Waymo completes its first debt financing with a 5 billion dollar loan
Waymo completed a 5 billion dollar term loan, adding debt financing to the equity funding behind its driverless ride-hailing expansion. PIMCO, Blackstone and Sixth Street led the lender group, with Goldman Sachs arranging the transaction. The company intends to use the money to expand its service in the United States and internationally.
Economics & Markets··Evening
A first loan joins the financing mix
Waymo, the company providing driverless ride-hailing services, completed a 5 billion dollar term loan on 8 October. It is the company’s first debt financing. The loan is intended to support expansion of its autonomous service in the United States and internationally.[1], [2]
Chief financial officer Steve Fieler associated the loan with greater financial flexibility and a stronger balance sheet. He attributed the addition of debt to the company’s growing commercial operations.[1]
PIMCO, Blackstone and Sixth Street lead the lenders
PIMCO, Blackstone and Sixth Street participated as lead syndicated lenders. Capital Group, Loomis Sayles and T. Rowe Price were also named as significant lenders. Goldman Sachs was the sole lead bookrunner, arranging the financing transaction. Waymo said institutional participation can include funds, client accounts and investment vehicles managed or advised by those firms or their affiliates.[1]
Equity funding preceded the debt transaction
Waymo had already completed a 16 billion dollar equity investment this year to expand its Waymo Driver autonomous-driving system. The company said it began operating in its fifteenth US city last month and had announced further international cities. Fieler described the new loan as support for long-term flexibility as the service expands.[1]
