Oyo in Talks With Apollo Global for $660M Loan Refinancing

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Oyo in Talks With Apollo Global for $660M Loan Refinancing
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Oyo Hotels, a company backed by Softbank (OTC: SFTBY ) Group Corp., is in discussions with Apollo Global Management (NYSE: APO ) Inc. for a $660 million loan refinancing, as reported on Thursday. The move comes as the company, led by Ritesh Agarwal, seeks to extend its loan maturity beyond its 2026 deadline by an additional five years.

This development follows a delay in Oyo's initial public offering (IPO) and the announcement of its first annual profit. The parent company, Oravel Stays Pvt, is actively involved in these negotiations, which could significantly shape the financial future of Oyo.

According to InvestingPro data, Oyo Hotels has a market capitalization of 1103.04M USD, and its revenue growth has been accelerating, with the last quarter of 2023 showing an impressive 150.12% growth. This strong financial performance, coupled with a high return on invested capital, as noted in InvestingPro Tips, may provide a favorable backdrop for the ongoing loan refinancing discussions.

Softbank, owning a 47% stake in Oyo, is likely to be affected by these negotiations as well. The outcome could influence the company's debt management strategies moving forward, given the sizeable investment by the Japanese multinational conglomerate.

The loan refinancing talks are a critical move for Oyo as it navigates through its financial obligations and attempts to secure a more stable financial future. This decision could provide Oyo with additional time to manage its debt and potentially improve its financial standing before the original loan maturity in 2026.

InvestingPro Tips suggest that Oyo holds more cash than debt on its balance sheet, which could be a significant factor in these negotiations. Moreover, the company's strong earnings should allow management to continue dividend payments, a trend that has been maintained for six consecutive years.

The outcome of these negotiations will be closely monitored by stakeholders and investors due to its potential impact on both Oyo and Softbank's future operations. As one of the major shareholders, Softbank's investment could be significantly influenced by the results of these discussions.

For more insights like these, check out InvestingPro, which offers access to real-time metrics and tips for numerous companies. It currently lists 19 additional tips for Oyo Hotels, providing a wealth of information for potential investors and interested parties.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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