Byju’s talks $500 million term loan B at Libor plus 550 bps

By Sara Rosenberg

New York, Oct. 21 – Byju’s (Think & Learn Private Ltd.) is talking its $500 million five-year senior secured covenant-lite term loan B at Libor plus 550 basis points with a 0.75% Libor floor and an original issue discount of 98.5 ahead of its lender call at 11 a.m. ET on Friday, according to a market source.

The margin on the term loan will step-up to Libor plus 600 bps on the date that is nine months post-close in the event that the company has not obtained credit ratings from two of Moody’s Investors Service, S&P Global Ratings and Fitch Ratings, the source said.

Included in the term loan is hard call protection of 105 in year one, 103 in year two and 101 in year three, and amortization of 1% per annum.

Morgan Stanley Senior Funding Inc. and JPMorgan Chase Bank are the joint lead arrangers and bookrunners on the deal.

Commitments are due at 5 p.m. ET on Nov. 4, the source added.

Proceeds will be used to fund general corporate purposes offshore only, including to support business growth initiatives in North America and to fund potential strategic opportunities.

Byju’s is an India-based educational technology company.

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