Agricultural Bank of China contributes to EUR 20 million syndicated revolving credit facility to Fabory Nederland BV for working capital and general corporate purposes (Linked to Record ID#102012)

Project narrative

On August 31, 2016, Agricultural Bank of China (ABC) committed to contribute to an EUR 130 million syndicated loan to Fabory Nederland BV — a Dutch nuts and bolts supplier — for refinancing existing debt and general corporate purposes. The loan consists of an EUR 110 million term loan and an EUR 20 million revolving credit facility (RCF). The term loan is captured in Record ID#102012. The revolving credit facility is captured in Record ID#102014. For the EUR 110 million term loan, no principal amount of the loan would be required to be paid until the loan becomes due, at which time the loan will be required to be paid in full. Fabory can choose to prepay the term loan in whole or in part at the end of any interest period without penalty. This term loan was used to pay in full EUR 102.5 million of a term loan that matured in August 2016, which was entered into to partially fund the acquisition of Fabory in 2011. Terms for the term loan for the include a maturity of five years, an interest rate based on EURIBOR (deemed zero if EURIBOR is negative) plus a margin of 45 basis points, insurance provided at the expense of Fabory, and a guarantee provided by Fabory's parent company, W.W. Grainger. In February 2020, Fabory repaid the term loan with senior notes. The EUR 20 million revolving credit facility is for general corporate and working capital purposes. It must generally be paid at the conclusion of each interest period as defined in the facility agreement. Loan terms include a maturity of five years and an interest rate based on EURIBOR plus 35 basis points. Fabory has the right to obtain advances under the revolving credit facility. As of December 31, 2016, there was a commitment fee of 0.1225%. As of December 31, 2016, there was EUR 5 million outstanding on the revolving credit facility. As for the syndicate, KBC was bookrunner and mandated lead arranger. Agricultural Bank of China (ABC) and Royal Bank of Canada (RBC) joined as mandated lead arrangers.