Tencent Music Leisure has priced a USD $1 billion bond providing.
TME says it intends to make use of the web proceeds for “basic company functions, together with refinancing of offshore indebtedness and share repurchases.”
The providing includes $500 million of 5.050% senior unsecured notes due 2031 and $500 million of 5.650% senior unsecured notes due 2036.
The notes have been priced on September 3, in response to a pricing time period sheet filed with the SEC.
TME confirmed the phrases in an announcement carried in filings with the SEC and the Hong Kong Inventory Alternate on September 4.
The corporate expects internet proceeds of roughly $991.9 million, after underwriting reductions, commissions, and estimated providing bills.
The 2031 notes have been bought at 99.804% of face worth, for a yield to maturity of 5.095% and a selection of 60 foundation factors over the benchmark US Treasury.
The 2036 notes have been bought at 99.638% of face worth, for a yield of 5.698% and a selection of 95 foundation factors.
Each tranches decide on September 10, 2026, and mature on September 10 of 2031 and 2036, respectively.
J.P. Morgan Securities LLC, Goldman Sachs (Asia) L.L.C., and The Hongkong and Shanghai Banking Company Restricted are joint bookrunners on the providing.
UBS AG Hong Kong Department, Financial institution of China Restricted, and MUFG Securities Asia Restricted are joint lead managers.
The corporate reported zero financial institution borrowings on the finish of 2025.
By June 30, 2026, it had RMB 13.14 billion ($1.94 billion) of financial institution debt.
Of that, RMB 7.14 billion was categorized as non-current and RMB 6.00 billion as present.
TME drew RMB 12.77 billion of recent short-term and long-term borrowings through the first half of the yr, in response to its money circulation assertion.
The remaining got here onto the stability sheet with Ximalaya, whose financial institution borrowings have been consolidated when TME closed its $2.4 billion acquisition of the Chinese language audio platform on Might 18.
Complete consideration acknowledged at completion got here to roughly RMB 14.0 billion ($2.06 billion), beneath the worth reported when the deal was introduced in June 2025.
Round RMB 8.6 billion of that was money, with the stability in TME shares.
The identical money circulation assertion reveals RMB 7.42 billion of internet money paid for enterprise mixtures over the half, in opposition to the RMB 12.77 billion drawn.
TME doesn’t hyperlink the 2, saying solely that the power proceeds “shall be used to assist our enterprise transactions or for basic company functions.”
All of TME’s borrowings are RMB-denominated, unsecured financial institution debt.
A lot of the long-term loans are priced on the Mortgage Prime Price minus 0.85% to plus 0.30%, with an additional RMB 45 million at a hard and fast 3.10%.
The services TME drew down over the half run from 316 days to 10 years.
The short-term loans carry charges of 1.70% to 2.30%.
Of the long-term portion, RMB 5.28 billion doesn’t fall due for greater than 5 years.
On the notes facet, TME has $500 million of 2.000% senior notes due 2030 excellent.
These have been issued in September 2020 alongside $300 million of 1.375% notes due 2025, which the corporate says “have been absolutely repaid.”
The 2030 notes had a good worth of $450 million on the finish of June, in opposition to a principal quantity of $500 million, and TME is “not topic to any monetary covenants or different important restrictions” below them.
With each financial institution mortgage denominated in RMB, these 2030 notes are the one offshore borrowing disclosed in both the prospectus complement or the interim accounts.
Retiring them would imply changing 2.000% cash with the 5.050% and 5.650% cash priced on September 3, in opposition to notes the market valued at round 90 cents on the greenback on the finish of June.
Complete debt throughout borrowings and notes reached RMB 16.53 billion ($2.44 billion) at June 30.
TME’s administrators judged the danger hooked up to the group’s capital construction to be “distant because the Group has a internet money place,” in response to the interim accounts.
The corporate’s mixed stability of money, money equivalents, time period deposits, and short-term investments was RMB 44.2 billion ($6.5 billion) on the finish of June, up from RMB 38.0 billion on the finish of 2025.
On the buyback facet, TME’s board licensed a $1 billion repurchase program on March 17, 2025, operating for 2 years from March 21, 2025.
The corporate purchased again 43.5 million ADSs for roughly $400 million through the second quarter, at a mean worth of $9.20 per ADS.
That left $600 million of the authorization undrawn as of June 30, with this system on account of expire in March 2027.
TME states within the prospectus complement: “We could repurchase extra shares relying on market circumstances.”
Within the second quarter, the corporate generated revenues of RMB 8.93 billion ($1.32 billion), up 5.8% YoY, with music-related companies income up 11.0% to RMB 7.61 billion ($1.12 billion).
Cussion Pang, Govt Chairman of TME, stated of these numbers: “Our second-quarter outcomes replicate the continued power of our content-and-platform technique.”
TME has been deploying capital elsewhere, too, shopping for HYBE’s whole 9.38% stake in SM Leisure for round $177 million in 2025.
It additionally declared roughly $370 million in dividends for the 2025 fiscal yr, at $0.12 per bizarre share, or $0.24 per ADS.
The brand new notes are anticipated to be rated A2 by Moody’s and A by S&P, in response to the time period sheet.
Within the prospectus complement, TME describes itself as “the biggest on-line music leisure platform in China when it comes to MAU as of December 31, 2025.”Music Enterprise Worldwide
