Taiwan banks give tepid welcome to 7 Days loan

7 days holding
By Rashmi Kumar
30 Apr 2014

Taiwanese banks considering Chinese hotel chain 7 Days Group Holdings’ $300m leveraged loan are demanding an upward revision in fees for underwritten commitments, several sources have told GlobalCapital Asia. The appetite to lend still remains, but overexposure to China names, a fear of defaults and a steep rise in funding costs are backing lenders into a corner, writes Rashmi Kumar.

7 Days went private and delisted from the New York Stock Exchange in July 2013, signing a $120m five year loan to fund the buyout. It has now returned for a larger recapitalisation, with some of the loan also to be used for general corporate purposes.

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