Waymo Secures $5 Billion Loan—Its First—to Fuel Expansion Plans
Alphabet’s robotaxi company turns to lenders for the first time as it eyes new markets at home and abroad. ‘This is an important step in our evolution,’ the company says.
Waymo has secured a $5 billion term loan, its first-ever foray into debt financing, as the self-driving company accelerates plans to roll its robotaxi fleet into new markets and scale existing operations.
The funding, announced October 8, comes from a group of lenders led by PIMCO, Blackstone, and Sixth Street. Other participants include Capital Group, Loomis Sayles, T. Rowe Price, Apollo, Blue Owl, Diameter Capital Partners, Franklin Templeton, Fidelity Management & Research Company, HPS Investment Partners, and Oaktree. Goldman Sachs served as the sole lead bookrunner.
Today, Waymo closed a $5 billion term loan,
“Today, Waymo closed a $5 billion term loan, marking our first debt financing and an important step in our evolution into a scaling commercial enterprise,” Waymo Chief Financial Officer Steve Fieler said in a company announcement.
Waymo launched its ride-hailing service in its 15th U.S. city last month and recently announced plans to expand into additional markets overseas, including London and Tokyo, as it broadens its commercial footprint.
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“This capital will accelerate the continued expansion of our fully autonomous ride-hailing service across the United States and internationally,” Fieler said. “This financing supports our long-term flexibility to execute with speed, scale thoughtfully, and continue leading the autonomous vehicle industry responsibly.”
The loan follows a $16 billion equity raise
The loan follows a $16 billion equity raise completed earlier this year that valued the company at $126 billion. Until now, Waymo relied primarily on funding from parent company Alphabet and outside investors.
The $5 billion deal comes as Waymo faces a growing list of challenges tied to its rapidly expanding operations.
Source: www.inc.com
