Alibaba Group Announces $2.65 Billion Exchange Offer for Senior Notes

Alibaba Group has launched an exchange offer for up to $2.65 billion of outstanding senior notes due 2030, 2035, and 2054. The offer covers $1 billion of 4.875% notes due 2030, $1.15 billion of 5.250% notes due 2035, and $500 million of 5.875% notes due 2054. This move aims to refinance existing debt and potentially lower interest payments.

Alibaba Group Holding (OTCPK:BABAF) has initiated an exchange offer for up to $2.65 billion of its outstanding senior notes due 2030, 2035, and 2054. The offer encompasses $1 billion of 4.875% notes due 2030, $1.15 billion of 5.250% notes due 2035, and $500 million of 5.625% notes due 2054 [1].

The exchange offer is designed to satisfy Alibaba's obligations under a registration rights agreement entered into on November 26, 2024, in connection with the placement of the outstanding notes. The company will not receive any proceeds from the exchange offer, and the terms of the exchange notes are substantially identical to those of the outstanding notes, excluding transfer restrictions and registration rights [2].

The exchange offer will expire at 5:00 p.m. New York City time, on October 2, 2025, unless extended by the company. Holders of the outstanding notes may tender their notes at or prior to the expiration time and may withdraw their tenders at any time before the expiration time [2].

Alibaba Group, a global technology company focused on e-commerce and cloud computing, aims to refinance existing debt and potentially lower interest payments through this exchange offer. The company's move underscores its commitment to financial stability and strategic debt management.

References:
[1] https://seekingalpha.com/news/4492493-alibaba-group-announces-commencement-of-exchange-offer-for-outstanding-senior-notes
[2] https://www.marketscreener.com/news/alibaba-group-announces-commencement-of-exchange-offer-for-outstanding-senior-notes-ce7d59d8dc80f025