Hillhouse seeks to refinance mattress maker’s US$800 million loan

Hillhouse Investment is in talks with banks to refinance an US$800 million (HK$6.24 billion) loan that backed its acquisition of Chinese mattress maker AI Dream, according to people familiar with the matter.

The Asia-based asset manager is seeking to raise around US$800 million in US dollars or the Chinese yuan, or a combination of the two, said the people, who asked not to be named discussing private matters. The new loan could carry a tenor of around five to seven years, the people added.

Discussions with potential financiers are ongoing and the deal’s details could be subject to change, the people said. Hillhouse didn’t respond to a request for comment.

China Merchants Bank (3968), CMB Wing Lung Bank, Ping An Bank and Shanghai Pudong Development Bank provided the original US$800 million dollar-denominated loan in 2021. In 2023, banks agreed to partially convert the seven-year facility into Chinese yuan to help Hillhouse lower its borrowing costs.

Hillhouse acquired a controlling interest in AI Dream from Advent International in 2021. The firm makes mattresses for Serta and King Koil brands in China.

BLOOMBERG