Seven mandated lead arrangers and bookrunners are arranging the facility. They are Agricultural Bank of China, Bank of Communications, CTBC Bank, China Construction Bank, China Everbright Bank, Chong Hing Bank and Shanghai Pudong Development Bank.
The loan has a tenor of three years with a bullet repayment structure. It offers a margin of 140bp over Libor or Hibor, depending on whether banks commit in US dollars or Hong Kong dollars.
Three ticket levels are open to lenders. Mandated lead arrangers committing $75m-equivalent and above receive a 66bp fee for a 162bp all-in, lead arrangers committing $50m-$74m-equivalent get a 51bp fee for a 157bp all-in, and arrangers committing $20m-$49m-equivalent earn a 36bp fee for 152bp all-in.
The pricing represents a 10bp cut in the margin compared with the company’s last borrowing, which was sealed in 2020. That $801.9m-equivalent three year facility paid a margin of 150bp and offered all-ins from 163bp to 173bp.
Bankers reckon that Genertec’s strong background has made the deal attractive despite the tighter pricing. The medical equipment leasing firm is a subsidiary of China General Technology (Group) Holding, which in turn is directly owned by the central government.
The new loan will be used to refinance a $618.4m-equivalent facility sealed in 2018. That three year transaction was led by ABC, Bocom, CCB, Chong Hing and SPDB. It offered a margin of 150bp, with all-ins from 165bp to 175bp.
The deadline for commitments is May 18.