Oyo seeks to raise $600 million loan
The Ritesh Agarwal-helmed company is scheduled for a lender call on May 21, and commitments for the loan are due by June 2. JPMorgan Chase & Co is arranging the deal
BusinessToday.In | May 21, 2021 | Updated 12:31 IST
Oyo looks to raise $600 million
Oyo Hotels is looking to raise a $600 million loan, following the ravaging second wave of coronavirus in the country that impacted its recovery plans. The company is offering unusually generous terms to investors as it looks to raise the loan.
Parent company Oravel Stays Pvt is discussing a five-year term loan B at 850 basis points over LIBOR (London Inter-bank Offered Rate), as mentioned in a report in Bloomberg. This is higher than the usual guidance given for recently issued term loan Bs in Asia-Pacific market. Oyo s loan also features maintenance covenants usually included only for companies that are considered risky by investors.