byju’s term loan amendment: Byju’s, lenders agree to amend $1.2 billion term loan by August 3

The steering committee of ad hoc term loan lenders for Byju’s – who collectively own more than 85% of the edtech’s $1.2 billion term loan B – said in a statement that both the parties have ‘agreed to work collaboratively toward a signed and completed term loan amendment (the “Amendment”) prior to August 3, 2023.’

“Successful execution of the Amendment would immediately solve for the loan’s acceleration and end all open litigation while avoiding further enforcement actions,” the lenders’ group said in a statement.

“This announcement is consistent with our stated goal of working constructively with Byju’s management to protect the value of the franchise. 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 upon timeline,” the steering committee said.

ETtech broke the news of Byju’s and its lenders reaching an agreement over the $1.2 billion term loan B in its July 24 edition.

A Term Loan B (TLB) typically is aimed at generating long-term returns on investment through interest payment to investors while the borrower will get time to pay the principal amount only at the end of the tenure.

A formal agreement with lenders is of considerable significance for Byju’s as its differences with the former over the $1.2 billion TLB have emerged as a key pain point for the firm, which has been engulfed in a series of crises, including the resignation of its auditor and representatives of its three key investors from the board.

Stay on top of technology and startup news that matters. Subscribe to our daily newsletter for the latest and must-read tech news, delivered straight to your inbox.