ByteDance Ltd., the Chinese owner of TikTok, is securing a $9.5 billion loan, marking the largest dollar-denominated corporate loan in Asia outside Japan. The loan, coordinated by Citigroup, Goldman Sachs, and JPMorgan, has a three-year term with an option to extend to five years.
The loan amount exceeds initial expectations, reflecting ByteDance’s strategic move to leverage Asia’s liquid loan market, which has seen a sharp decline in dollar loan volumes this year. The proceeds will be used to refinance a $5 billion loan from 2021 and to support the company’s working capital needs.
ByteDance’s loan includes a greenshoe option, allowing the amount to increase beyond $9.5 billion. The loan starts with an interest margin of 85 basis points over the benchmark Secured Overnight Financing Rate (SOFR).
Founded in 2012, ByteDance has rapidly grown into a leading social media company, with Douyin in China and TikTok globally. The company is now diversifying into e-commerce and generative AI, while expanding TikTok’s live shopping platform into more European markets following its success in the U.S.
ByteDance’s continued expansion efforts come as it navigates geopolitical tensions, particularly concerning TikTok’s role in U.S.-China relations.
