JAKARTA - OYO today announced that it has secured term loan funding in the form of a USD600 million Term Loan B from a number of global institutional investors. The total funding achieved was 1.7 times higher than the initial target (oversubscribed), with a commitment of nearly USD 1 billion from institutional investors. This funding increased by 10% to US660 million, reflecting the high interest from investors despite the pandemic conditions.
OYO will utilize this term loan funding to accelerate the settlement of high-cost loans, strengthen balance sheets and other business objectives, including investment in product technology.
Moody's and Fitch have assigned a B3 and B rating to this secured loan. Both institutions are also confident in OYO's future projections, based on OYO's business model and financial profile that is able to survive with significant potential.
Abhishek Gupta, Group Chief Financial Officer of OYO explained, “We are very pleased with the overwhelming response from leading global institutional investors to our inaugural TLB funding round, even exceeding our target. We are also grateful for investors' trust in supporting OYO's mission to provide added value to hotel owners and operators around the world. This proves the strength and success of OYO products, as well as the company's strong and potential fundamentals. OYO is currently well-capitalized and on the right track to profitability. Our two largest markets have shown profitability even amid the economic challenges caused by COVID-19.”
As an information, JP Morgan, Deutsche Bank and Mizuho Securities are the lead arrangers for this funding. (LM)