ETtech
Illustration: Rahul Awasthi
Oyo Hotels & Homes has closed a debt financing round of $660 million from global institutional investors to service existing loans, according to people aware of the company’s aim to recover from the disruption caused by the pandemic’s second wave.
Wall Street investors such as Fidelity, Citadel Capital Management and Varde Partners have subscribed to Oyo’s term loan B (TLB), sources told ET.
Oyo did not confirm the name of the participating investors but said its TLB was “oversubscribed” almost 1.7 times, with a total commitment of nearly $1 billion.
On the back of strong interest from these institutional investors, Oyo increased the offering size by 10% to $660 million, from $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, the company said.