Active Stocks
Tue Apr 16 2024 12:34:37
  1. Tata Steel share price
  2. 159.90 -0.62%
  1. Infosys share price
  2. 1,430.00 -2.61%
  1. NTPC share price
  2. 356.10 -1.45%
  1. HDFC Bank share price
  2. 1,503.70 0.59%
  1. ITC share price
  2. 425.75 -0.04%
Business News/ Companies / Start-ups/  OYO raises $660 million term loan funding from global institutional investors
BackBack

OYO raises $660 million term loan funding from global institutional investors

OYO said the deal was 'upsized and increased by 10 per cent to USD 660 million, the company's fundamentals yielded strong interest from investors despite the virus surge'

The logo of OYO, India's largest and fastest-growing hotel chain, is seen installed on a hotel building. (REUTERS)Premium
The logo of OYO, India's largest and fastest-growing hotel chain, is seen installed on a hotel building. (REUTERS)

NEW DELHI : Hospitality firm OYO on Friday said it has raised TLB funding of USD 660 million (nearly 4,920 crore) from global institutional investors and the capital will be used for paring debt and other business investments.

The offer was oversubscribed by 1.7 times and the company received commitments of close to USD 1 billion from leading institutional investors, OYO said in a statement.

TLB refers to a tranche of senior secured syndicated credit facility from global institutional investors, it added.

Read Also: NCLAT allows plea for setting aside OYO's insolvency case against subsidiary

"The company will utilise these funds to retire its past debts, strengthen the balance sheet and other business purposes including investment in product technology," it said.

Commenting on the fundraise, OYO Group Chief Financial Officer Abhishek Gupta said, "we are delighted by the response to OYO's maiden TLB capital raise that was oversubscribed by leading global institutional investors... This is a testament to the strength and success of OYO's products at scale, our strong fundamentals and high-value potential."

He further said, "OYO is well capitalised and on the path of achieving profitability. Our two largest markets have demonstrated profitability at the slightest signs of industry recovery from the COVID-19 pandemic."

OYO said the deal was "upsized and increased by 10 per cent to USD 660 million, the company's fundamentals yielded strong interest from investors despite the virus surge."

JP Morgan, Deutsche Bank, and Mizuho Securities served as the lead arrangers for this financing, it added.

The hospitality chain said ratings agencies Fitch and Moody's have rated its senior secured loan 'B' and 'B3' (stable outlook), respectively, on the back of its "sound business model and resilient financial profile with significant potential upside".

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 16 Jul 2021, 11:03 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App