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Alibaba receives 3 billion dollar loan

By Kristopher Fraser

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Business

New York - Alibaba Group Holding Limited announced today that they have signed a 3 billion dollar deal syndicated loan agreement with eight lead arrangers for five years.

The loan, which is subject to upsize through oversubscription in syndication, has a five-year bullet maturity and is priced at 110 basis points over LIBOR, the company stated in an SEC filing. The loan will be used for "general corporate purposes."

Alibaba has been very liberal about their buying over the past several years as they attempt to expand their reach, diversify their investment portfolio, and create synergies between their multiple business units.

Some of the company's recent assets include Hong Kong Newspaper The South China Morning Post. Alibaba also recently made a bid for 3.5 billion dollars to buy out online video company Youku Tudou. They also spent 4.6 billion dollars to get 20 percent of electronics chain Suning Appliance Company Ltd. They bought online marketing company AdChina to boost their mobile and online marketing capabilities. For the total price of 590 million dollars, they also purchased a minority stake in Meizu Technology Corporation Limited.

Back in December, the company was eyeing European expansion, and announced they would be opening offices in Munch and Paris. The move helped to better serve Alibaba's European-based partners, as they continue their goal of becoming the "gateway to China." In the world of their continuous expansion, "corporate purposes" could mean anything for them, so it will be curious to see what their next business move will be.

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