Meituan Hits Debt Market With $2.5 Billion Bond Offer

Dow Jones09-25

By P.R. Venkat

Meituan, China's leading shopping-and-delivery platform, plans to raise $2.5 billion by issuing bonds, proceeds of which will be used the refinance offshore debt.

The company plans to issue $1.2 billion in notes due April 2028 and another $1.3 billion maturing in October 2029.

The coupon on these bonds will be 4.500% and 4.625%, respectively, Meituan said Wednesday.

Although the new senior notes have a higher interest rate, the impact on Meituan is likely to be limited given the strength of its core local commerce operating profit, Jefferies equity analysts Thomas Chong and Zoey Zong said in a note.

Meituan said it could redeem the notes before their maturity dates and that issuance of the notes wouldn't restrict its ability to incur additional debt.

Part of the proceeds will also be used to meet general corporate needs, it said.

Fitch Ratings has assigned a BBB rating to the U.S. dollar notes and said that the Chinese e-commerce company's recent upgrade reflects improvement in profitability and strong free cash flow generation ability due to successful strategy execution.

"We expect Meituan to generate strong FCF (free cash flow) over the medium term. It is unlikely to make any significant asset-heavy investments in the near term," Fitch said.

Goldman Sachs, BofA Securities, and Morgan Stanley are among the banks advising Meituan on the debt sales.

Write to P.R. Venkat at venkat.pr@wsj.com

(END) Dow Jones Newswires

September 24, 2024 21:26 ET (01:26 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2470347377?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2024-09-25 09:26","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2470347377","market":"nz","top_or_hot":-1,"title":"Meituan Hits Debt Market With $2.5 Billion Bond Offer","media":"Dow Jones","content":"<font class=\"NormalMinus1\" face=\"Arial\">\n<pre>\n \n</pre>\n<p>\n  By P.R. Venkat \n</p>\n<pre>\n \n</pre>\n<p>\n  Meituan, China's leading shopping-and-delivery platform, plans to raise $2.5 billion by issuing bonds, proceeds of which will be used the refinance offshore debt. \n</p>\n<p>\n  The company plans to issue $1.2 billion in notes due April 2028 and another $1.3 billion maturing in October 2029. \n</p>\n<p>\n  The coupon on these bonds will be 4.500% and 4.625%, respectively, Meituan said Wednesday. \n</p>\n<p>\n  Although the new senior notes have a higher interest rate, the impact on Meituan is likely to be limited given the strength of its core local commerce operating profit, Jefferies equity analysts Thomas Chong and Zoey Zong said in a note. \n</p>\n<p>\n  Meituan said it could redeem the notes before their maturity dates and that issuance of the notes wouldn't restrict its ability to incur additional debt. \n</p>\n<p>\n  Part of the proceeds will also be used to meet general corporate needs, it said. \n</p>\n<p>\n  Fitch Ratings has assigned a BBB rating to the U.S. dollar notes and said that the Chinese e-commerce company's recent upgrade reflects improvement in profitability and strong free cash flow generation ability due to successful strategy execution. \n</p>\n<p>\n  \"We expect Meituan to generate strong FCF (free cash flow) over the medium term. It is unlikely to make any significant asset-heavy investments in the near term,\" Fitch said. \n</p>\n<p>\n  Goldman Sachs, BofA Securities, and Morgan Stanley are among the banks advising Meituan on the debt sales. \n</p>\n<pre>\n \n</pre>\n<p>\n  Write to P.R. Venkat at venkat.pr@wsj.com \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  September 24, 2024 21:26 ET (01:26 GMT)\n</p>\n<p>\n  Copyright (c) 2024 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Meituan Hits Debt Market With $2.5 Billion Bond Offer</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMeituan Hits Debt Market With $2.5 Billion Bond Offer\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-09-25 09:26 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://dowjonesnews.com/newdjn/logon.aspx?AL=N><strong>Dow Jones</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>By P.R. Venkat \n\n\n \n\n\n  Meituan, China's leading shopping-and-delivery platform, plans to raise $2.5 billion by issuing bonds, proceeds of which will be used the refinance offshore debt. \n\n\n  The ...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"IE00BZ1G4Q59.USD","symbol_name":"LEGG MASON CLEARBRIDGE US EQUITY SUSTAINABILITY LEADER \"A\"(USD) INC (A)","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2470347377","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2470347377","pubTimestamp":1727227560,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"Meituan, China's leading shopping-and-delivery platform, plans to raise $2.5 billion by issuing bonds, proceeds of which will be used the refinance offshore debt.The company plans to issue $1.2 billion in notes due April 2028 and another $1.3 billion maturing in October 2029.The coupon on these bonds will be 4.500% and 4.625%, respectively, Meituan said Wednesday.Although the new senior notes have a higher interest rate, the impact on Meituan is likely to be limited given the strength of its core local commerce operating profit, Jefferies equity analysts Thomas Chong and Zoey Zong said in a note.Meituan said it could redeem the notes before their maturity dates and that issuance of the notes wouldn't restrict its ability to incur additional debt.\"We expect Meituan to generate strong FCF  over the medium term. It is unlikely to make any significant asset-heavy investments in the near term,\" Fitch said.Goldman Sachs, BofA Securities, and Morgan Stanley are among the banks advising Meitua","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"IE00BZ1G4Q59.USD":"LEGG MASON CLEARBRIDGE US EQUITY SUSTAINABILITY LEADER \"A\"(USD) INC (A)","LU0164865239.USD":"HSBC GIF CHINESE EQUITY \"AC\" (USD) ACC","LU0051755006.USD":"摩根大通中国A (dist)","03690":"美团-W","IE00B5MMRT66.SGD":"NEUBERGER BERMAN CHINA EQUITY \"A\" (SGDHDG) ACC","LU0315178854.USD":"EASTSPRING INVESTMENTS ASIAN EQUITY INCOME \"A\" ACC","IE00B543WZ88.USD":"NEUBERGER BERMAN CHINA EQUITY \"A\" (USD) ACC","BK1521":"挪威政府全球养老基金持仓","LU0049853897.USD":"SCHRODER ISF EMERGING MARKETS \"A\" (USD) INC AV","BK4504":"桥水持仓","LU0029875118.USD":"TEMPLETON ASIAN GROWTH \"A\" INC","LU1548497426.USD":"安联环球人工智能AT Acc","MPNGY":"美团ADR","LU0052750758.USD":"富兰克林中国基金A Acc","LU0359202008.SGD":"Blackrock China Fund A2 SGD-H","LU0164880469.USD":"HSBC GIF HONG KONG EQUITY \"AC\" ACC","LU0320764599.SGD":"FTIF - Templeton China A Acc SGD","IE00B29SXG58.USD":"FSSA CHINA FOCUS \"I\" (USD) ACC","BK1142":"互联网与直销零售","BK4127":"投资银行业与经纪业","LU0359201612.USD":"贝莱德中国基金A2","LU0106831901.USD":"贝莱德世界金融基金A2","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","LU0345775950.USD":"NINETY ONE GSF ASIAN EQUITY \"A\" (USD) ACC","LU0231483743.USD":"abrdn SICAV I - ALL CHINA SUSTAINABLE EQUITY \"A\" (USD) ACC","LU0048580855.USD":"富达大中华区A","LU0128522157.USD":"TEMPLETON ASIAN GROWTH \"A\" ACC","BK1589":"北水核心资产","LU0417516738.SGD":"Allianz Hong Kong Equity AT Acc SGD","LU0098860793.USD":"FRANKLIN INCOME \"A\" INC","LU0431992006.USD":"摩根大通新兴市场机会A（acc）","BK4534":"瑞士信贷持仓","LU0072913022.USD":"UBS (LUX) EQUITY FUND -  GREATER CHINA \"P\" (USD) ACC","LU0345776255.USD":"NINETY ONE GSF ASIAN EQUITY \"A\" (USD) INC","IE0034224299.USD":"PINEBRIDGE ASIA EX JAPAN EQUITY \"A\" (USD) ACC","BK1604":"节假日概念","LU1162221912.USD":"FRANKLIN INCOME \"A\" (USD) ACC","LU0048597586.USD":"富达亚洲焦点A","LU0211977185.USD":"EASTSPRING INVESTMENTS GREATER CHINA EQUITY \"A\" ACC","IE0032431581.USD":"PINEBRIDGE GREATER CHINA EQUITY \"A\" (USD) ACC","LU0359201885.HKD":"BGF CHINA \"A2\" (HKD) ACC"},"translate_title":"美团-W发行25亿美元债券冲击债务市场","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"MPNGY":1,"US10Y.BOND":1,"US7Y.BOND":1,"US6M.BOND":1,"US5Y.BOND":1,"US3Y.BOND":1,"US30Y.BOND":1,"US2Y.BOND":1,"US12M.BOND":1,"03690":0.9,"US912797GW17.BOND":0.6,"US912797HE00.BOND":0.6},"content_text":"By P.R. Venkat \n\n\n \n\n\n  Meituan, China's leading shopping-and-delivery platform, plans to raise $2.5 billion by issuing bonds, proceeds of which will be used the refinance offshore debt. \n\n\n  The company plans to issue $1.2 billion in notes due April 2028 and another $1.3 billion maturing in October 2029. \n\n\n  The coupon on these bonds will be 4.500% and 4.625%, respectively, Meituan said Wednesday. \n\n\n  Although the new senior notes have a higher interest rate, the impact on Meituan is likely to be limited given the strength of its core local commerce operating profit, Jefferies equity analysts Thomas Chong and Zoey Zong said in a note. \n\n\n  Meituan said it could redeem the notes before their maturity dates and that issuance of the notes wouldn't restrict its ability to incur additional debt. \n\n\n  Part of the proceeds will also be used to meet general corporate needs, it said. \n\n\n  Fitch Ratings has assigned a BBB rating to the U.S. dollar notes and said that the Chinese e-commerce company's recent upgrade reflects improvement in profitability and strong free cash flow generation ability due to successful strategy execution. \n\n\n  \"We expect Meituan to generate strong FCF (free cash flow) over the medium term. It is unlikely to make any significant asset-heavy investments in the near term,\" Fitch said. \n\n\n  Goldman Sachs, BofA Securities, and Morgan Stanley are among the banks advising Meituan on the debt sales. \n\n\n \n\n\n  Write to P.R. Venkat at venkat.pr@wsj.com \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  September 24, 2024 21:26 ET (01:26 GMT)\n\n\n  Copyright (c) 2024 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2470347377"}