Olufemi Adeyemi
ByteDance is planning to pursue refinancing for a loan amounting to $5 billion.
According to a report by Bloomberg news on Friday,
Bytedance, the owner of TikTok, is making arrangements to extend the maturity
of a $5 billion loan by an additional three years, as indicated by sources
familiar with the situation.
Conversations with financial institutions are currently in
progress, as reported by individuals who requested anonymity due to the
sensitive nature of the topic.
Should the transaction be finalized, it would mark one of
the most substantial financial agreements made by a Chinese borrower this year.
According to a Bloomberg report, the company initially
obtained $5 billion in 2021 through a mix of term loans and revolving credit
facilities, taking advantage of favorable interest rates.
At that time, ByteDance primarily utilized the capital for
debt repayment and to enhance its cash reserves for ongoing business
activities.
Discussions regarding refinancing are currently in progress,
and ByteDance has chosen not to provide any comments on the situation.
Established in 2012, ByteDance has swiftly emerged as a
significant entity in the social media sector, especially with its
video-sharing platform Douyin in China and TikTok on a global scale.
The company is also venturing into new domains such as
e-commerce and generative AI, both within China and internationally.