OYO raises $660M through debt funding.

According to a corporate release, the offering was 1.7 times oversubscribed, and the company got commitments totalling nearly $1 billion from renowned institutional investors.

Despite the virus outbreak, the offer was upsized by 10% to $660 million, as the company’s fundamentals drew substantial interest from investors. The initial Pricing Guidance reduced the interest margin rate by 25 basis points to LIBOR+825 basis points.

According to the company, the cash will be used to pay off past debts, strengthen the balance sheet, and other commercial goals, including product technology investment.

Moody’s and Fitch, two of the world’s biggest rating agencies, have publicly assessed OYO as the first Indian startup.

“We are delighted by the reaction to OYO’s debut TLB capital raising, which top global institutional investors oversubscribed,” said Abhishek Gupta, Group Chief Financial Officer, OYO. We are grateful for their faith in OYO’s aim of creating value for owners and operators of hotels and houses throughout the world.