[LONDON] Order books on Chinese e-commerce giant Alibaba's seven-tranche US dollar bond at are US$40billion, according to a market source.
The books are set to effectively close at 09:00 EST, the source said.
Alibaba is looking to sell up to seven tranches including three-, five-, seven-, 10- and 20-year fixed rate tranches, and three- and five-year floating rate notes.
On Wednesday, initial price thoughts were set at 80bp area over Treasuries for the three-year fixed, 110bp area for the five-year, 135bp area for the seven-year, 150bp area for the 10-year and 175bp area for the 20-year. The price talk on the two floating rate note tranches are the 3-month Libor equivalent of the fixed rate notes.
Alibaba announced the highly anticipated multi-tranche debut bond deal on Wednesday, a trade expected to be around US$8 billion in size.
Active bookrunners Morgan Stanley, Citigroup, Deutsche Bank and JP Morgan are expected to price the bond on Thursday afternoon New York time.
Credit Suisse and Goldman Sachs are passive bookrunners.
Proceeds will repay an existing US$8 billion syndicated term loan facility and be used for general corporate purpose.