Shardul Amarchand Mangaldas & Co. advises J. P. Morgan Chase Bank N.A, Mizuho Bank, Ltd. and Deutsche Bank Securities Inc. to lend a ‘Term Loan B’ to the OYO Group
July 20, 2021
Shardul Amarchand Mangaldas & Co. acted for the arrangers, J. P. Morgan Chase Bank N.A, Mizuho Bank, Ltd. and Deutsche Bank Securities Inc. in connection with a maiden ‘Term Loan B’ raised by the OYO Group companies incorporated in Singapore, Netherlands BV and United States of America. ‘Term Loan B’ refers to a tranche of senior secured syndicated credit facility from global institutional investors. The offer was oversubscribed by 1.7 times and the OYO Group received commitments of close to $1 bn from leading institutional investors. The deal was upsized and increased by 10% to $660mn, as the business fundamentals yielded strong interest from investors despite the COVID 19 surge. The interest margin rate was also lowered by 25 basis points from the Initial Pricing Guidance to LIBOR+825 basis points.
OYO India is the first ever Indian company to raise debt in the US Term Loan B market. OYO India is also only Indian start-up to be publicly rated by Moody’s and Fitch. It was rated ‘B’ and ‘B3’ (stable outlook), by Moody’s and Fitch respectively.
The transaction team was led by Prashant Gupta, Partner, National Practice Head- Capital Markets; Shubhangi Garg, Partner; Pritha Chatterjee, Principal Associate; and Shweta Singh, Associate. IBC team was led by Misha, Partner; Mahima Sareen, Senior Associate; and Moulshree Shukla, Associate. IP team was led by Mukul Baweja, Partner; and Apoorva Murali, Principal Associate. Gunjan Shah, Partner, provided strategic inputs on the deal.
Latham & Watkins LLP and S&R Associates advised the OYO Group on English law and Indian law aspects, respectively. Linklaters LLP advised J.P Morgan Chase Bank N.A, Mizuho Bank, Ltd. and Deutsche Bank Securities Inc. on English law aspects.
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