Oyo is preparing to refile the draft papers for its much-antIcipated initial public offering (IPO), as the travel tech company is close to finalising its refining plans.

The company is looking to raise up to $450 Mn through the sale of dollarbonds, with JPMorgan expected to lead the refinancing effort. The bonds are anticipated to carry an interest rate of 9-10% per annum. 

OYO has already submitted an application to withdraw its current draft red herring prospects (DRHP) with the markets regulator SEBI. The company plans to refile an updated version of DRHP following the completion of its bond issuance.

Last year, OYO repaid INR 1,620 Cr (approximately $195 Mn) to repurchase 30% of its outstanding Term Loan B (TLB). However, around $465 Mn remains outstanding.

The company took the loan in 2021. The report said that the refinancing will extend the repayment timeline for OYO by five years. The company was to repay the remaining amount of the Term Loan B in 2026.

Term Loan B refers to a loan provided by financial institutions, typically used by companies for various purposes such as acquisitions, recapitalisations or refinancing existing debt.

Founded in 2012 by Ritesh Agarwal, OYO offers holiday homes, casino hotels, coworking spaces, budget hotels, corporate stays, and more. The startup has raised over $3.5 Bn in funding till date and counts the likes of Peak XV Partners and Microsoft among its investors.