BYJU’S renegotiates debt financing, offers interest rate increase on term loan B
- ByStartupStory | April 7, 2023
According to sources, prepayment is currently a point of contention in the negotiations, as some lenders are reluctant to cooperate. However, it’s possible that lenders may agree to reduce the prepayment amount in the future. This article will be updated to include BYJU’S response. In an effort to renegotiate its debt financing agreements, BYJU’S offered to increase the interest rate on its $1.2 billion term loan B to its lenders last month. This move was prompted by lenders recalling loans due to a delay in providing audited financial statements for FY21, as per a report by The Economic Times.
The FY22 financials revisions of BYJU’S, the Indian edtech firm, are yet to be filed with the Registrar of Companies. The company’s financials for FY21 were filed after an 18-month delay with regular accounting bodies in India. Lenders have requested biweekly financial reports, and the company has $650 million in foreign accounts and $183 million in liquid money in India. BYJU’S is set to raise $700 million in fresh funding, with a flat valuation of $22 billion. The funding round may be closed in the next one to two weeks, with at least $400 million – $500 million earmarked for debt payments under one of the agreement’s provisions, according to The Financial Express.
In October 2022, BYJU’S raised $250 million in funding from its existing investors, such as Qatar Investment Authority, and others, following an $800 million investment from Blackrock, Sumeru Ventures, and others in March. The company also secured an unsecured loan of Rs 300 crore from Aakash in October 2021. With a valuation of $22 billion, the edtech startup reported a higher loss of Rs 4,564.38 crore in FY21 compared to the previous year’s loss of Rs 305.5 crore.
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