By Joshua Franklin, Lawrence Delevingne and Jane Lanhee Lee
NEW YORK/BOSTON (Reuters) – 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. Apollo, Oaktree, Silver Lake, Owl Rock and Sixth Street declined to comment.
The advisers on the new deal were Morgan Stanley and Goldman Sachs, Airbnb said.
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.
(Reporting by Joshua Franklin in New York, Lawrence Delevingne in Boston and Jane Lanhee Lee; Additional reporting by Chibuike Oguh in New York and Aakriti Bhalla in Bengaluru; Editing by Stephen Coates, Edwina Gibbs and Sherry Jacob-Phillips)