Debt

Debt Financing

Oyo Hotels raises $660-M from Fidelity, Citadel Capital Management, Varde Partners

Economic Times  

Oyo Hotels & Homes has closed a debt financing round of USD 660 million from global institutional investors to service existing loans. Fidelity, Citadel Capital Management and Varde Partners have subscribed to Oyo's term loan B (TLB). The TLB was “oversubscribed” almost 1.7 times, with a total commitment of nearly USD 1 billion. Oyo had increased the offering size by 10% to USD 660 million, from USD 600 million initially. This resulted in the whole financing being raised at an interest rate of 825 basis points, compared to the initial price guidance of 850 basis points. According to the terms of the deal, Oyo has to pay back the principal loan amount after six years while paying interest at regular intervals. The funds will be used to retire the company's past debts, strengthen the balance sheet and other business purposes, including investment in product technology.