Waymo taps Pimco, Blackstone to raise $3 billion debt, Bloomberg News reports
Waymo seeks first debt raise
Sept. 2 (Reuters) - Alphabet's Waymo is in the final stages of talks to raise debt for the first time, seeking more than $3 billion from lenders including Pacific Investment Management and Blackstone, Bloomberg News reported on Wednesday, citing people familiar with the matter.
The debt would be unrated and could price at more than 500 basis points over the benchmark, the report said.
Robotaxi expansion and funding backdrop
Competition in the robotaxi sector has been heating up as Waymo jostles with Amazon's Zoox and Tesla's self-driving vehicles to emerge as leaders in a market with huge potential.
The company is turning to debt as it expands its driverless fleet and faces rising AI costs, the Bloomberg report said.
Waymo has been working with Goldman Sachs and aims to finalize the deal in the coming days, though terms could still change, the report said. Waymo and Goldman Sachs did not immediately respond to a Reuters request for comment. Blackstone, Pimco and Sixth Street Partners declined to comment.
In February, Waymo raised $16 billion in a funding round that valued the startup at $126 billion, nearly tripling its valuation in less than two years.
