BYJU’S seeks easier terms against its $1.2 billion loan, claims report
People familiar with the matter also stated that discussions on more lenient terms, including lower coupon and more time to repay, are continuing and no final decision has been reached.
- Dec 7, 2022,
- Updated Dec 7, 2022 6:50 PM IST
Online edtech start-up, BYJU’S is endeavouring to restructure its loan worth $1.2 billion as it struggles to cope with steep losses and cost reduction targets, a report by Bloomberg revealed. The report further highlighted that the decacorn has appointed an adviser to discuss tweaks in covenants of the term loan B with creditors.
People familiar with the matter also told the news agency that discussions on more lenient terms, including lower coupon and more time to repay, are continuing and no final decision has been reached.
India’s most-valuable unlisted start-up, BYJU’S, finally declared its audited results for FY21 after an 18-month delay, on September 14, 2022. The parent company, Think & Learn Pvt. Ltd, saw its consolidated losses widen by nearly 20 times to Rs 4,588.75 crore in FY21 from Rs 231.69 crore in FY20. Its revenues from operations grew marginally to Rs 2,280.26 crore in FY21 from Rs 2,189 crore in FY20.
Amidst all that has happened, creditors are getting concerned about the company’s ability to repay and many have sold down the loans, sources told Bloomberg.
In addition, the three-month Libor has surged more than 21 times this year, making the loan costlier for the Bengaluru-headquartered firm. Libor stands for London Interbank Offered Rate. It is a globally accepted key benchmark for interest rates. It indicates the borrowing cost between banks. The margin on the loan was raised by an additional 50 basis points this year after its parent company, Think & Learn Pvt., failed to get rated, the people quoted in the report said.
The loan is trading at 80 cents on the dollar on Wednesday after touching a record low of 64.5 cents in September, according to data compiled by Bloomberg.
Business Today reached out to the company but they declined to comment.
Also Read: BYJU's expects 3-fold growth in revenue, losses to be halved in FY22
Online edtech start-up, BYJU’S is endeavouring to restructure its loan worth $1.2 billion as it struggles to cope with steep losses and cost reduction targets, a report by Bloomberg revealed. The report further highlighted that the decacorn has appointed an adviser to discuss tweaks in covenants of the term loan B with creditors.
People familiar with the matter also told the news agency that discussions on more lenient terms, including lower coupon and more time to repay, are continuing and no final decision has been reached.
India’s most-valuable unlisted start-up, BYJU’S, finally declared its audited results for FY21 after an 18-month delay, on September 14, 2022. The parent company, Think & Learn Pvt. Ltd, saw its consolidated losses widen by nearly 20 times to Rs 4,588.75 crore in FY21 from Rs 231.69 crore in FY20. Its revenues from operations grew marginally to Rs 2,280.26 crore in FY21 from Rs 2,189 crore in FY20.
Amidst all that has happened, creditors are getting concerned about the company’s ability to repay and many have sold down the loans, sources told Bloomberg.
In addition, the three-month Libor has surged more than 21 times this year, making the loan costlier for the Bengaluru-headquartered firm. Libor stands for London Interbank Offered Rate. It is a globally accepted key benchmark for interest rates. It indicates the borrowing cost between banks. The margin on the loan was raised by an additional 50 basis points this year after its parent company, Think & Learn Pvt., failed to get rated, the people quoted in the report said.
The loan is trading at 80 cents on the dollar on Wednesday after touching a record low of 64.5 cents in September, according to data compiled by Bloomberg.
Business Today reached out to the company but they declined to comment.
Also Read: BYJU's expects 3-fold growth in revenue, losses to be halved in FY22