2U Convertible Holders Float Deal to Swap Notes for Secured Debt

A group holding most of 2U Inc.’s convertible bonds due in 2025 has proposed a deal that would allow creditors to swap into secured debt and extend the 2025 maturity, according to a statement.

• Transaction proposes holders of 2.25% bonds due 2025 and 4.5% notes due 2030 be given the option to swap into second-lien debt, third-lien convertible debt, or both, according to the statement
  • Proposes $300 million of second-lien debt maturing in May 2027 with 15% interest initially set at 2.25% cash interest floor plus 12.75% payment-in-kind interest; conversion of PIK to cash subject to performance metric ...