Oravel Stays Ltd, which operates travel-tech company Oyo, is close to finalizing its refinancing plans, where the company is looking to raise $350-450 million (Rs 2,908.5 crore to Rs 3,739.5 crore) by issuing bonds. is the estimated interest rate. 9-10 per cent per annum, sources told IANS on Saturday.
The issuance of this bond will significantly reduce the existing effective interest rate of 14 per cent on its existing $450 million Term Loan B (TLB) facility with a repayment period of seven years.
"Taking into account the costs associated with bond issuance, the refinancing is expected to yield annual interest savings of $8-1 million (Rs 66.4-83.0 crore) in the first year," according to sources.
Oyo then expects annual savings of $15-17 million (Rs 124.5 crore to Rs 141.1 crore), almost all of which will be added to its net profits, the source said.
The refinancing will result in significant changes to Oyo's financial statements.
As per existing SEBI rules, the company will need to modify its filings with the regulator.
JPMorgan is the lead banker for this refinancing.
According to the company, since the decision on refinancing is at an advanced stage, there is no point in continuing with the IPO approval with the current financial position.
According to sources, the deadline for the entire refinance process to extend the repayment deadline by five years from the current 2026 will be completed in the next three months.
The issuance of this bond will significantly reduce the existing effective interest rate of 14 per cent on its existing $450 million Term Loan B (TLB) facility with a repayment period of seven years.
"Taking into account the costs associated with bond issuance, the refinancing is expected to yield annual interest savings of $8-1 million (Rs 66.4-83.0 crore) in the first year," according to sources.
Oyo then expects annual savings of $15-17 million (Rs 124.5 crore to Rs 141.1 crore), almost all of which will be added to its net profits, the source said.
The refinancing will result in significant changes to Oyo's financial statements.
As per existing SEBI rules, the company will need to modify its filings with the regulator.
JPMorgan is the lead banker for this refinancing.
According to the company, since the decision on refinancing is at an advanced stage, there is no point in continuing with the IPO approval with the current financial position.
According to sources, the deadline for the entire refinance process to extend the repayment deadline by five years from the current 2026 will be completed in the next three months.