OYO Raises $ 660 Million in Debt Financing from Institutional Investors to Jumpstart COVID Affected Businesses and Pay Off Debt
Hotel company Oyo Hotels and Homes has raised $ 660 million in debt financing from global institutional investors via term loan financing (TLB), according to a statement released by the company. The Gurugram-based unicorn will use the funds to pay off past debts, strengthen its balance sheet and for other business purposes, including investing in product technology, with the aim of reviving its COVID business.
The term loan financing channel refers to a tranche of a senior secured syndicated credit facility from global institutional investors. With the current funding cycle, Oyo is one of the first Indian startups to raise capital through the term loan financing route.
The proposed offer or issue was 1.7 times oversubscribed and the company received pledges of nearly $ 1 billion from the world’s leading institutional investors. Oyo said in his statement that the deal was broadened and increased by 10% to $ 660 million thanks to strong interest from well-known investors.
â… We are delighted with the response to OYO’s first TLB capital increase which was oversubscribed by major global institutional investors. We are grateful for the confidence they have placed in OYO’s mission to create value for hotel and home owners and operators around the world, ” said Abhishek Gupta, Group Chief Financial Officer. , OYO.
“… Our two largest markets have demonstrated their profitability at the slightest sign of an industry recovery after the COVID-19 pandemic,” he added.
âAs a member of the OYO Board of Directors, it is encouraging for me to see the strong interest of the investment community in the company, which has enabled OYO to become the first Indian startup to be rated at independently by the world’s major credit rating agencies – Moody’s and Fitch, âsaid Dr. W. Steve Albrecht, OYO Board Member and Chairman of the Audit Committee.
Founded in 2013 by Ritesh Agarwal, Oyo is today a leading multinational chain of hotels, guest houses and leased and franchised living spaces. Initially, Oyo consisted of budget hotels only, but gradually the startup expanded globally with vacation homes, hotels and rooms in various countries.