SYDNEY, Sept 24 Reuters China39;s Meituan is aiming to raise up to 2 billion in a 3.5 and 5year dollar bond deal, according to two sources with direct knowledge of the matter and a term sheet seen by Reuters on Tuesday.
The sources declined to be identified as the information has not been made public.
Meituan, the food delivery company, did not immediately respond to a request for comment from Reuters.
The company is planning to raise 1 billion from each of the tranches, the sources said.
Initial price guidance for the 3.5year bond is 3year Treasuries plus about 145 basis points. For the longerdated bond, guidance is 5year Treasuries plus about 160 basis points.
Meituan plans to use the funds to refinance upcoming offshore debt, the term sheet said.
The company has a 1.48 billion 2027 convertible bond that becomes callable next year and some of the funds raised in this deal will be used to finance that event, one of the sources said.
Reporting by Scott Murdoch; Editing by Himani Sarkar and Jacqueline Wong
Source Reuters