Byju's term loan upsized to $1.2B; recommitments due today

A new term loan from Byju's has been upsized to $1.2 billion, from a planned $700 million, with recommitments due at noon ET today for pricing thereafter.

Price guidance on the five-year covenant-lite facility remains at L+550, with a 0.75% Libor floor, offered at 98.50, suggesting a yield to maturity of around 6.78%. The facility will have hard calls of 105, 103 and 101 in years one, two and three, respectively.

Lead arrangers on the deal are Morgan Stanley and J.P. Morgan.

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 post-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 upsize to the term loan has not impacted this use of proceeds.

The borrower is Think and Learn Private Ltd.

Bengaluru, India-based Byju's provides online educational services in India and provides study materials for state boards and government exams.