2U enters five-year $250 million term loan at Libor plus 575 bps

By Wendy Van Sickle

Columbus, Ohio, May 22 – 2U, Inc. entered into a credit agreement on Wednesday providing for a five-year $250 million term loan, according to an 8-K filing with the Securities and Exchange Commission.

Borrowings bear interest at Libor plus 575 basis points, with a 1% Libor floor.

The borrower may add up to $50 million of incremental term loans.

Owl Rock Capital Corp. is the administrative agent and collateral agent, and Owl Rock Capital Advisors LLC is the lead arranger and bookrunner.

The company will be required to repay borrowings with proceeds of certain sales of assets, issuances of debt and other occurrences.

The Lanham, Md., education technology company partners with colleges and universities to bring their degree programs and credit-bearing courses online.

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