No Respite For BYJU’S, Lenders Seek $200 Mn Prepayment On $1.2 Bn Loan

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BYJU’S, the Indian edtech decacorn, is facing demands from its lenders for a $200 million prepayment on its $1.2 billion Term Loan B (TLB), along with a higher interest rate. The company has yet to agree to the prepayment clause, and discussions are underway to reach a settlement. BYJU’S is also in talks to raise $600-700 million through a mix of equity and convertible notes, with a large portion expected to be raised through equity funding at a flat valuation of $22 billion. The conversations around the renegotiation of the loan were prompted by the edtech giant being late in filing its financial statements again, with the filing of FY22 financials by the end of September 2022 being a requirement in the TLB agreement. The edtech giant has also been asked to provide fortnightly updates on its cash position. BYJU’S has been able to sustain operations without dipping into its reserves, as its cash position has remained unchanged over the past few months. Last week, BlackRock marked down the value of its holding in BYJU’S by nearly 50%, taking the edtech’s valuation to $11 billion.

It seems that BYJU’S, the edtech decacorn, has been facing challenges in impressing major investors such as BlackRock and Prosus. Last week, BlackRock marked down the value of its holding in BYJU’S by nearly 50%, which brought the company’s valuation to $11 billion. Similarly, in November 2022, Prosus valued the edtech giant at $5.98 billion, which is significantly lower than its previous valuation.