Alibaba Said to Replace Bridge Loan

Alibaba Group Holding Ltd.’s $3 billion loan is being funded today as the borrower replaces a $2 billion bridge portion of that facility with longer-term debt, and seeks an additional $1 billion in financing, two people familiar with the matter said.

Alibaba is in talks with international lenders for an additional $1 billion four-year loan after signing a $3 billion facility with a syndicate of 19 banks on June 12. That $3 billion financing included a $2 billion bridge loan.

“We got more permanent financing so we no longer need to have the bridge loan,” said John Spelich, a Hong Kong-based spokesman for Alibaba. “This is one of the most successful syndications the market has seen, especially in these volatile market conditions.”

The bridge facility may be replaced by three- and four-year loans from China Development Bank Corp., two other people familiar with the matter said on June 20.

The short-term financing was canceled before the funds were utilized by the borrower and the syndicate of banks will receive 25 percent of the original upfront fees on the bridge, the people who spoke today said, asking not to be identified because the details are private.

To contact the reporter on this story: Wendy Mock in Hong Kong at wmock3@bloomberg.net

To contact the editor responsible for this story: Shelley Smith at ssmith118@bloomberg.net