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ByteDance had 37B in revenue in 2020. A 3B refinancing deal - done at a time of very favorable interest rates - is really a non-story.
by the_duke 5y ago
ByteDance had 37B in revenue in 2020.
A 3B refinancing deal - done at a time of very favorable interest rates - is really a non-story.
- iamgopal 5y agoAny idea exact interest rate ? low means in single digit ? 10 ? 4 ?
- pphysch 5y agoThe interest rate at which large banks can borrow USD is officially 0-1% and effectively negative due to massive quantitative easing.
- stingraycharles 5y agoBut that is not the rate at which they will lend the money to ByteDance, at all. Still has a significant risk involved.
- pphysch 5y agoIt's close to the base rate. It's not a payday loan...
- alexfromapex 5y agoExcept it’s partially-owned by China and there is a possibility that they’re deliberately trying to pull money out of the US economy
- Scoundreller 5y agoMore likely trying to get money out of China. Getting a US loan against your Chinese assets is a good way to do that.
- oliwarner 5y agoOkay, I'll admit to being a little naïve on big finance but holding a debt like this is still going to cost them 30 million a year. If it's "only" 7% of revenue, surely they'd pay the debts off. Seems more likely all that revenue is sunk into existing costs and they need the loan to remain liquid.
- foota 5y agoOf course the revenue is sunk into other things, they're trying to invest as much as possible, and so they're looking for additional funding to grow.