[Funding alert] OYO to raise $600M from US institutional investors yourstory.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from yourstory.com Daily Mail and Mail on Sunday newspapers.
Moody s Investors Service has assigned a first-time B3 corporate family rating (CFR) to Oravel Stays Private Limited, popularly known as the hospitality chain Oyo. Moody’s CFRs are opinions of a corporate family’s ability to honor all of its financial obligations. The bond credit rating firm also assigned a B3 rating to the senior secured term loan to be issued by Oravel Stays Singapore Pte. Ltd, Oyo s wholly owned subsidiary. The proposed loan will be guaranteed by Oyo and many of its units, it said in a note on Thursday. Bloomberg reported Thursday that India’s Oyo is looking to raise $600 million in debt to bolster its finances, citing sources. This comes after the second wave of Covid-19 in India affected travel demand and hurt the company’s recovery effort, Bloomberg added. The loan issuer will be Oyo’s Singapore entity.
OYO to raise USD 600 mn from US institutional investors
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Hospitality firm OYO is looking to raise USD 600 million (over Rs 4,380 crore) in debt from the US institutional investors to service its existing loans, sources in know of the matter said on Thursday.
The company is raising USD 600 million in a term loan B (TLB) structure, the sources said.
The company is taking the TLB to service its existing loans which are on higher interest rates, they added.
TLBs typically mature within six to seven years and have a small repayment schedule during the term of the loan, with the remainder due on the maturity date.