Narrative
Full Description
Project narrative
On October 19, 2018, a two-bank syndicate — consisting of HSBC Bank PLC (serving as agent) and BNP Paribas S.A. — entered into a €200,000,000 EUR syndicated Revolving Credit Facility (RCF) agreement with Tritax EuroBox plc — a United Kingdom-based property and investment company listed on the London Stock Exchange that invests in distribution centers and logistics-related real estate assets in Continental Europe — for general corporate and working capital purposes. This loan carried a maturity period of five years with an option to extend for additional two years, a final maturity date of October 19, 2023, an interest rate based upon EURIBOR (or, if EURIBOR was negative, zero) plus a margin between 1.55% (opening) to 2.2%, the margin dependent on the drawn level and prevailing loan-to-value ratio. The proceeds were available for general corporate and working capital purposes including, but not limited to, capital expenditure and/or acquisitions. Tritax EuroBox (Peine) PropCo GmbH, Tritax EuroBox (Bochum) PropCo GmbH, Tritax Eurobox (Bremen I) Propco GmbH, Tritax Eurobox (Bremen II) Propco GmbH, Dietz Logistik 26. Grundbesitz GmbH, Dietz Logistik 33. Grundbesitz GmbH, Dietz Logistik 44. Grundbesitz GmbH provided guarantees for this loan. Then, on December 17, 2018, Bank of America Merrill Lynch (BAML) entered into an agreement with Tritax EuroBox to join the RCF with a €100 million EUR commitment in accordion funding, raising the RCF's face value to €300 million EUR. Then, on September 30, 2019, the London Branch of Bank of China (BOC) and Banco de Sabadell S.A. entered into an agreement with Tritax EuroBox to join the RCF. BOC committed €100 million EUR in accordion funding and Banco Sabadell committed €25 million EUR in accordion facility to the RCF, raising the RCF's face value to €425,000,000 EUR. BOC and Banco Sabadell joined on the terms (interest and final maturity date) as the existing facility. Record ID#100000 captures BOC's commitment. As of September 30, 2019, €235.5 million EUR had been drawn down against the RCF. Then, on November 19, 2019, four of five lenders to the RCF — BOC, BNP Paribas, BAML, and Banco Sabadell — entered into an amendment agreement with Tritax Eurobox; in this agreement, the four lenders agreed to extend the maturity period of their collective €325 million EUR commitment to the RCF by one year to October 19, 2024. HSBC UK Bank declined to extend its €100 million EUR commitment, leading that portion to retain a maturity date of October 19, 2023. Record ID#100002 captures BOC's contribution to this debt rescheduling. As of March 31, 2020, €356.5 million EUR had been drawn down against the RCF. As of September 30, 2020, €344.0 million EUR had been drawn against the RCF. Then, in October 2020, three of the lenders — BOC, BNP Paribas, and Banco Sabadell — entered into another amendment agreement with Tritax Eurobox; in this agreement, the three lenders agreed to extend the maturity period of their collective €225 million EUR commitment to the RCF by one year to October 19, 2025. HSBC UK Bank declined to extend its €100 million EUR commitment, leading that portion to retain a maturity date of October 19, 2023 and BAML declined to extend its €100 million EUR commitment, leading that portion to retain a maturity date of October 19, 2024. Record ID#100003 captures BOC's contribution to this debt rescheduling. As of March 31, 2021, €260.0 million EUR had been drawn against the RCF. On June 25, 2021, Tritax EuroBox, using the proceeds of a newly-issued €500 million EUR green bond, reduced the face value of the RCF to €250 million EUR. Of this €250.0 million EUR figure, HSBC committed €58.8 million EUR, BNP Paribas committed €58.8 million EUR, BOC committed €58.8 million EUR, BAML committed €58.9 million EUR, and Banco Sabadell committed €14.7 million EUR. Then, on July 15, 2021, four of the lenders — BOC, BNP Paribas, BAML, and Banco Sabadell — entered into another amendment agreement with Tritax Eurobox; in this agreement, the four lenders agreed to extend the maturity period of their collective €191.2 million EUR commitment to the RCF by one year to October 19, 2025 (all lenders except BAML had already restructured the debt by one year in October 2020), and apparently adjusted the interest rate to EURIBOR (or zero, if EURIBOR was negative) plus a margin of 1.2% to 1.9% depending on the drawn level and prevailing loan-to-value (LTV) ratio. Record ID#100004 captures BOC's contribution to this debt rescheduling. As of September 30, 2021, the €250 million EUR RCF was fully undrawn. On November 19, 2021, the five lenders — BOC, BNP Paribas, BAML, Banco Sabadell, and HSBC — entered into an amendment and restatement agreement for the €250,000,000 EUR RCF in which Tritax EuroBox (Peine) PropCo GmbH, Tritax EuroBox (Bochum) PropCo GmbH, Tritax Eurobox (Bremen I) Propco GmbH, Tritax Eurobox (Bremen II) Propco GmbH, Dietz Logistik 26. Grundbesitz GmbH, Dietz Logistik 33. Grundbesitz GmbH, Dietz Logistik 44. Grundbesitz GmbH would no longer be required to provide a guarantee under the facility. On December 22, 2021, HSBC transferred its €58.82 million EUR commitment to Banco Santander. Then, on January 4, 2022, the maturity date of HSBC's former contribution (now Banco Santander's) was extended to the rest of the lenders to October 19, 2025. As of September 30, 2022, €11 million EUR was drawn against the RCF.
Staff comments
1. Banco Sabadell likely pledged its €25 million EUR commitment in August 2019, per page 154 of "Tritax EuroBox plc Annual Report 2019". However, it does not seem to have been announced or finalized until Bank of China's commitment was, on September 30, 2019. 2. While the maturity period of this loan was five years, by nature of BOC joining in late September 2019 when the loan was originally committed in mid-late October 2018 and the loan's final maturity date falling in October 2023, the maturity period of BOC's original commitment has been coded as four years. 3. A 6-month EURIBOR was assumed. The average 6-month EURIBOR for July 2021, when the loan was first contracted, was -0.513%, meaning the rate was equivalent to zero for purposes of interest per the loan contract. Therefore, the interest rate plus 0% + 1.2% (the opening interest margin), or 1.2%.