{"id":645060,"date":"2013-03-04T07:18:22","date_gmt":"2013-03-04T12:18:22","guid":{"rendered":"http:\/\/www.pehub.com\/?p=189067"},"modified":"2013-03-04T07:18:22","modified_gmt":"2013-03-04T12:18:22","slug":"reuters-alibaba-eyes-up-to-8b-jumbo-loans","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/645060","title":{"rendered":"Reuters \u2013 Alibaba Eyes Up to $8B Jumbo Loans"},"content":{"rendered":"

Chinese e-commerce giant Alibaba Group<\/strong> is back in the loan market with an eye on a jumbo financing of up to $8 billion to refinance existing debts, barely a year after borrowing $4 billion in loans, according to Basis Point<\/em>. The borrower is said to have approached lenders seeking proposals for the loan, proceeds from which will refinance US$4bn in loans put in place last year as well as fund Alibaba’s obligations under a $7.1 billion share buyback deal it struck with Yahoo Inc. <\/strong>last May.<\/p>\n

(Basis Point) – Chinese e-commerce giant Alibaba Group is back in the loan market with an eye on a jumbo financing of up to $8 billion to refinance existing debts, barely a year after borrowing $4 billion in loans, according to sources.<\/p>\n

The borrower is said to have approached lenders seeking proposals for the loan, proceeds from which will refinance US$4bn in loans put in place last year as well as fund Alibaba’s obligations under a $7.1 billion share buyback deal it struck with Yahoo Inc (YHOO.O) last May.<\/p>\n

The Chinese internet company is refinancing its outstanding loans with a new borrowing to free itself from covenants that capped its borrowings to $4 billion.<\/p>\n

The additional $4 billion it is raising from the latest borrowing will finance its share buyback deal with Yahoo.<\/p>\n

As reported earlier, the buyback, agreed by Alibaba and Yahoo on 21 May 2012, will cost $7.1 billion and will be funded by $6.3 billion in cash and $800 million through a new issue of preferred stock by Alibaba to Yahoo.<\/p>\n

Sources expect Alibaba to pay lower pricing than on its loans signed last year, which were well received.<\/p>\n

The $4 billion in loans completed last year comprised a $1 billion four-year facility signed in July by eight banks and three other loans of $1 billion each signed in June.<\/p>\n

The three other loans include two bilaterals of three and four years from China Development Bank (CDB) CHDB.UL, and a $1 billion three-year facility from a group of 19 lenders. The three-year facility from 19 banks was part of a $3 billion dual-tranche debut which also comprised a $2 billion bridge that was taken out by CDB’s bilaterals.<\/p>\n

The $1 billion three-year loan from the 19 banks paid a top-level upfront fee of 300 basis points, while the $2 billion 12-month bridge paid 175 basis points.<\/p>\n

The $4 billion in loans last year funded the privatization of Hong Kong-listed Alibaba.com and financed the buyback of half of the 40 percent stake Yahoo held in Alibaba.<\/p>\n

(Reporting by Prakash Chakravarti)<\/p>\n

The post Reuters \u2013 Alibaba Eyes Up to $8B Jumbo Loans<\/a> appeared first on peHUB<\/a>.<\/p>\n

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Chinese e-commerce giant Alibaba Group is back in the loan market with an eye on a jumbo financing of up to $8 billion to refinance existing debts, barely a year after borrowing $4 billion in loans, according to Basis Point. The borrower is said to have approached lenders seeking proposals for the loan, proceeds from […]<\/p>\n","protected":false},"author":7428,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-645060","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/645060","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/7428"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=645060"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/645060\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=645060"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=645060"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=645060"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}