Waymo Boosts Private Debt Deal to $5 Billion in Push for Growth

Waymo increased the size of its inaugural debt raise to $5 billion, tapping lenders to help fuel the robotaxi company’s growth as it expands globally.

Pacific Investment Management Co., Blackstone Inc. and Sixth Street Partners were among investors who participated in the private loan, according to people familiar with the matter.

The deal priced at 5.25 percentage points over the benchmark rate, the people added, asking not to be identified discussing a private transaction. Waymo had earlier sought to borrow more than $3 billion for its first debt deal, Bloomberg previously reported.

The loan has been allocated and is expected to formally close soon, the people said. Waymo worked with Goldman Sachs Group Inc. to arrange the deal.

Representatives for Pimco, Blackstone and Goldman Sachs declined to comment. Representatives for Waymo and Sixth Street did not respond to requests for comment.

Waymo, Alphabet Inc.’s autonomous driving unit, is grappling with rising artificial-intelligence costs as it rapidly builds out its fleet of driverless cars. The company is expanding its services to more US cities, including Las Vegas and Detroit, while pushing into Asia with plans to bring its robotaxis to Japan and Singapore in the coming years. Waymo has set a goal of operating 1 million paid weekly rides this year.

Read More: How Robotaxis Are Making Headway, Glitches and All

Previously, Waymo relied on the equity markets to help fund its growth. The company raised $16 billion at a $126 billion valuation earlier this year, a funding round that reflected its rapid ascent as a robotaxi pioneer, and recently built a custom chip for its self-driving cars.