Oyo Hotels is in talks with Apollo Global Management Inc. to refinance a $660 million loan as the once-high-flying startup seeks more time to cut debt following a delay in its initial public offering, according to people with knowledge of the matter.
Oravel Stays Pvt, as Oyo’s parent company is known, is seeking to extend maturity to five years compared with the existing 2026 deadline, one of the people said, asking not to be named as the negotiations are private. A decision could be reached as early as next month, another person said.
The discussions with Apollo come after the Softbank Group Corp.-backed firm reported its first ever annual profit, and Fitch Ratings sees earnings improving as travel recovers. Oyo was the first Indian unicorn to raise debt from foreign institutions and, at the time, it had offered generous terms and maintenance covenants — a usual practice by firms deemed risky by investors.
India’s First Private Market Benchmark. Providing institutional clarity to the unlisted securities market.