China’s Tencent said to market $3.5b Supercell acquisition loan

REUTERS/Kim Kyung-Hoon

Tencent Holdings Ltd. has started marketing a $3.5 billion loan to lenders to back its purchase of a majority stake in Supercell Oy from SoftBank Group Corp., people familiar with the matter said.

Asia’s biggest internet company is offering the facility, which has an average life of 4.3 years, at an interest rate of 212 basis points more than the London interbank offered rate, according to the people, who asked not to be identified because they aren’t authorized to speak publicly. The five-year non-recourse financing is split into a $3 billion term loan and a $500 million revolving credit, they said.

Tencent is leading a $8.6 billion deal for control of Supercell, the Finnish maker of mobile games including Hay Day, Clash Royale and Boom Beach. China’s Internet giants have been tapping demand for “new economy” investments and raising more funds in debt markets, with the nation’s biggest e-commerce company Alibaba Group Holding Ltd. getting a $4 billion loan earlier this year.

Calls to Canny Lo, a spokeswoman for Tencent, went unanswered. There was no immediate reply to e-mailed questions.

The mandated lead arrangers and underwriters for the loan are Australia & New Zealand Banking Group Ltd., Bank of America Corp., Bank of China Ltd., China Merchants Bank Co., Deutsche Bank AG, HSBC Holdings Plc and Shanghai Pudong Development Bank Co., according to the people.

Bloomberg

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.