Ritesh Agarwal_oyo
Ritesh Agarwal_oyo

OYO raising $600 Million from US institutional investors

The startup is raising $600 Million in a term loan B structure, it will utilise the funds to service its existing loan which are on higher interest rates.

On Thursday, Hospitality firm OYO is looking to raise $600 Million in debt from US institutional investors to serve its existing loan.

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.

When contacted, an OYO spokesperson declined to comment.

oyo founder

OYO founder and Group CEO Ritesh Agarwal had told employees in an email that the company is EBITDA positive in the first quarter or 2021 and earning the same gross profits globally in dollars since January 2021 as it did in the pre-COVID period.

“OYO is on a steady path of resurgence in 2021 and we are seeing signs of recovery across India, Europe, and Southeast Asia. OYO’s survival through the COVID crisis and our resurgence show that we are a company with strong fundamentals and high value potential,” he had said.

Moody’s Investors Service on Thursday said it has assigned a first-time B3 corporate family rating (CFR) to Oravel Stays Private Limited (OYO).

At the same time, Moody’s has 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 subsidiaries, it added.

The outlook is stable. The company will use the loan proceeds to refinance its debt and for general corporate purposes, Moody’s said.

OYO is backed by leading investors, including the SoftBank Vision Fund, Sequoia Capital, Lightspeed Ventures, Hero Enterprise, and China Lodging Group, amongst others.

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