A string of private equity majors have agreed a $1bn loan for struggling home rental business Airbnb, just days after the company secured a $1bn debt deal.
Silver Lake, one of the two backers of last week’s debt deal, is “one of the biggest players” in the loan package according to Reuters, which cited unnamed sources.
It said Apollo Global Manegement, Sixth Street Partners, Oaktree Capital Management and Owl Rock were also backers of the loan.
The first lien debt deal ensures the firms will be paid first in the case of an Airbnb default, the sources added.
A statement from Airbnb co-founder and CEO Brian Chesky said, “I deeply appreciate the confidence and trust that so many have shown in our company even as every sector in travel is going through the storm of the pandemic.
“We know travel will return and rather than merely hunkering down, the support we have received will allow Airbnb to continue moving forward as we invest in our community.
“All of the actions we have taken over the last several weeks assure that Airbnb will emerge from the storm of the pandemic even stronger, regardless of how long the storm lasts.”
The company, which allows people to rent their own homes on short or long-term basis, has been hit hard by the dearth of travel, holidaymaking and need for people to stay at home to maintain social distancing amid the COVID-19 pandemic.
Earlier this month it emerged that tech-focused Silver Lake was planning to brave the current coronavirus-affected fundraising market by attempting to raise at least $16bn for a new flagship buyout fund.
Silver Lake could have the opportunity to pick up assets on the cheap through the fund due to the global Covid-19 pandemic, Reuters said, citing unnamed sources it said were familiar with the matter.
It said Silver Lake was preparing to launch the fund in the second quarter, eyeing between $16bn and $18bn.
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