HOSPITALITY services and network OYO announced that it has secured term loan funding in the form of a US$600 million Term Loan B from a number of global institutional investors.

OYO Group Chief Financial Officer Abhishek Gupta said in a statement on Saturday (7/17) that we are very pleased with the overwhelming response from leading global institutional investors to our inaugural TLB funding round, even exceeding the set targets.

“The total funding achieved was 1.7 times higher than the initial target (oversubscribed), with a commitment of nearly US$1 billion from institutional investors. This funding increased by 10% to US$660 million, reflecting the high interest from investors despite the pandemic conditions,” he said.

He explained that the interest rate margin was reduced by 25 points from the Initial Pricing Guidance. 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.

“We are also grateful for the trust of investors 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 fundamentals and potential,” Abhishek noted.

The current OYO, he continued, is supported by good capital and on the right track to profitability. Our two largest markets have shown profitability even amid the economic challenges caused by COVID-19.

While Dr. W. Steve Albrecht, member of OYO’s Board of Directors and Chairman of the Audit Committee, added that currently, OYO has more than 100 thousand partners globally who are able to run their business successfully through technology support, products and OYO revenue management. JP Morgan, Deutsche Bank and Mizuho Securities are the lead arrangers for this loan. [antaranews/photo special]