Oyo, a hospitality company, has secured $660 million (about Rs 4,920 crore) in TLB fundraising from worldwide institutional investors. The funds will be utilised to reduce debt and make additional business initiatives. The offering was oversubscribed by 1.7 times and the business got commitments worth close to $1 billion from major institutional investors.
TLB stands for a senior secured syndicated credit facility from worldwide institutional investors, according to the company. "The money will be used to repay past debts, improve the balance sheet, and for additional commercial reasons, including product technological investment," the firm stated.
"We are thrilled with the reaction to OYO's inaugural TLB capital raising, which was oversubscribed by major global institutional investors," said Abhishek Gupta, the chief financial officer of Oyo Group. This is a tribute to OYO's product strength and scalability, as well as our solid fundamentals and high-value potential.
He further said, "Oyo is well capitalised and well on its way to profitability. At the first evidence of the industry's recovery from the Covid-19 epidemic, our two major markets have shown profitability."
The deal was "upsized and raised by 10% to $660 million," according to Oyo, and "despite the viral rise, the company's fundamentals produced considerable interest from investors."
The primary arrangers for this financing were JP Morgan, Deutsche Bank, and Mizuho Securities, according to the statement. Fitch and Moody's have given the hotel chain's senior secured loan a 'B' and a 'B3' (stable outlook) rating, respectively, based on its "strong business model and robust financial profile with considerable potential upside," according to the company.
Source: Times of India