Waymo Closes $5 Billion Term Loan, Its First Debt Financing
Waymo has closed a $5 billion term loan, the company's first debt financing. According to Waymo, the deal is an important step in its evolution into a scaling commercial enterprise.
- Waymo closed a $5 billion term loan, its first debt financing.
- PIMCO, Blackstone and Sixth Street were lead syndicated lenders, with Goldman Sachs as sole lead bookrunner.
- The loan follows a $16 billion equity investment closed earlier this year.
- Waymo launched service in its fifteenth U.S. city last month and announced new international cities.
- The capital is intended to expand its fully autonomous ride-hailing service in the U.S. and internationally.
Who is lending
PIMCO, Blackstone and Sixth Street took part as lead syndicated lenders, according to Waymo. Capital Group, Loomis Sayles and T. Rowe Price are listed as significant lenders.
Additional lenders named by the company include 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.
Waymo adds a note that participation by institutional lenders may represent or include investment funds, client accounts and/or investment vehicles managed or advised by the respective institutions or their affiliated entities.
Debt on top of equity
The loan follows a $16 billion equity investment that Waymo says it closed earlier this year to accelerate the expansion of the Waymo Driver, its autonomous driving system. The company says its momentum has allowed it to complement that equity with debt, which provides "additional financial flexibility" to strengthen its balance sheet.
Waymo points to its recent growth as part of the backdrop. Last month, it launched service in its fifteenth U.S. city and announced new international cities. The company says its commercial operations continue to grow at a record pace.
What the money is for
According to Waymo, the capital will accelerate the continued expansion of its fully autonomous ride-hailing service across the United States and internationally. The company says the financing supports its long-term flexibility to execute with speed, scale thoughtfully and continue leading the autonomous vehicle industry responsibly.
Waymo also says it remains focused on improving road safety and making transportation more accessible as it grows. It describes the lenders as "world-class financial partners who believe in our mission."
What it means
For Waymo, the deal adds a debt component to a funding base that so far consisted of equity. The company has not published the loan's interest rate, maturity or other terms in its announcement. Based on what Waymo states, the funds are meant to support expansion of its ride-hailing service in more cities, both in the U.S. and abroad.
