Bloomberg News

Alibaba Said to Consider More Underwriters for $3 Billion Loan

February 22, 2012

Feb. 22 (Bloomberg) -- Alibaba Group Holding Ltd. may seek more banks to underwrite a $3 billion loan signed yesterday with six lenders, according to two people familiar with the matter.

The loan will be split into a $2 billion short-term facility and a $1 billion, three-year term loan, one of the people said, asking not to be identified as details are private. Alibaba Group is offering to pay a margin on the term loan of 400 basis points to 450 basis points more than the London interbank offered rate, the person said.

China’s biggest e-commerce company may consider repaying the short-term loan using cash reserves, the people said.

To contact the reporter on this story: Wendy Mock in Hong Kong at wmock3@bloomberg.net

To contact the editor responsible for this story: Katrina Nicholas at knicholas2@bloomberg.net


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