Several major banks are vying to provide Chinese e-commerce conglomerate Alibaba Group with the USD 4 bln in debt financing necessary to help its bid to buy back Yahoo's 40% stake in the company, according to Thomson Reuters. Alibaba will reach terms of agreement with lenders this week.
According to sources familiar with the case, once the terms of agreement are finalized, the lenders can then begin preparations to provide the financing, however it will take until the third week of January 2012 before the financing is completed.
It is understood that the debt financing will be in terms of a three-year loan with a margin of approximately 450 basis points over the London Interbank Offer Rate (LIBOR).
Editor's Note: For more information on this topic, please see "Alibaba Seeks USD 4 Bln in Debt Financing for Yahoo Buyback," MD 12/09/11 issue.