Tencent Music Launches US Dollar Bond Sale with Benchmark-Sized Notes
Tencent Music Entertainment Group has launched a US dollar bond sale with 5- and 10-year senior unsecured notes. The music-streaming company provided initial price guidance of about 90 basis points over the 5-year US Treasury yield and about 125 basis points over the 10-year Treasury yield.
The deal is expected to be benchmark size, meaning it should raise at least $500 million (HK$3.9 billion). Tencent Music plans to use the funds for general corporate purposes, including refinancing offshore debt and share repurchases.
The new notes are expected to price during US trading hours on Thursday and settle on September 10. Moody's and S&P Global Ratings have assigned A2 and A ratings to the company's existing debt, respectively, and expect to give similar ratings to the new notes.