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Airbnb seeks to raise more debt as IPO prospects dim amid global crisis

Bloomberg
Bloomberg4/8/2020 08:52 AM GMT+08  • 3 min read
Airbnb seeks to raise more debt as IPO prospects dim amid global crisis
The additional funds would give Airbnb an extra financial cushion as prospects dim for an initial public offering this year.
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(Apr 8): Airbnb Inc is in talks with investors to take on as much as US$1 billion ($1.4 billion) in additional debt after announcing a US$1 billion debt and equity deal Monday, according to people familiar with the matter.

The travel platform company announced Monday that it was raising US$1 billion in debt and equity from Silver Lake and Sixth Street Partners. The company has held discussions about raising US$500 million to US$1 billion more by either issuing first-lien debt, which would give its holders priority in case of a default, or a convertible note or selling an equity stake, said the people, who asked not to be identified because the information wasn’t public.

The additional funds would give Airbnb an extra financial cushion as prospects dim for an initial public offering this year. The money could help Airbnb weather the economic crisis brought on by the coronavirus pandemic without going public, and could also allow the company to make acquisitions, a strategy it has been weighing, people with knowledge of the matter told Bloomberg last month.

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