China's Scrutiny of HNA Leads to Record Refinancing Cost
- Group priced $300m 363-day note at 8.875%: person familiar
- Move is latest sign of strain for HNA after acquisition spree
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HNA Group Co., which once symbolized China’s insatiable appetite for overseas assets, sold the country’s most expensive short-term dollar bond ever as it tries to refinance a wall of maturing debt amid government scrutiny.
The company priced a 363-day bond at 8.875 percent, after initially marketing it for about nine percent, according to a person familiar with the offering. Proceeds from the $300 million sale will be used to refinance offshore debt, said the person, who isn’t authorized to speak publicly and asked not to be identified. The previous record was Herun Holdings Ltd.’s eight percent notes sold in September, according to data compiled by Bloomberg.