Airbnb secures new $1 billion loan

Airbnb said in September it planned to list its shares in 2020. (Reuters)
Short Url
Updated 15 April 2020

Airbnb secures new $1 billion loan

  • Loan secured just days after closing a $1 billion debt deal
  • Airbnb said in September it planned to list its shares in 2020

NEW YORK/BOSTON: Airbnb, whose home rental business is suffering as the coronavirus pandemic freezes global travel, has secured a new $1 billion loan just days after closing a $1 billion debt deal, the company said on Tuesday.
Parties to the new loan deal included private equity firms Silver Lake, Apollo Global Management, Sixth Street Partners, Oaktree Capital Management and Owl Rock, several sources with knowledge of the discussions told Reuters.
Silver Lake, one of the two investors in the debt deal days ago, is “one of the biggest players” in this new deal, said one of the sources.
The terms of the new deal are first lien debt, meaning these creditors would be paid first if Airbnb were to default, the sources said. The loan is for five years, with an interest rate of 750 basis points over the Libor benchmark, they said, adding that it was sold at a slight discount to the loan’s par value which would see investors earn a rate of around 12 percent.
The sources requested anonymity as the matter is private. Apollo, Oaktree, Silver Lake, Owl Rock and Sixth Street declined to comment.
The advisers on the new deal were Morgan Stanley and Goldman Sachs, Airbnb said.
Last week’s $1 billion bond deal with Silver Lake and Sixth Street included warrants for the two private equity firms that can be exercised at an $18 billion valuation.
That figure is below the $26 billion Airbnb cited as an internal valuation in early March and well below the $31 billion valuation it gained in its 2017 Series F fundraising round.
Airbnb said in September it planned to list its shares in 2020. It has not commented publicly whether the turmoil in the travel industry will impact those plans.


Egypt receives 1.4 million tourists in second half of 2020

Updated 23 January 2021

Egypt receives 1.4 million tourists in second half of 2020

  • Al-Anani said that 756 hotels and 1,039 tourist restaurants have obtained health and safety certificates since the start of the pandemic
  • Charges for trips to Luxor, Aswan, Sharm El Sheikh, Taba and Hurghada were reduced and ticket prices for all archaeological sites and museums were halved

CAIRO: As of December, Egypt received 1.4 million tourists since the resumption of the tourism activities at the beginning of July, bringing the total number of tourists during 2020 to 3.7 million.
Minister of Tourism and Antiquities Khaled Al-Anani revealed this during a meeting with the Egyptian Prime Minister, Mostafa Madbouly, to review the ministry’s plans to combat the coronavirus.
He said that 756 hotels and 1,039 tourist restaurants have obtained health and safety certificates since the start of the pandemic.
The minister also reviewed the domestic tourism initiative Winter in Egypt and the discounted prices in this initiative.
Charges for trips to Luxor, Aswan, Sharm El Sheikh, Taba and Hurghada were reduced and ticket prices for all archaeological sites and museums were halved.
The minister also reviewed the follow-up on the Cabinet’s decisions to support the tourism sector.
The minister discussed the support offered to the tourism sector, including the procedures to obtain credit facilities and to extend support though the Ministry of Social Solidarity to tourist guides until the end of December 2020.
On Friday, the Egyptian government cut the price of fuel for the aviation sector to support the tourism sector and stimulate aviation in Egypt. According to a statement, the reduction of 15 cents per gallon will continue until the end of this year.
Tourism revenues in Egypt have fallen by more than 69 percent over the past year, from $13.03 billion in 2019 to $4 billion in 2020, Al-Anani said.