Airbnb secured a $1 billion term loan from institutional investors, just a week after receiving the same amount, as the home-sharing company takes a hit from the collapse in demand for travel during the coronavirus pandemic.
The second funding round came from a group of more than 20 investors, including Silver Lake, the largest participant, Bloomberg reported, citing people with knowledge of the matter. Other investors are BlackRock, Eaton Vance, Fidelity Investments and T. Rowe Price.
“I deeply appreciate the confidence and trust that so many have shown in our company even as every sector in travel is going through the storm of the pandemic,” said Brian Chesky, Airbnb CEO and co-founder, in a statement. “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.”
Airbnb has suffered a blow from widespread travel restrictions and shelter-in-place orders underway around the world.
The company has instituted a number of measures to preserve its cash, including a hiring freeze, executive pay cuts and suspending marketing expenditures.
Airbnb had been planning to go public sometime this year but it's unknown whether those plans will go forward.
The company reportedly lowered its internal valuation to $26 billion. Airbnb had been expected to go public at a valuation as high as $42 billion.
The $1 billion loan that Airbnb received last week came from Silver Lake and Sixth Street Partners and was a mix of debt and equity.