Waymo, the autonomous vehicle technology company owned by Alphabet, has closed a $5 billion loan. This marks the first time the company has used debt financing.
The loan, provided by a group of lenders including PIMCO, Blackstone, and Sixth Street, is intended to accelerate Waymo's commercial expansion. The company plans to grow within its current cities and enter new markets across the United States, Europe, and Japan.
Waymo described this debt financing as a significant step in its development into a "scaling commercial enterprise." Other lenders involved in the $5 billion loan include Capital Group, Loomis Sayles, T. Rowe Price, Apollo, Blue Owl, Diameter Capital Partners, Franklin Templeton, Fidelity Management & Research Company, HPS Investment Partners, and Oaktree. Goldman Sachs acted as the sole lead bookrunner.
Previously, Waymo relied on capital from its parent company and outside investors. In February, the company raised $16 billion in equity, which pushed its valuation to $126 billion.