Airbnb raises another US$1 billion as coronavirus pandemic dims IPO prospects
- The home-sharing market leader is said to be raising cash by issuing first-lien debt, which has priority on its assets in case of a default
- The additional funds could help Airbnb weather the economic crisis and even make acquisitions without going public
Airbnb is raising cash by issuing first-lien debt, which has priority on the company’s assets in case of a default, and it comes from a group of more than 20 investors, including Silver Lake, the largest participant, according to people with knowledge of the matter.
Other investors are BlackRock, Eaton Vance Corp, Fidelity Investments and T Rowe Price Group, said the people, who asked not to be identified discussing a private deal.
Airbnb confirmed in a statement it had secured commitments for a US$1 billion syndicated loan, but did not name investors or elaborate on details.
San Francisco-based Airbnb, which makes money from homeowners who rent residences to travellers, had been planning to go public some time this year, but the outbreak of Covid-19 has sent markets into a tailspin and made an IPO less likely.
People around the world have put travel plans on hold as governments issue shelter-in-place edicts to stop the contagion, slowing sales growth and crimping profit at Airbnb. The additional funds could help Airbnb weather the economic crisis and even make acquisitions without going public.