By Chris Wack
2U Inc. shares were up 12% to $7.22 after the company said it has entered into an agreement to refinance its term loan, extending the maturity date from December 2024 to December 2026, and amending other terms.
In connection with amending and extending the term loan, the company has entered into agreements to secure $127 million of new capital from Greenvale Capital LLP, a current stockholder, and The Berg Family Trust, in the form of $147 million in principal amount of 4.50% senior unsecured convertible notes due 2030.
The company said it intends to use cash from its balance sheet and the proceeds from the issuance of the notes to reduce secured term loan debt by $187 million to $380 million.
The combination of reduced secured debt and extended maturities will significantly strengthen the company’s credit profile.
2U said it believes the improved financial profile will provide it with the flexibility and resources it needs to continue to thrive and succeed in the marketplace.
2U stock is up 31% in the past three months.
Write to Chris Wack at chris.wack@wsj.com
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