(Bloomberg) -- ByteDance Ltd., the Chinese owner of TikTok, is preparing to refinance a $5 billion loan by another three years, people familiar with the matter said, in what would be one of the largest such deals for the country’s borrowers this year.
Discussions with banks are underway, according to the people, who asked not to be identified discussing a private matter.
ByteDance secured a total of $5 billion in 2021 via a term and revolver facility each of half that amount, according to data compiled by Bloomberg. The company was taking advantage of low interest rates and would use funds mostly to repay debt while replenishing its cash reserves for daily operations, Bloomberg reported at that time.
A ByteDance spokesperson declined to comment in a message.
Founded in 2012, ByteDance has quickly grown to become one of the leading social media platforms in China with the widely-used mobile video application Douyin. It’s also the Beijing-based parent company of TikTok, the social-media app popular in the US and which has become one of the flashpoints between the two countries in recent years.
ByteDance is looking to expand beyond its core business of online advertising into areas like e-commerce and generative AI. At home, it’s among a slew of local big-tech firms that sunk billions of dollars into research and development of large language models and ChatGPT-style apps. Abroad, TikTok is planning to roll out its niche live shopping platform in more European markets, after initial success in the US.
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