Tencent Music Launches $500M+ Bond Sale with Five- and Ten-Year Notes

Tencent Music Entertainment Group has launched a US dollar bond sale with five- and 10-year senior unsecured notes. The music-streaming company provided initial price guidance of about 90 basis points over the five-year US Treasury yield and around 125 basis points over the 10-year Treasury yield.

The deal, expected to be benchmark size at least US$500 million, will be used for general corporate purposes, including refinancing offshore debt and share repurchases. The company plans to price the notes during US trading hours on Thursday and settle on September 10.

Tencent Music currently holds a credit rating of A2 from Moody's, an A rating from S&P Global Ratings, and an A- rating from Fitch. Moody's and S&P expect to give the new notes A2 and A ratings, respectively. JPMorgan is acting as a bookrunner alongside Goldman Sachs and HSBC, while UBS, Bank of China, and MUFG are joint lead managers.