Edtech major Byju’s has put two of its assets Epic and Great Learning on the chopping block to generate about $750 million-$800 million, as the company looks to repay the $1.2 billion Term Loan B, said people in the know.
Byju’s acquired Epic, the US-based kids learning company in 2021 for $500 million. The sale of Epic is expected to garner nearly $500 million, said sources requesting anonymity.
The company acquired the upskilling platform, Great Learning in 2021 for about $350 million. It has held preliminary talks with potential buyers, expecting to fetch about $400 million from the sale of the platform. The discussions for the sale of Great Learning are still in the early stages, said sources.
The edtech major has been working with bankers for the two deals, said the source. Byju’s has been looking to raise at least $700 million since February this year.
Byju’s did not respond to businessline’s query.
Term Loan B
Byju’s took a $1.2-billion Term Loan B for a tenure of five years with a yield to maturity (YTM) of 6.78 per cent in November 2021. It had skipped its $40-million loan repayment on June 5 of this year and later sued its lenders, alleging predatory tactics.
A Delaware court in the US gave a decision in favour of Byju’s as the court denied a request by Term Loan B lenders to investigate the matter of a $500-million transfer from its US-based subsidiary, Byju’s Alpha, to other entities.
In May, Byju’s signed a definitive agreement with Davidson Kempner to raise $250 million in structured instruments, linked with the future cash flows of Aakash Educational Services. However, less than half of the fund was released as some loan agreement covenants were not met.
According to news report, Byju’s has offered to repay the entire $1.2 billion Term Loan B (TLB) to its lenders in under six months.