Debt

Debt Financing

Byju's  hires i-bankers to raise $500-M in debt

Mint  

Edtech unicorn Byju's has hired investment banks to raise a minimum of USD 500 million through Term Loan B (TLB) borrowings in the US. The firm will primarily use the funds for acquisitions. A part of the money raised will also be deployed as working capital. Institutional investors such as hedge funds, which seek higher yields and can tolerate longer investment horizons than traditional banks, offer such loans, which are similar in characteristic to high-yield bonds. TLBs typically have a floating interest rate, with tenures of 5-7 years.