Key facts
- Alphabet's Waymo closed a $5 billion debt financing deal, its first.
- The loan was secured from lenders including PIMCO, Blackstone, and Sixth Street.
- Goldman Sachs served as the sole lead bookrunner for the transaction.
- Waymo raised $16 billion in equity earlier this year at a $126 billion valuation.
- Waymo currently offers robotaxi services in 15 U.S. markets.
Alphabet's autonomous vehicle unit, Waymo, has closed a $5 billion term loan, its first debt financing, to support its commercial expansion. The loan was provided by a group of high-profile lenders including PIMCO, Blackstone, and Sixth Street, with Goldman Sachs acting as the sole lead bookrunner.
This debt financing marks a significant step for Waymo as it aims to scale its robotaxi operations within existing U.S. cities and expand into new markets in the United States, Europe, and Japan. A Waymo spokesperson stated the financing will provide financial flexibility to strengthen its balance sheet and capitalize on growth opportunities.
Previously, Waymo relied on capital from its parent company, Alphabet, and outside investors. Earlier this year, the company raised $16 billion in equity at a $126 billion valuation. Waymo currently operates robotaxi services in 15 U.S. markets and is testing its technology in London and Tokyo with plans for future launches.
The company's expansion has also drawn scrutiny from regulators, with the National Highway Traffic Safety Administration and the National Transportation Safety Board investigating Waymo robotaxis for incidents involving school buses and a child.