Why 2U Stock Crushed the Market This Week
Next-generation education specialist 2U (NASDAQ: TWOU) gave a master class on how to increase a stock's price this week. Over the course of the five trading days, the company's shares rose in excess of 15%, according to data compiled by S&P Global Market Intelligence, trouncing the less than 3% increase of the S&P 500 index. Two developments were mainly responsible for that outperformance.
The first was announced on Monday. 2U said that it has secured new financing, and will be refinancing its term loan, an important source of funds. Its maturity date has also been extended; it is now December 2026 instead of December 2024.
As for the new financing, this consists of $127 million of new capital from existing institutional shareholder Greenvale Capital. And the Berg Family Trust is providing $147 million in senior unsecured convertible notes with an interest rate of 4.5%. Those notes mature in 2030.
Source Fool.com
