Hospitality firm OYO on Friday said it has raised TLB funding of $660 million (nearly Rs 4,920 crore) from global institutional investors and the capital will be used to pare debt and other business investments.

The offer was oversubscribed by 1.7 times and the company received commitments of close to $1 billion from leading institutional investors, OYO said in a statement.

TLB refers to a tranche of senior secured syndicated credit facility from global institutional investors, it added.

"The company will utilise these funds to retire its past debts, strengthen the balance sheet and other business purposes including investment in product technology," it said.

Commenting on the fundraise, OYO Group Chief Financial Officer Abhishek Gupta said, "we are delighted by the response to OYO's maiden TLB capital raise that was oversubscribed by leading global institutional investors... This is a testament to the strength and success of OYO's products at scale, our strong fundamentals and high-value potential." He further said, "OYO is well capitalised and on the path of achieving profitability. Our two largest markets have demonstrated profitability at the slightest signs of industry recovery from the COVID-19 pandemic."

OYO said the deal was "upsized and increased by 10 per cent to $660 million, the company's fundamentals yielded strong interest from investors despite the virus surge." JP Morgan, Deutsche Bank, and Mizuho Securities served as the lead arrangers for this financing, it added.

The hospitality chain said ratings agencies Fitch and Moody's have rated its senior secured loan 'B' and 'B3' (stable outlook), respectively, on the back of its "sound business model and resilient financial profile with significant potential upside".

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