Shearman And Sterling

News June 28, 2021

2U’s $475 Million Acquisition Financing

Shearman & Sterling advised Morgan Stanley & Co. as debt advisor on a $475 million term loan B facility for 2U agented by Alter Domus, to finance the acquisition of edX and for working capital and other general corporate purposes.

2U operates as an education technology company in the United States, Hong Kong, South Africa, and the United Kingdom. The company operates in two segments, degree program and alternative credential. The degree program segment provides the technology and services to nonprofit colleges and universities to enable the online delivery of degree programs. This segment targets students seeking an undergraduate or graduate degree. The alternative credential segment offers online short courses, and technical and skills-based boot camps through nonprofit colleges and universities. This segment targets students seeking to reskill or upskill through shorter duration and lower-priced offerings.

The Team