Byju’s Offers to Repay $1.2 Billion Loan in Under Six Months
India’s most-valued startup, Byju’s, has offered to repay the entire $1.2 billion term loan B (TLB) to its lenders in under six months. The company has proposed repaying $300 million of the $1.2 billion loan in the next three months, contingent on lenders accepting its amendment proposal.
The lenders are evaluating the proposed amendment and have requested additional information regarding the repayment.
Byju’s raised the $1.2 billion debt in November 2021. The loan was due to mature in November 2026. However, Byju’s has been facing financial difficulties in recent months. In June, the company sued the lenders in the New York Supreme Court, challenging the acceleration of the TLB. It also skipped paying $40 million in interest that was due post the acceleration.
The company’s financial troubles have been attributed to a number of factors, including the slowdown in the edtech sector, the rising cost of customer acquisition, and the legal challenges it is facing.
Byju’s’s decision to repay the TLB in under six months is a surprise move. The company has not yet disclosed how it plans to raise the necessary funds. However, the move is seen as a positive step by the market.
If Byju’s is able to repay the loan, it will help to improve its financial health and boost investor confidence. It will also help to avoid a default on the loan, which could have had serious consequences for the company.
The lenders are still evaluating Byju’s proposal. It is not yet clear whether they will accept the amendment. However, the company’s move is a positive sign and could help to resolve the dispute between the two parties
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