Softbank-backed Oyo Hotels eyes $450 million bond sale for refinancing

Oyo Hotels is in talks to raise up to $450 million via dollar bonds, a person familiar with the matter said, as the once-high-flying Indian startup seeks to replace an existing high-cost loan amid delays in its stock-market debut.

Oravel Stays Ltd., as Oyo’s parent company is known, is in discussions with bankers for raising $350 million to $450 million to repay its term loan B, which is due in 2026, the person said, asking not to be named as the information is private.

The refinancing will extend the repayment timeline to five years, the person said. The company plans to complete the process in the September quarter.