Oyo talking to Apollo for $660 million refinance as IPO delayed

Oyo Hotels is in talks with Apollo Global Management to refinance a $660 million mortgage because the once-high-flying startup seeks extra time to chop debt following a delay in its preliminary public providing, in keeping with folks with information of the matter.

Oravel Stays Pvt, as Oyo’s father or mother firm is thought, is searching for to increase maturity to 5 years in contrast with the prevailing 2026 deadline, one of many folks stated, asking to not be named because the negotiations are non-public. A call may very well be reached as early as subsequent month, one other particular person stated.

The discussions with Apollo come after the Softbank Group Corp.-backed agency reported its first ever annual revenue, and Fitch Ratings sees earnings bettering as journey recovers. Oyo was the primary Indian unicorn to boost debt from overseas establishments and, on the time, it had supplied beneficiant phrases and upkeep covenants — a normal apply by corporations deemed dangerous by traders.

Due to an “increase in profits, we regularly get approached for cheaper financing options, but the company’s board hasn’t approved anything, including prepaying some portion,” a spokesperson for Oyo stated in an e-mail. A consultant for Apollo declined to remark.

There is not any last resolution on the refinancing phrases, the folks stated. Oyo’s mortgage traded at 101.50 cents on the greenback Thursday, in keeping with knowledge compiled by Bloomberg.

Oyo’s look forward to the IPO has proved to be longer than anticipated. Proceeds might have helped the lodging-booking firm pare its debt as an alternative of searching for refinancing, the folks stated.

The agency’s founder Ritesh Agarwal has been making an attempt for years to push by means of an IPO for the startup, which is 47% owned by Softbank. Airbnb Inc. can be certainly one of its backers.The startup had introduced submitting of contemporary paperwork for the IPO on April 1, with out disclosing the quantity it was searching for, the title of advisers or different monetary particulars. Oyo — as soon as valued round $10 billion and seen as India’s Airbnb-equivalent — had filed to boost 84.3 billion rupees ($1 billion) in its unique effort to go public in 2021 earlier than expertise valuations plunged and gutted startups worldwide.

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