Oyo Hotels & Homes, one of the largest hospitality firm in the country has closed a debt financing round of $660 million from global institutional investors, reports ‘Moneycontrol’.
The company did not unfold the names of the investors. Sources who are familiar to the matter revealed Fidelity Investments, Citadel Capital Management and Varde Partners took part in the round, as cited by the publication.
The company is looking forward to utilize these funds to pull back its past debts, strengthen the balance sheets along with developing the product technology.
Abhishek Gupta, Group Chief Financial officer, Oyo stated, “Oyo is well capitalized and on the path of achieving profitability. Our two large markets have demonstrated profitability at the slightest signs of the industry recovery from the COVID 19 pandemic.”
Oyo further affirmed that the offer was oversubscribed by 1.7 times. Moreover, it also gained commitments of close to $1 billion from the leading institutional investors.
As per reports, Oyo became the first Indian company to raise capital through the TLB route. TLB refers to a tranche of senior secured syndicated credit facilities from global institutional investors.
The lead arrangers for this financing were JP Morgan, Deutsche Bank and Mizuho Securities.
Furthermore, the company asserted that it possesses more than 100,000 hotel partners across 80 countries.
The development follows after the country’s National Company Law Appellate Tribunal (NCLAT) ruled out an insolvency case against the hospitality firm.
