Ant Financial Kicks Off USD3 Billion Loan Plan to Finance Acquisition of MoneyGram
(Yicai Global) March 30 — Ant Financial Services Group, financial arm of Alibaba Group, has kicked off its plan to take on a USD3 billion debt to repay its bridge loan for the acquisition of MoneyGram International Inc., a US-based money transfer service provider.
Ant Financial will make a one-off repayment when the loan is due, Reuters reported today, citing insiders. The loan has a maturity of three years and could be extended for another two years. Australia and New Zealand Banking Group Ltd., Citigroup Inc., Credit Suisse Group AG, DBS Bank, Goldman Sachs Group Inc., HSBC Holdings, JPMorgan Chase & Co., Mizuho Securities Co. and Morgan Stanley will serve as leading banks and bookkeeping banks.
Interest rates will be the ‘London Interbank Offered Rate’ (Libor) plus 135 basis points if the loan maturity is three years and Libor plus 155 basis points if it is five years.
Funds raised through the loan will be used to refinance the bridge loan, which was spent on Ant Financial’s acquisition of MoneyGram.
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