Oyo’s loan prepayment: Moody’s nearly doubles the EBITDA estimates

Global credit rating agencies Fitch and Moody’s have hailed the move by Oravel Stays – Oyo’s parent company – to buy back $195 million of its outstanding debt as positive.

Fitch said this move will improve Oyo’s EBITDA and they may take positive rating actions, while Moody’s expects Oyo to generate adjusted EBITDA of around $90-$100 million for fiscal 2024, nearly doubling the EBITDA estimate from $50-55 million expected earlier this year. year (May 2023).

Oyo recently started a partial early repayment of its debt through a buyback process. The company will repurchase approximately $195 million – approximately 30 percent – ​​of its outstanding $645 million Term Loan B (TLB), due in May 2026, using internal cash.