courtesy: business today
Softbank backed OYO is set to refile its highly anticipated Initial Public Offering (IPO) as the leader in the international travel technology approaches completion of refinancing plans to earn up to $450 million through the issue of dollar bonds, stated PTI, in its news report citing sources.
In order to refinance through selling dollar bonds, which will be most likely led by JP Morgan, at an expected interest rate of 9 to 10% annually, according to PT news article that cited its source.
The hotelier company has already submitted an application to markets regulator SEBI to withdraw its current draft and red herring prospectus (DRHP) in advance of refinancing. Post the bond offering, the company plans onto refiling a modified version of the DRHP, as per PTI.
The parent company of OYO, Oravel Stays Ltd, prepaid a sizeable portion of its debt in November through a buyback process totalling Rs. 1,620 crore. 30% of its outstanding Term Loan B, accumulating to $660 million, was repurchased as part of the buyback. This move has reduced the loan’s outstanding balance to about $450 million.
