Waymo has closed a $5 billion term loan, the company’s first debt financing, to fund expansion of its fully autonomous ride-hailing service in the U.S. and abroad. In a post by CFO Steve Fieler, Waymo named PIMCO, Blackstone and Sixth Street as lead syndicated lenders and Goldman Sachs as sole lead bookrunner. The company describes the loan as a step in its evolution into a scaling commercial enterprise.
Highlights
- $5 billion term loan, Waymo’s first debt financing
- Three lead syndicated lenders: PIMCO, Blackstone and Sixth Street
- Goldman Sachs served as sole lead bookrunner
- Follows a $16 billion equity investment Waymo closed earlier this year
Who Is Lending to Waymo?
Waymo says the lender group is organized in three tiers:
- Lead syndicated lenders: PIMCO, Blackstone and Sixth Street
- Significant lenders: Capital Group, Loomis Sayles and T. Rowe Price
- Additional lenders: Apollo, Blue Owl, Diameter Capital Partners, Franklin Templeton, Fidelity Management & Research Company, HPS Investment Partners and Oaktree
Waymo notes that institutional participation may include investment funds, client accounts or vehicles managed or advised by those institutions or their affiliates.
Debt Joins Equity on the Balance Sheet
The loan follows the $16 billion equity investment Waymo closed earlier this year to accelerate deployment of the Waymo Driver. According to Fieler, the company’s commercial momentum allowed it to add debt to its equity financing, giving it more financial flexibility and a stronger balance sheet.
Last month, Waymo launched service in its fifteenth U.S. city and announced new international cities. The company says its commercial operations are growing at a record pace.
How Will Waymo Use the Capital?
Waymo says the proceeds will fund continued expansion of its fully autonomous ride-hailing service across the United States and internationally. The company frames the financing as supporting its long-term flexibility to scale while keeping its focus on road safety and transportation access.
