After refinancing its current debt, Oyo will refile its IPO documents

May 18, New Delhi Leading hospitality company Oyo has refinancing its current $450 million Term Loan B (TLB) at a reduced interest rate and will refile its initial public offering (IPO) papers with market regulator Securities and Exchange Board of India (SEBI).

The travel-tech company Oravel Stays Ltd., which runs Oyo, is nearing completion on its refinancing plans. According to sources who spoke with IANS on Saturday, the company is thinking of issuing bonds for $350-450 million (Rs 2,908.5 crore–Rs 3,739.5 crore), with an estimated interest rate of 9–10 percent annually.

Through the issuing of these bonds, the company’s present $450 million Term Loan B (TLB) facility, which has a seven-year payback duration and an effective interest rate of 14%, would be drastically reduced.

“After accounting for the costs associated with the bond issuance, the refinancing is expected to result in annual interest savings of $8–10 million (Rs 66.4–Rs 83.0 crore) in the first year,” the sources said.

After that, Oyo expects to save $15–$17 million (about Rs 124.5–Rs 141.1 crore) annually, almost all of which would contribute to its net earnings, the sources said.

Oyo’s financial statements will alter significantly as a consequence of the refinancing.

The corporation will have to amend its filings with the regulator in accordance with current SEBI standards.

In this refinance, JPMorgan is the main lender.

The firm claims that it is not prudent to pursue IPO approval with the existing financials since the decision to refinance is advanced.

Sources claim that the whole refinancing process to extend the repayment period from the current 2026 to five years will be finished within the next three months.

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