According to media reports, global travel-tech company Oyo is set to make part payment of its Rs 1,620 crore debt through a buyback process. The initiative involves the repurchase of 30 per cent Oyo’s outstanding Term Loan B (TLB), reports added.
The debt repayment is scheduled for June 2026. The company plans to use cash from the balance sheet and a cash collateral account to fully fund the offer. Recently, the company reported its first-ever profit in the second quarter of 2023-24, amounting to Rs 16 crore.
If the full amount of the offer is successfully bought back, Oyo’s annual interest payments will be reduced by Rs 225 crore. The buyback process is open for bidding from 14 to 18 November. If the bid exceeds a certain amount, Oyo will buy back the loan on a pro-rata basis.
It’s debt paper closed at 90 cents per dollar on 13 November. In its last public filing, the company disclosed that it achieved operational profitability in fiscal year (FY23), with an adjusted EBITDA of Rs 277 crore.
Ritesh Agarwal, Founder of Oyo, informed employees that the company became cash flow positive in the fourth quarter of FY23 and expects to end the quarter with a surplus of nearly Rs 90 crore. Additionally, the company aims to achieve an adjusted EBITDA of almost Rs 800 crore for FY24.
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