Wanda to repay US$275m debt

Chinese conglomerate Dalian Wanda has secured enough cash to repay a US$275 million (HK$2.15 billion) private-debt facility that matures Wednesday, according to people familiar with the matter.

The company is finalizing a new 364-day debt facility of slightly less than US$275 million arranged by the same bank as the previous loan - Credit Suisse Group - said one of the people.

The fresh financing will be backed by Wanda's equity in Hollywood film studio Legendary Entertainment, the person added.

Wanda and Credit Suisse did not immediately respond to requests for comment yesterday.

The group has been at the center of a debt-repayment crisis, with its dollar bonds plunging over the past several months. Founder Wang Jianlin has been negotiating with regulators and Wanda strategic investors on potential support while lieutenants crisscrossed the country to push for debt extensions, Bloomberg News reported two weeks ago.

Wanda notes climbed yesterday. A bond that is due July 23 jumped 4.3 cents to 89.9 cents on the dollar, according to data compiled by Bloomberg, on pace for its largest gain in nearly a month.