Tencent Music Entertainment Group (1698) launched a US dollar bond sale with 5- and 10-year senior unsecured notes, according to a term sheet seen by Reuters on Thursday.
The music-streaming company gave 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, which usually means at least US$500 million (HK$3.9 billion).
Tencent Music plans to use the money for general corporate purposes, including refinancing offshore debt and share repurchases.
The deal is expected to price during US trading hours on Thursday and settle on September 10.
Moody's rates Tencent Music A2, while S&P Global Ratings assigns an A rating and Fitch rates it A-. Moody's and S&P expect to give the new notes A2 and A ratings, respectively.
JPMorgan is a bookrunner, alongside Goldman Sachs and HSBC. UBS, Bank of China and MUFG are joint lead managers.
Reuters
