Waymo raises over $3 billion in first debt deal with Pimco and Blackstone

Waymo, Alphabet Inc.’s autonomous driving unit, is in the final stages of talks to raise more than $3 billion in its first debt deal. The unrated loan, which could price at over 500 basis points above the benchmark, is being provided by lenders including Pacific Investment Management Co., Blackstone Inc., and Sixth Street Partners to support Waymo's global robotaxi expansion.

Waymo debt financing

• ▪Waymo is in the final stages of talks to raise debt for the first time, seeking more than $3 billion
• ▪Waymo, Alphabet Inc.'s autonomous driving unit, is raising debt to support its goal of becoming the leading robotaxi company globally

Pimco investment participation

• ▪Blackstone Inc. and Sixth Street Partners are among the lenders providing the loan to Alphabet Inc.'s autonomous driving unit Waymo
• ▪Pacific Investment Management Co. is among the lenders Waymo is tapping for its first debt deal of more than $3 billion

Unrated loan terms

• ▪The debt raised by Alphabet Inc.'s autonomous driving unit Waymo will be unrated
• ▪The debt raised by Alphabet Inc.'s autonomous driving unit Waymo could price at more than 500 basis points over the benchmark

2 sources