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Opinion
Brian Chappatta

How Much Can Airbnb Damage the Mortgage Market?

Although the home-sharing company intersects two areas targeted by the coronavirus shutdown, the potential peril is hard to quantify.

The only thing for certain is that revenue, for the company and hosts, will be decimated.

The only thing for certain is that revenue, for the company and hosts, will be decimated.

Photographer: Joel Saget/AFP/Getty Images

Airbnb Inc. is raising a war chest to get it through the coronavirus pandemic.

Last week, the home-sharing company announced a $1 billion debt and equity deal from Silver Lake and Sixth Street Partners, with the second-lien securities reportedly offering an 11% to 12% interest rate. It turns out Airbnb was only getting started: This week, it secured commitments for a $1 billion syndicated loan from a group of more than 20 investors, including Silver Lake and more traditional money mangers like BlackRock Inc., Eaton Vance Corp., Fidelity Investments and T. Rowe Price Group Inc. According to people with knowledge of the situation, the funds could help Airbnb make it through this economic downturn without going public and might open the door to acquisitions.