Edtech major Byju's, lenders agree to amend terms for $1.2 billion loan

Edtech major Byju’s and its lenders have agreed to amend the term loan of $1.2 billion.

The ad hoc term loan’s steering committee — which collectively owns more than 85 per cent of the Byju’s loan — said that the lenders and Byju’s have agreed to work collaboratively. This is towards a loan-term amendment prior to August 3, 2023.

A statement from the steering committee said, “We are pleased to make progress with Byju’s towards a completed term loan amendment. This announcement is consistent with our stated goal of working constructively with Byju’s management to protect the value of the franchise.”

The statement further said, “We look forward to completing the loan amendment over the next two weeks and are committed to doing our part to deliver on our agreed timeline.”

Houlihan Lokey serves as financial advisor to the term loan lender group and Kirkland & Ellis LLP, Cahill Gordon & Reindel LLP, and Shearman & Sterling LLP are serving as legal advisors.

The development comes as a breather for the edtech major, which has been battling with lenders. Also, its auditors resigned and board members stepped down — these are among other issues.

In the last few weeks, however, some positive news has started to come from the edtech major.

For now, the company announced the formation of an advisory council.

Former State Bank of India (SBI) chief and current chairman of BharatPe Rajnish Kumar and former chief financial officer (CFO) of Infosys Mohandas Pai have joined the advisory council.

Meanwhile, the company also vacated its office space in Bengaluru. According to media reports, this was one of the largest premises of the company in the city.

This is part of the cost-cutting measures that the company has undertaken. It included laying off employees as well.

An attempt to get a company statement did not elicit any response.

“The company had last year stated its intent to cut costs by taking several initiatives. This is part of that,” said a source.