ByteDance Reportedly Seeking a $9.5 Billion Loan
On September 2nd, as reported by Chinese media outlet Yicai, ByteDance is reportedly seeking a loan of $9.5 billion, poised to be the largest dollar-denominated corporate loan in Asia, excluding Japan.
This news comes on the heels of reports from last month that ByteDance was seeking a $5 billion loan for refinancing over a three-year term, a claim which ByteDance chose not to comment on.
Financial experts have noted that such dollar loan refinancing can help companies restructure their debt, both in terms of term structure and interest rates. It can also bolster business expansion and enhance capital reserves. The process allows companies to convert short-term debt into long-term debt, thereby alleviating immediate repayment pressures and stabilizing the repayment process. In times of fluctuating market interest rates, companies can seize opportunities to refinance at lower costs, thus minimizing overall interest expenses.
The methods for dollar loan refinancing can include syndicated loan refinancing, bond issuance, and direct negotiations with original lenders for adjustments.
In related news, ByteDance announced on the same day that it had completed its acquisition of the open-ear headphone brand, Oladance, achieving full ownership. All previous investors, including Black Ant Capital and Lanchi VC, have exited.
SEE ALSO: French Billionaire Xavier Niel Joins ByteDance’s Board of Directors
