China’s Meituan is looking to raise up to $2 billion through a dollar bond deal, according to two sources familiar with the matter and a term sheet seen by Reuters on Tuesday. The company is offering bonds in two tranches, a 3.5-year bond and a 5-year bond, with $1 billion targeted for each. Initial pricing guidance suggests the 3.5-year bond will be set at 3-year Treasuries plus approximately 145 basis points, while the 5-year bond will be priced at 5-year Treasuries plus around 160 basis points.
Meituan, a food delivery giant, plans to use the proceeds primarily to refinance upcoming offshore debt. According to the sources, part of the funds will be allocated toward a $1.48 billion 2027 convertible bond that becomes callable next year. Neither the company nor its representatives have commented on the matter as of the report’s release.
The information was shared on the condition of anonymity since it has not been made public. Meituan’s response for a comment was not immediately available.
Featured Image courtesy of CGTN
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