Bytes Technology Group PLC (LSE:BYIT, JSE:BYI), the Chinese company behind TikTok, is negotiating to extend the maturity of a $5 billion loan by three years, according to Bloomberg citing sources familiar with the discussions.
If completed, the deal would represent one of the most significant financial deals by a Chinese borrower this year.
The company initially secured the $5 billion in 2021 through a combination of term and revolving credit facilities, benefiting from favourable interest rates, the Bloomberg report suggests.
At the time, ByteDance used the funds primarily for debt repayment and to bolster its cash reserves for ongoing operations.
The refinancing discussions are ongoing, and ByteDance has declined to comment on the matter.
Founded in 2012, ByteDance has rapidly become a major player in the social media landscape, particularly through its video-sharing platform Douyin in China and TikTok internationally.
The company is also expanding into new areas such as e-commerce and generative AI, both domestically and abroad.