Airbnb has protected the commitments of $1 billion for an associated team loan from the institutional investors. This emergency cash has arrived since the novel coronavirus has frozen the travel and carries on to hammer the vacation rentals as the holidaymakers are locked down at their home, and the global travel has been banned as well.
The names of the parties to Airbnb loan as well as the terms have not been disclosed. But Reuters, a media that cites many sources with sufficient knowledge, has reported that the private equity firms like Silver Lake, Apollo Global Management, Oaktree Capital Management, Sixth Street Partners, and Own Rock are those parties. Silver Lake was the biggest player among all of them, but the firms didn’t want to comment on this matter.
Earlier this month, the vacation rental giant declared an additional $1 billion raised in debt and equity from two private equity firms – Sixth Street Partners and Silver Lake. It said that the funds would provide enough support to its current project to invest for a long term, rather than a bailout in hard times.
The $1 billion term loan is like clearly focused on dealing with those negative impacts caused by the virus. The statement of Airbnb looks to paint an upbeat image of travelling in after-pandemic future, without the company is capable of defining exactly when this time might come.
The CEO of Airbnb, Brian Chesky, said that he appreciated the confidence as well as trusted that several had shown in their company even as all sectors in travel was going through that storm of the pandemic.