20 April 2024
OYO Hotels is planning to secure up to $450 Mn through dollar bonds as it seeks to replace an existing high-cost loan amid delays in its stock-market debut, Bloomberg reported, citing a person close to the matter. As per the report, Oyo’s parent company Oravel Stays Ltd is in talks with bankers for raising $350 Mn-$450 Mn to repay its term loan B, which is due in 2026.
Oyo has declined to comment on the development.
The refinancing will extend the repayment timeline to five years. The company aims to finalise this process by September quarter. It is pertinent to note that in 2021, the company raised $660 Mn in term loan funding from global institutional investors. Late last year, OYO successfully concluded payments amounting to INR 1,620 Cr (approximately $195 Mn) to repurchase 30% of its outstanding Term Loan B (TLB). However, about $465 Mn is still outstanding. Term Loan B refers to a type of loan provided by financial institutions, typically used by companies for various purposes such as acquisitions, recapitalisations or refinancing existing debt. This comes weeks after the hotel giant was in talks to raise close to $400 Mn in a funding round from Malaysian sovereign wealth fund Khazanah Nasional Berhad. It must be noted that OYO last raised a primary round from Microsoft in 2021 at more than $9 Bn valuation.
OYO Hotels is planning to secure up to $450 Mn through dollar bonds as it seeks to replace an existing high-cost loan amid delays in its stock-market debut, Bloomberg reported, citing a person close to the matter. As per the report, Oyo’s parent company Oravel Stays Ltd is in talks with bankers for raising $350 Mn-$450 Mn to repay its term loan B, which is due in 2026.
Oyo has declined to comment on the development.
The refinancing will extend the repayment timeline to five years. The company aims to finalise this process by September quarter. It is pertinent to note that in 2021, the company raised $660 Mn in term loan funding from global institutional investors. Late last year, OYO successfully concluded payments amounting to INR 1,620 Cr (approximately $195 Mn) to repurchase 30% of its outstanding Term Loan B (TLB). However, about $465 Mn is still outstanding. Term Loan B refers to a type of loan provided by financial institutions, typically used by companies for various purposes such as acquisitions, recapitalisations or refinancing existing debt. This comes weeks after the hotel giant was in talks to raise close to $400 Mn in a funding round from Malaysian sovereign wealth fund Khazanah Nasional Berhad. It must be noted that OYO last raised a primary round from Microsoft in 2021 at more than $9 Bn valuation.
Stay Connected, Stay Informed –
Don’t miss out on exclusive updates, market trends, and real-time investment opportunities. Be the first to know about the latest unlisted stocks, IPO announcements, and curated Fact Sheets, delivered straight to your WhatsApp.