Press Release: Strategic Transaction by 2U

2U Announces Agreement with Debtholders to Reduce Debt and Infuse New Capital

2U, a global leader in online education, has made a significant move to strengthen its financial position and continue its mission of providing high-quality education to learners worldwide. The company announced that it has entered into an agreement with its debtholders to eliminate over 50% of its debt and inject approximately $110 million of new capital into the business.

This financial transaction, facilitated through a Restructuring Support Agreement with lenders and noteholders, will reduce 2U’s debt to approximately $459 million and extend the maturity date of its loans. The company has also filed for Chapter 11 bankruptcy to implement the transaction smoothly and expects to complete the process by the end of September.

Paul Lalljie, the CEO of 2U, expressed optimism about the company’s future, stating that the new capital and healthier balance sheet will allow them to continue investing in their offerings and services. He emphasized that all educational programs and services will continue without interruption for partners and learners.

Upon emerging from Chapter 11, 2U will operate as a private company backed by its existing lenders and noteholders, including funds managed by Mudrick Capital Management, LP, Greenvale Capital LLP, and Bayside Capital, LLC. Brian Napack, a Strategic Advisor to the investment group, praised 2U’s role in the education ecosystem and its commitment to increasing education access.

The company has taken steps to ensure that its operations continue as usual during the restructuring process, with all programs proceeding as planned and no disruption for learners. 2U’s advisors, including legal counsel and financial advisors, are working to support the company through this transition.

2U, known for its online learning platform edX, connects millions of learners with affordable and career-relevant educational opportunities in partnership with leading universities worldwide. The company remains focused on its mission to deliver high-quality online education and create a better future for all through innovative learning solutions.

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