. “We made progress with Byju’s for a completed loan amendment. This announcement is consistent with stated goals of working constructively with Byju’s management to protect the value of the franchise.

We look forward to completing the loan amendment over the next two weeks and are committed to do our part to deliver on our agreed upon timeline," it added. The announcement comes months after the lenders, led by Redwood Capital, dragged Byju’s to a US court seeking that loan repayment be speeded up and gaining control of the US entity, Byju’s Alpha. With bondholders renegotiating the loan terms with the company amid financial filing delays, the Byju Raveendran-led startup is facing increasing pressure to effectively manage its cost of capital.