Airbnb Gets $1 Billion Loan, Bringing Coronavirus Funding to $2 Billion

Airbnb Inc. secured a $1 billion loan from institutional investors, the company said, the second funding round for the home-sharing marketplace since the coronavirus pandemic devastated the global travel industry.
The San Francisco-based company didn’t disclose Tuesday the terms of the loan or the names of the investors. According to a person familiar with the matter, the loan is five years, and the interest rate will be 7.5%, plus a benchmark rate known as the London interbank offered rate, or Libor.
Airbnb had planned to start trading publicly this year. Instead, it faced escalating losses as travel ground to a halt, forcing it to raise money privately at a lower valuation than the $31 billion price tag of its last fundraising round in 2017, people close to the company have said.
Last week, Airbnb said it was raising $1 billion from private-equity firms Silver Lake and Sixth Street Partners. That investment came with a steep price tag: an interest rate of 10%, plus Libor, according to people familiar with the deal.
Those investors will also get warrants that can be converted into shares with a valuation for the company of $18 billion, a drop of almost half since 2017, the people said.
“All of the actions we have taken over the last several weeks assure that Airbnb will emerge from the storm of the pandemic even stronger, regardless of how long the storm lasts,” co-founder and Chief Executive Brian Chesky said.