Softbank-backed OYO is set to re-file its much-awaited IPO as the global travel tech player is close to finalising its refinancing plans to raise up to $450 million via sale of dollar bonds, according to sources.

JP Morgan is the likely lead banker for the refinancing through the sale of dollar bonds at an estimated interest rate of 9 to 10 per cent per annum, a source adds.

In preparation for the refinancing, OYO has already moved its application with markets regulator SEBI to withdraw its current Draft Red Herring Prospectus (DRHP). The company intends to re-file an updated version of the DRHP after the bond issue.

Oravel Stays, OYO’s parent company, had last November prepaid a significant chunk of its debt amounting to Rs 1,620 crore through a buyback process. The buyback involved repurchasing 30 per cent of its outstanding Term Loan B of $660 million. The move brought down its outstanding loan amount to around $450 million.

A source closely involved in the company’s IPO plans has told the PTI: “The refinancing will result in material changes to OYO’s financial statements. Hence, as per existing regulations, it will need to revise its filings with the regulator.”

“Since the decision for refinancing is at an advanced stage, it doesn’t make sense to continue pursuing IPO approval with the current financials. So it’s prudent to withdraw the current application,” he has added.