Bloomberg News

Alibaba Said to Get $1 Billion Club Loan for Yahoo Stake Buyback

July 09, 2012

Alibaba Said to Get Club Loan for Yahoo Stake Buyback

Alibaba Group Holding Ltd.'s Alibaba.com and Yahoo! Inc.'s Yahoo.com websites. Photographer: Nelson Ching/Bloomberg

Alibaba Group Holding Ltd. will sign a $1 billion four-year term loan with about seven banks on a club basis to fund a buyback of a stake of about 20 percent from Yahoo! Inc. (YHOO:US), a person familiar with the matter said.

China Development Bank Corp. is also providing a $1 billion four-year loan separately to help the country’s biggest e- commerce company repurchase the stake, the person said.

Of the original underwriters and lead arrangers on a $3 billion syndicated facility signed by the company earlier this year, HSBC Holdings Plc is not joining the new club, according to the person. The original members were Australia & New Zealand Banking Group Ltd. (ANZ), Credit Suisse Group AG, DBS Bank Ltd., Deutsche Bank AG, HSBC, and Mizuho Corporate Bank Ltd., according to data compiled by Bloomberg.

Alibaba’s revenue exceeded $1.8 billion in the first half, increasing more than 60 percent from the same period last year, the person said. Earnings before interest, tax, depreciation and amortization accounted for more than 40 percent of revenue in the first six months compared with 35 percent in the same period last year, according to the person.

The company signed a $3 billion facility, comprising $2 billion in a bridge loan and $1 billion in a three-year term loan, in February, the person said. The $2 billion bridge portion was replaced by a $1 billion three-year loan from CDB completed last month and the new $1 billion four-year loan from CDB, according to the person.

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

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


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