Bengaluru-based ride hailing and electric vehicle maker Ola is looking to raise over $500 million in debt from US investors in a so-called Term Loan B (TLB) deal, joining technology peers Oyo and Byju’s that have previously tapped this market to raise debt, said two people aware of the development. At the same time, Moody’s has assigned a B3 rating to the company’s proposed senior secured term loan. Ola’s wholly-owned subsidiaries — Ola Netherlands B.V. and Ola USA Inc. — are the borrowers. The proceeds from the term loan will be used for general corporate purposes, Moody’s noted. It added that Ola’s cash and cash equivalents of $279 million as of 31 March 2021 will just cover the company’s expected cash burn and scheduled debt maturities through December 2022.

Source: Mint November 30, 2021 00:24 UTC