NEW YORK/BOSTON (Business) – Airbnb, the home rental business suffering due to the coronavirus halting global travel, secured a new $1 billion loan not long after closing a $1 billion debt deal.
The new loan deal’s parties included Silver Lake, Apollo Global Management, Sixth Street Partners, Oaktree Capital Management and Owl Rock.
Silver Lake is “one of the biggest players” in this new deal.
First lien debt terms were agreed upon- that means that these creditors would be paid first if Airbnb were to default. The loan is for a period of five years, with an interest rate which is 750 basis points over the Libor benchmark. It was sold at a slight discount to the loan’s par value assuring investors to earning a rate of around 12%.
The new deal’s advisers were Morgan Stanley and Goldman Sachs.
Last week, an Airbnb $1 billion bond deal with Silver Lake and Sixth Street included warrants for the two firms which can be exercised at an $18 billion valuation.
Airbnb showed an internal valuation of under $26 billion in early March, well below the $31 billion valuation from its 2017 Series F fundraising round.
Airbnb planned to list its shares in 2020, according to its announcement in September last year. Airbnb has not publicly commented on whether the turmoil in the travel industry will change those plans.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field.