OYO Group’s Term Loan B Financing

Shardul Amarchand Mangaldas & Co. advised J. P. Morgan Chase Bank N.A, Mizuho Bank, Ltd. and Deutsche Bank Securities Inc. Latham represented OYO in the transaction.

OYO Group completed a Term Loan B financing.

‘Term Loan B’ refers to a tranche of senior secured syndicated credit facility from global institutional investors. The offer was oversubscribed by 1.7 times and the OYO Group received commitments of close to $1 bn from leading institutional investors. The deal was upsized and increased by 10% to $660mn, as the business fundamentals yielded strong interest from investors despite the COVID 19 surge. The interest margin rate was also lowered by 25 basis points from the Initial Pricing Guidance to LIBOR+825 basis points.

OYO plans to use the funds to refinance its existing facilities with long-term capital and to further strengthen its balance sheet.

OYO is a global platform that empowers entrepreneurs and small businesses with hotels and homes by providing full-stack technology that increases earnings and eases operations.

The Shardul Amarchand Mangaldas & Co. team was led by Partner Prashant Gupta (Picture), National Practice Head Capital Markets; Shubhangi Garg, Partner; Pritha Chatterjee, Principal Associate; and Shweta Singh, Associate. IBC team was led by Misha, Partner; Mahima Sareen, Senior Associate; and Moulshree Shukla, Associate. IP team was led by Mukul Baweja, Partner; and Apoorva Murali, Principal Associate. Gunjan Shah, Partner, provided strategic inputs on the deal.

The Latham deal team was led by Singapore partners Timothy Hia and Rajiv Gupta with associates Wen Yi Tan, Helen Liu and Aakash Sardana. Additional advice was provided by Chicago partner Nabil Sabki with associate John Reinert, and advice on tax matters was provided by New York partner Jiyeon Lee-Lim and Chicago partner Enrique Rene de Vera.

Involved fees earner: Enrique Rene de Vera – Latham & Watkins; Rajiv Gupta – Latham & Watkins; Timothy Hia – Latham & Watkins; Jiyeon Lee-Lim – Latham & Watkins; Haijing Liu – Latham & Watkins; John Reinert – Latham & Watkins; Nabil Sabki – Latham & Watkins; Aakash Sardana – Latham & Watkins; Wen Yi Tan – Latham & Watkins; Mukul Baweja – Shardul Amarchand & Mangaldas & Co.; Pritha Chatterjee – Shardul Amarchand & Mangaldas & Co.; Shubhangi Garg – Shardul Amarchand & Mangaldas & Co.; Prashant Gupta – Shardul Amarchand & Mangaldas & Co.; Apoorva Murali – Shardul Amarchand & Mangaldas & Co.; Mahima Sareen – Shardul Amarchand & Mangaldas & Co.; Gunjan Shah – Shardul Amarchand & Mangaldas & Co.; Moulshree Shukla – Shardul Amarchand & Mangaldas & Co.; Shweta Singh – Shardul Amarchand & Mangaldas & Co.;

Law Firms: Latham & Watkins; Shardul Amarchand & Mangaldas & Co.;

Clients: Deutsche Bank Securities; JP Morgan Chase & Co.; Mizuho Bank; Oyo;

Author: Sonia Carcano