Hospitality and hotel aggregation platform OYO Hotels and Homes, on Friday, revealed that it has raised a debt funding of $660 million (almost ₹4,920 crore) in the form of TLB funding through global institutional investors. In case you are wondering what TLB means, it basically refers to a “tranche of senior secured syndicated credit facility from global Institutional investors,” as per the company itself.

While the names of the investors have not yet been disclosed, the startup says that it will be directing the funds towards retiring its past debts, while also strengthening its balance sheet, and boosting product technology. However, a few sources aware of the deal claim that Citadel Capital Management, Fidelity Investment, and Varde Partners have been in on the financing. The firm also says that the offer was oversubscribed by 1.7 times, adding that it received commitments of nearly $1 billion from “leading institutional investors.”

Speaking on the development, Group Chief Financial Officer at OYO, Abhishek Gupta, said, “We are delighted by the response to OYO’s maiden TLB capital raise that was oversubscribed by leading global institutional investors… This is a testament to the strength and success of OYO” products at scale, our strong fundamentals and high-value potential. Oyo is well capitalised and on the path of achieving profitability. Our two largest markets have demonstrated profitability at the slightest signs of industry recovery from the COVID-19 pandemic.”

The company also adds that the deal was “upsized and increased by 10 percent to $660 million”, claiming that the fundamentals at OYO extracted “strong interest” from investors even in the face of the pandemic. JP Morgan, Mizuho Securities, and Deutsche Bank are said to have been the lead arrangers in the deal.

The hospitality startup also said that its senior secured loan, which apparently rides on its sound business model and resilient financial profile with significant potential upside,” has been rated “B” and “B3” (stable to outlook), respectively, but ratings agencies Fitch and Moody’s.

This happens to be the latest news pertaining to the group after the NCLAT dismissed an insolvency case that had been filed against it by a group of hoteliers.