Bloomberg News

Banks Marketing Alibaba Loan Said to Extend Syndication Date

April 11, 2012

Banks marketing a $3 billion loan for Alibaba Group Holding Ltd. (1688) to other lenders in senior syndication have extended the deadline for responses to April 20 from April 13, two people familiar with the matter said.

The six banks hired to underwrite and arrange the loan in February also received their first commitment in marketing, of $300 million from a U.S. investment bank, the people said, declining to elaborate and asking not to be identified because the details are private. The date for banks to respond was extended to give lenders considering joining the facility more time to process information on the borrower, the people said.

John Spelich, a Hong Kong-based spokesman for Alibaba, wasn’t immediately available to comment on the financing when contacted at his office by telephone today.

Alibaba Group, run by billionaire Jack Ma, offered HK$13.50 ($1.74) a share for the 27 percent it doesn’t already own in its Hong Kong-listed unit, Alibaba.com Ltd., according to a Feb. 21 regulatory filing to the stock exchange. Australia & New Zealand Banking Group Ltd. (ANZ), Credit Suisse Group AG (CSGN), DBS Bank Ltd., Deutsche Bank AG (DBK), HSBC Holdings Plc (HSBA) and Mizuho Corporate Bank Ltd. signed the loan to finance the planned deal, according to the filing.

The two-part facility, split into a $2 billion one-year borrowing and a $1 billion three-year amortizing loan, is not expected to be marketed in general syndication to a wider group of lenders after the senior syndication phase closes, the people said today.

Lenders are being asked to join with commitments of either $300 million or more, $200 million or more and $100 million or more, the people said.

To contact the reporter on this story: Katrina Nicholas in Singapore at knicholas2@bloomberg.net

To contact the editor responsible for this story: Shelley Smith at ssmith118@bloomberg.net


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