One of China’s fastest-growing technology startups is in talks to obtain a loan from banks that are hoping to win a role on its coveted initial public offering later.
The startup, Beijing-based Bytedance Ltd, which owns a popular Chinese news-aggregation app called Jinri Toutiao, is in talks to borrow as much as USD 1.5 billion from a clutch of Wall Street banks based in both the US and Europe. The six-year-old company also owns TikTok, a short-video app that has 500 million monthly active users world-wide and which recently merged with US social-media app Musical.ly.
The transaction could take place in coming weeks. The financing being discussed includes a term loan and a revolving credit line. The banks in talks with Bytedance include Goldman Sachs Group Inc, Morgan Stanley, Citigroup Inc, UBS Group AG and Bank of AmericaCorp.
Source: The Wall Street Journal