According to media reports, Byju’s is selling its assets Epic and Great Learning in order to raise USD 800 million to USD 1 billion in cash. This will help them meet their commitment to clear a USD 1.2 billion term loan B.
Byju’s is in talks with potential investors to sell assets and raise new capital. The deal range between USD 500 to USD 600 million from the sale of Great Learning, a higher education and upskilling firm and around USD 400 million from Epic.
Byju’s plans to repay its USD 1.2 billion loan in less than six months. It is are also seeking new funds from sovereign funds. Fresh funds will help Byju’s with its financial management and negotiations with Aakash Institute and creditor Davidson Kempner. Byju’s has been in talks with its loan creditors for some time after they requested immediate repayment.
Byju’s and the lenders have been involved in a legal dispute in the US courts. However, they have now agreed to negotiate new credit terms for the TLB. Byju’s has proposed a higher interest rate, which would result in a larger interest payout of USD 50 to USD 60 million.
Byju’s breached terms by not providing audited financials for FY22 and FY21. It was in negotiations for new loan terms with the lenders. Byju’s has promised to share audited results for FY22 by the end of September and for FY23 by December 2023. If the proposals are accepted, Byju’s will pay USD 300 million in the next three months and the rest in the following three months.
Epic and Great Learning are among a series of acquisitions made by Byju’s in 2021 when edtech received a massive tailwind due to Covid-19. The buyout of Toppr and Aakash was part of the same strategy by Byju’s to expand operations in India and abroad, going beyond K-12.
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