(Reuters) – Airbnb Inc on Wednesday held a phone meeting with bankers to discuss extending an existing $1 billion debt facility as the home rental start-up grapples with a slowdown due to the coronavirus, a source who participated in the meeting said.
FILE PHOTO: The Airbnb logo is seen on a little mini pyramid under the glass Pyramid of the Louvre museum in Paris, France, March 12, 2019. .REUTERS/Charles Platiau/File Photo
The deliberations echo that of many U.S. companies that have been rushing to borrow more money and boost their cash coffers as the fallout from the pandemic threatens a prolonged downturn.
Airbnb’s current debt facility was agreed in 2016 and was led by JPMorgan (JPM.N), Citigroup Inc (C.N), Morgan Stanley (MS.N), Bank of America Corp (BAC.N), Goldman Sachs (GS.N) and Barclays (BARC.L).
Airbnb has never used the credit facility and it is not expiring for another year, but it is looking to extend that period to be prudent, according to the source.
Airbnb has $3 billion in cash, the person added.
Airbnb’s revenue in 2019 exceeded $4.8 billion, up 35% on year, excluding any foreign exchange impacts, and 2019 was the fourth straight year that the company was cash flow positive, according to the source.
The company, which said in September that it planned to list its shares in 2020, had expected earnings before interest, taxes, depreciation and amortization to break even or be positive in 2020 prior to the coronavirus pandemic, he said.
The source said Airbnb told bankers that models show the number of nights booked would recover