OYO 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 is higher 1,7 times the original target (oversubscribed), with commitments reaching almost USD 1 billion from institutional investors.
This funding increased by 10% to US660 million, reflects the high interest from investors even in the midst of a pandemic. The interest rate margin was reduced by 25 points from the Initial Pricing Guidance.
OYO will utilize this term credit funding to accelerate high-cost credit settlements, strengthen balance sheets and other business objectives, including investment in product technology.
Moody's and Fitch have assigned B3 and B ratings to this collateralized loan. The two institutions are also confident about OYO's projections going forward, based on OYO's business model and viable financial profile with significant potential.
Comment on this funding, Abhishek Gupta, OYO's Group Chief Financial Officer explained that we are very pleased with the overwhelming response from leading global institutional investors to the company's inaugural TLB funding round., even exceeding the predetermined target. He is 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 strong and potential company fundamentals. OYO is currently well-capitalized and on the right track towards profitability. Our two largest markets have shown profitability even amid the economic challenges caused by COVID-19," said Gupta.
OYO presents technology-based products that can drive revenue and profit increases quickly and sustainably, through operational efficiency for its partners in Indonesia and around the world.
These products include CO-OYO, OYO OS, OYO YO!, OYO Tariff Manager, OYO Secure, OYO Wizard and OYO App for their users. With more than 91 million downloads, OYO App is currently the top three traveling apps (Q1 2021) globaly*.
OYO OS is used by more than 96% partners and property staff worldwide for check-in and day-to-day operations.
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