ByteDance in talks with banks to borrow over $4 billion: Sources

The company plans to take advantage of currently low interest rates to repay its debt, a source said.
The company plans to take advantage of currently low interest rates to repay its debt, a source said. PHOTO: AFP

BEIJING (REUTERS) - ByteDance, the Chinese owner of short-video platform TikTok, is in talks with Wall Street banks to borrow more than US$3 billion (S$4 billion) to refinance its debt, according to two people with knowledge of the matter.

The company plans to take advantage of the low interest rates now to repay its debt, one of the people said, adding that terms and the loan size are still subject to changes.

They did not want to be identified, citing confidentiality constraints. ByteDance declined to comment.

Technology news website The Information reported that ByteDance and the banks have discussed raising between US$4 billion and US$5 billion to refinance debt and fund overseas expansion.

ByteDance had been exploring a public listing in the beginning of this year, sources have told Reuters, but in April the company said it had no imminent plans for an initial public offering.