Narrative
Full Description
Project narrative
On October 21, 2013, financial close was reached on a deal in which a syndicate of 10 banks — including the Industrial and Commercial Bank of China (ICBC) — entered into a $180.0 million USD senior unsecured revolving credit facility (RCF) and term loan agreement with AerCap Holdings N.V. — a Netherlands-incorporated and Amsterdam, Netherlands-headquartered global aircraft and engine leasing, trading, and parts sales, aircraft management, and aircraft maintenance and repair company listed on the New York Stock Exchange — for general corporate purposes. This loan carried a maturity period of five years consisting of a three-year revolving period and then a two-year term loan period, with the outstanding principal amount of the loan at the end of the revolving period to be amortized over the two-year term loan period, with one-third of the balance to be repaid on October 20, 2017 (a grace period of four years) and the other two-thirds of the balance to be repaid on October 20, 2018. This loan carried an interest rate of LIBOR plus a margin of 2.25% during the three-year revolving period, a margin of 2.50% during the first year of the term loan period, and a margin of 2.75% during the second year of the term loan period. This loan included an accordion mechanism to increase its size to $250 million USD post-closing. It included financial covenants customary for unsecured financings. The proceeds were to be used by the borrower for general corporate purposes. Record ID#102443 captures ICBC's contribution to the RCF. In addition to ICBC, the following lenders contributed to the loan syndicate: DBS Bank, the Bank of East Asia (BEA), Land Bank of Taiwan (LBOT), Taiwan Business Bank (TBB), Bank of Taiwan, Chang Hwa Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank (HNCB), and Taiwan Cooperative Bank. DBS Bank served as the Mandated Lead Arranger, Bookrunner, and Facility Agent. As of December 31, 2013, there was $150.0 million USD outstanding under the RCF and an undrawn commitment available for drawdown under the RCF was $30.0 million USD. In October 2014, the lending syndicate — still including ICBC — entered into an amendment agreement with the borrower; in this amendment, the face value of the RCF was up-sized by $120.0 million USD to $300.00 million USD. Record ID#102504 captures ICBC's contribution to this up-sizing. As of December 31, 2014, the facility was undrawn. In December 2015, AerCap Holdings N.V. entered into a $575.0 million USD unsecured revolving and term loan agreement with a syndicate of lenders; the $300.00 million USD RCF was cancelled with the entry of this loan. The $575.0 million USD was described by AerCap as "effectively an amendment, upsize and extension" of the $300.0 million USD RCF; however, it is unclear whether ICBC participated in this loan.
Staff comments
1. The individual contributions of the 10 lenders to this $180 million USD syndicated loan are unknown. For the time being, AidData has estimated ICBC's contribution by assuming that each lender contributed equally ($18,000,000 USD) to the loan syndicate. 2. In 2015, AerCap Holdings moved its headquarters to Ireland, but remained incorporated in the Netherlands. 3. A 6-month LIBOR was assumed. The average 6-month LIBOR for October 2013 was 0.36122% + 2.25% (the initial margin) = 2.61122%.