Chinese conglomerate Dalian Wanda Group Co. has prepared enough cash to repay a $275 million private-debt facility that matures Wednesday, according to people familiar with the matter.
(Bloomberg) — Chinese conglomerate Dalian Wanda Group Co. has prepared enough cash to repay a $275 million 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 $275 million arranged by the same bank as the previous loan— Credit Suisse Group AG — said one of the people, who asked not to be identified as the matter is private. The fresh financing will be backed by Wanda’s equity in Hollywood film studio Legendary Entertainment LLC, the person added.
Wanda and Credit Suisse didn’t immediately respond to requests for comment Tuesday.
The group has been at the center of debt-repayment worries, 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 crisscross the country to push for debt extensions, Bloomberg News reported two weeks ago.Â
Wanda notes climbed Tuesday. A bond that’s 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.
(Adds market performance in the last paragraph. An earlier version of this story incorrectly said Credit Suisse was the lender, not the arranger.)
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