Oyo $660M refinancing talks with Apollo as IPO delayed

Our story unfolds with Oyo Hotels. They're in discreet discussions with Apollo Global Management Inc., looking to refinance their $660M loan, a strategic move aimed at buying time to reduce their debt due to a delay in their IPO.

• The Deal: Oyo's parent company, Oravel Stays Pvt, aims to delay their payment due date from 2026, negotiating for a generous five-year extension. This refinancing could be finalized as soon as next month.

• The Apollo Connection: This negotiation follows Oyo's first-ever profit, backed by the Softbank Group Corp. This achievement has led Fitch Ratings to predict a bright financial future for the company.

• A Look Back: Oyo was the first Indian unicorn to secure debt from foreign institutions, offering attractive terms to investors who considered them a risky gamble. In light of their recent profit, Oyo reports being offered cheaper financing options frequently, though none have been approved by the board yet. Apollo, for their part, has chosen to stay silent on the matter.

• The Climax: As of now, no final decision on the refinancing terms has been made.

• The Wait for the IPO: Oyo's IPO, which could have eased their debt burden without the need for refinancing, is still pending, adding a sense of suspense to our tale.

Oyo's founder, Ritesh Agarwal, is pushing for a fast-tracked IPO for the startup, of which Softbank owns a 47% stake. Other backers include Airbnb Inc. However, the IPO has yet to lift off.