Order books on Alibaba seven-tranche US dollar bond at US$40b: source
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[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.
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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.
REUTERS
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