Airbnb garners new $1b loan on top of $1b bond deal

REUTERS/Charles Platiau

Airbnb, whose home rental business is suffering as the coronavirus pandemic freezes global travel, has secured a new $1 billion loan just days after closing a $1 billion debt deal, the company said on Tuesday.

Parties to the new loan deal included private equity firms Silver Lake, Apollo Global Management, Sixth Street Partners, Oaktree Capital Management and Owl Rock, several sources with knowledge of the discussions told Reuters.

Silver Lake, one of the two investors in the debt deal days ago, is “one of the biggest players” in this new deal, said one of the sources.

The terms of the new deal are first lien debt, meaning these creditors would be paid first if Airbnb were to default, the sources said. The loan is for five years, with an interest rate of 750 basis points over the Libor benchmark, they said, adding that it was sold at a slight discount to the loan’s par value which would see investors earn a rate of around 12%.

The sources requested anonymity as the matter is private. Airbnb, Apollo, Oaktree, Silver Lake, Owl Rock and Sixth Street declined to comment.

Last week’s $1 billion bond deal with Silver Lake and Sixth Street included warrants for the two private equity firms that can be exercised at an $18 billion valuation.

That figure is below the $26 billion Airbnb cited as an internal valuation in early March and well below the $31 billion valuation it gained in its 2017 Series F fundraising round.

Airbnb said in September it planned to list its shares in 2020. It has not commented publicly whether the turmoil in the travel industry will impact those plans.

Reuters

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.