Airbnb receives $1 billion debt facility from banks

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Apartment sharing firm Airbnb has secured a one billion dollar debt facility from big US banks to help its new services and to finance its expansion plans, according to a source close to the company.

JPMorgan, Citigroup, Morgan Stanley and Bank of America led the debt deal, says the source.

Airbnb, which has stated it will achieve profitability this year, raised more than $100 million in a funding round late last year.

The deal was reported by Bloomberg earlier on Wednesday.

To date, representatives at JPMorgan, Citigroup, Morgan Stanley and Bank of America have not commented on the deal.

Priceline, Expedia and many other travel companies have lately been facing pressure in their hotel bookings businesses from the popularity of startups like Airbnb.

SOURCE: Reuters.

Larry Banks is a keen follower of technology and finance. He has worked for a variety of online publications, writing about a diverse range of topics including mobile networks, patents, and Internet video delivery technologies.

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