Benzinga | Sep 8, 2021 04:42PM EDT

This Popular Facebook Competitor Seeks $4B-$5B In Bank Loan For Expansion

* SoftBank Group Corp (OTC:SFTBY) (OTC:SFTBF) backed ByteDance Ltd is seeking $4 billion - $5 billion in the bank loan to repay debt, replenish its cash reserves for daily operations, and overseas expansion, Reuters reports as per The Information website.

* The TikTok parent aims to capitalize on the low rate interest environment to raise additional capital, Bloomberg reports.

* Beijing's tech sector clampdown spanning social media and gaming to internet platforms has cast doubts over its much-anticipated IPO. ByteDance was aiming for a 2022 IPO amid the tech crackdown.

* In 2019, ByteDance secured a loan of $1.3 billion, which will mature in April 2022.

* Meanwhile, Facebook Inc (NASDAQ:FB) continues to explore options in the U.S. to snatch user time from the growingly popular TikTok. Other unassuming players like Reddit and Microsoft Corp (NASDAQ:MSFT) have succumbed to the TikTok fever.

* Price Action: SFTBY shares closed higher by 3.5% at $32.40 on Wednesday.