 "Byju's")
Byju's lenders are asking for up to $200 million (about Rs 1,600 crore) in prepayment, The Economic Times (ET) has reported. In addition, they want a higher rate of interest from Byju's in order to restructure its $1.2 billion (9,600 crore) loan. The amount lent to the Bengaluru-headquartered company is currently under review.
Byju's has volunteered to raise the interest rate by about 200 basis points (bps), but it has not agreed to the prepayment clause so far.
Byju's has borrowed money from various lenders, including a number of US-based hedge funds, the report said, citing people familiar with the developments. One basis point is a hundredth of a percentage point.
Sources quoted in the report who spoke on the condition of anonymity said, "The prepayment is becoming a sore point in negotiations, as a section of lenders are refusing to play ball. However, it is possible that the lenders may finally agree to reduce the quantum of prepayment."
The lenders have asked Byju's for a fortnightly update on the amount of cash it holds. Currently, Byju's has $650 million in its overseas accounts and has about Rs 1,500 crore (nearly $183 million) in liquid funds in India, reported ET, quoting the people in the know.
Moreover, Byju's is also reaching the advanced stages of finalising a $600-700 million funding through a combination of equity and convertible notes. Existing investors, as well as some new ones, are expected to participate in this financing round.
