Chicago, Jan. 10 – 2U, Inc. privately placed a notable $147 million of 4.5% senior convertible notes due 2030 via purchase agreements, according to an 8-K filing with the Securities and Exchange Commission.
The initial conversion premium is 40%.
The company is receiving $127 million in cash proceeds.
The conversion price is $9.00 per $1,000 note, with settlement in shares, cash or a combination at the company’s option.
There are three years of call protection, after which there will be a 130% hurdle.
ICR Capital LLC served as a financial adviser to 2U with respect to the notes.
The notes are being purchased by Greenvale Capital LLP and the Berg Family Trust.
Proceeds will be used to reduce secured term loan to $380 million, a $187 million reduction.
The company’s stock is up 13.43% on the week, as of Tuesday evening, after the refinancing deal that also included a term loan was announced on Monday.
2U is a Lanham, Md.-based education technology company.
| Issuer: | 2U, Inc.
|
| Amount: | $147 million
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| Issue: | Senior convertible notes
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| Maturity: | Feb. 1, 2030
|
| Trustee: | Wilmington Trust, NA
|
| Counsel to issuer: | Paul Hastings LLP
|
| Counsel to Greenvale: | Holland & Knight LLP
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| Coupon: | 4.5%
|
| Conversion premium: | 40%
|
| Conversion price: | $9.00
|
| Conversion rate: | 111.11
|
| Call features: | Three years of call protection, after which there will be a 130% hurdle
|
| Settlement date: | Jan. 11
|
| Distribution: | Private placement
|
| Stock price: | $6.44 on Jan. 6
|
| Market capitalization: | $561.51 million
|
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