Byju's has completed a $1.2 billion, five-year covenant-lite term loan B (L+550, 0.75% Libor floor), with the loan pricing with an original issue discount of 98.5, sources said. Morgan Stanley and J.P. Morgan acted as lead arrangers on the transaction, which cleared in line with talk. The term loan and issuer will be unrated, but there is a margin step-up to L+600 if the parent does not obtain a credit rating from two of S&P Global Ratings, Moody's or Fitch within nine months after the close. Proceeds will be used to fund general corporate purposes offshore only, including to support business growth in North America and fund potential strategic opportunities. The borrower is Think and Learn Private Ltd. Bengaluru, India-based Byju's provides online educational services and study materials for state boards and government exams.
Terms:
| Borrower | Byju's (Think and Learn Private Ltd.) |
| Issue | $1.2 billion term loan B |
| UoP | GCP |
| Spread | L+550 |
| Libor floor | 0.75% |
| Price | 98.5 |
| Tenor | 5 years |
| YTM | 6.78% |
| Four-year yield | 6.86% |
| Call protection | 105, 103, 101 hard-calls in years one, two and three |
| Corporate ratings | Unrated |
| Facility ratings | Unrated |
| Recovery ratings | Unrated |
| Financial covenants | None |
| Arrangers | MS/JPM |
| Admin agent | MS |
| Px Talk | L+550/0.75%/98.5 |
| Sponsor | Private |
| Notes | Upsized by $700 million. |