Oyo Hotels and Homes has raised debt funding of $660 million from global institutional investors through the term loan funding (TLB) route, according to a statement released by the firm. The Gurugram-based unicorn will utilise the funds to repay its past debts, strengthen its balance sheet, and other business purposes including investment in product technology, in a bid to revive its COVID-hit business.
The term loan funding route refers to a tranche of senior secured syndicated credit facilities from global institutional investors. With the current round of funding, Oyo is among the first Indian startups to raise capital through the term loan funding route.
The offer or the proposed issuance was oversubscribed by 1.7 times and the company received commitments of close to $1 billion from the leading global institutional investors. Oyo said in its statement that the deal was upsized and increased by 10 per cent to $660 million driven by strong interest from marquee investors.
“…delighted by the response to OYO’s maiden TLB capital raise that was oversubscribed by leading global institutional investors. We are thankful for the trust that they have placed in OYO’s mission of creating value for owners and operators of hotels and homes across the globe,” said Abhishek Gupta, Group Chief Financial Officer, OYO.
