MT Educare (MTEL) along with its subsidiary Lakshya Educare, has been sanctioned a long term debt facility from Xander Finance (Xander) of Rs 110 crore. The initial disbursement proceeds from Xander of Rs 80 crore were utilized largely to repay short term debt raised by the company from various lenders who had provided loans to the company against promoter as primary security.
With the above deal, MTEL has been successfully able to convert most of its short term debt outstanding as on March 31, 2017, to long term debt. This transaction has also enabled MTEL to significantly reduce its average cost of borrowings to the mid-teens.
MT Educare is an education service company providing education support and coaching services. The company operates through conducting commercial training, coaching, tutorial classes and activities incidental and ancillary segment. Its business segments include School Section, Science Section, Commerce Section/University etc.