Byju’s increases term loan B amount to $1.2 billion

By Sara Rosenberg

New York, Nov. 5 – Byju’s (Think & Learn Private Ltd.) upsized its five-year senior secured covenant-lite term loan B to $1.2 billion from $500 million, according to a market source.

In addition, changes were made to the credit agreement, the source said.

Pricing on the term loan remained at Libor plus 550 basis points with a 0.75% Libor floor and an original issue discount of 98.5.

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.

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

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

Recommitments were scheduled to be due at noon ET on Friday, 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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