Narrative
Full Description
Project narrative
On September 3, 2013, a syndicate of 27 banks — including Bank of China (BOC) — signed an EUR 1.75 billion syndicated revolving credit facility (RCF) loan to Evonik Industries AG — a German specialty chemicals company — for working capital purposes. The loan is split into two equal tranches of EUR 875 million each. Loan terms include initial maturities of three and five years respectively for each tranche and two, one-year extension options for each tranche. Interest rates consisted of EURIBOR plus a margin of 35bp on the shorter tranche and 40bp on the longer tranche. The loan terms do not contain any covenants requiring Evonik to meet specific financial ratios. In the event of a change of control for Evonik resulting from a takeover bid, the banks could withdraw the credit facility. This loan refinances the previous EUR 1.5 billion facility signed in 2011. The syndicate consisted of 27 banks that made up Evonik Industries' core banking group. Mandated lead arrangers & bookrunners were Banco Bilbao Vizcaya Argentaria (BBVA), Bank of America Merrill Lynch, Bank of China, Barclays, BayernLB, BNP Paribas, Citi, Commerzbank, Crédit Agricole, Credit Suisse, Deutsche Bank, DZ Bank, Goldman Sachs, HSBC, J.P. Morgan, Landesbank Baden-Württemberg, Landesbank Hessen-Thüringen, Mizuho, Morgan Stanley, SEB, Société Générale, Standard Chartered, The Bank of Tokyo-Mitsubishi UFJ, The Royal Bank of Scotland, and UniCredit. Lead arrangers were Industrial and Commercial Bank of China (ICBC) and WGZ Bank. Coordinators were Barclays, BNP Paribas, and Unicredit. The facility agent was Deutsche Bank. Bank of China's contribution to this loan is captured in this Record ID#101437. ICBC's contribution to the loan is captured in Record ID#101438. Both one-year extension options for this loan were utilized. Record ID #s #101511and #101512 capture Bank of China's contributions to the extensions. Record ID #s #101513 and #101514 capture ICBC's contributions to the extensions. As of December 31, 2016, the loan had never been drawn. On June 20, 2017, Evonik Industries AG refinanced this loan at the same amount, with a reduced syndicate of 18 banks and an initial maturity of five years with two one-year extension options.
Staff comments
1. The individual contributions of the 27 lenders to this EUR 1.75 billion syndicated loan is unknown. For the time being, AidData has assumed each lender contributed to each tranche and assumed that each lender contributed equally (EUR 64,814,814.82) to the loan. 2. Since the EURIBOR term was unspecified, AidData has assumed it to be 6 months. In September 2013, average 6-month EURIBOR was 0.340%. The margins for the two equal tranches are 35bp and 40bp respectively, which average to 37.5bp. Therefore, interest rate has been calculated as 0.340% + 0.375% = 0.715%. 3. AidData has coded the maturity as the average of the two different maturity periods for the two equal tranches of the loan, computed as (3+5)/2 = 4.