Alibaba Announces $8 Billion Bond Sale
The company has existing credit lines and loans equal to approximately $11 billion. The report noted that a $4 billion loan obtained in 2013 charged 2.75 percentage points above LIBOR. No details were released on the expected coupon rate for the new bonds.
According to the report, the bonds have been given an investment-grade S&P rating of A+.
Bloomberg noted that "Morgan Stanley, Citigroup Inc., Deutsche Bank AG and JPMorgan Chase & Co. will market the debt to investors starting next week, according to a person with knowledge of the matter, who asked not to be identified, citing lack of authorization to speak publicly."
The news comes shortly after the company’s record-setting Singles Day sales of $9.3 billion.
Alibaba recently traded at $114.97, down 2.8 percent.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.