Bank of China contributes $43.13 million USD to the $375.04 million USD term loan tranche of a $523.67 million USD syndicated loan for the Houston Ship Channel Petrochemical Complex Project (Linked to Record ID#102890)

Project narrative

On May 15, 2020, financial close was reach on a deal in which a syndicate of nine banks — including the Bank of China (BOC) — entered into a $523.67 million USD syndicated loan agreement with Pasadena Performance Products LLC — a Delaware-incorporated Texas-headquartered special purpose vehicle and a wholly-owned subsidiary of Next Wave Energy Partners (a portfolio company of Energy Capital Partners) — for the Houston Ship Channel Petrochemical Complex. The loan carried a maturity period of seven years and four months (7.333 years) and a final maturity date of September 30, 2027. This loan was divided into three tranches: a $115.03 million USD revolver tranche, a $375.04 million USD term loan tranche, and a $33.60 million USD letter of credit tranche. BOC contributed $18.58 million USD to the $115.03 million USD revolver tranche as captured by Record ID#102890. In addition to BOC, the following lenders contributed the respective amounts to the revolver tranche: BNP Paribas S.A. ($18.58 million USD), Crédit Agricole Group ($18.58 million USD), Mizuho Bank ($18.58 million USD), MUFG Bank ($18.58 million USD), Société Générale S.A. (SocGen) ($18.58 million USD), and Sumitomo Mitsui Banking Corporation (SMBC) ($3.55 million USD). BOC contributed $43.13 million USD to the $375.04 million USD term loan tranche as captured by Record ID#102892. Additionally, the following lenders contributed the respective amounts to the term loan tranche: BNP Paribas ($43.13 million USD), Crédit Agricole ($43.13 million USD), ING Bank ($43.13 million USD), Investec ($30.00 million USD), Mizuho Bank ($43.13 million USD), MUFG Bank ($43.13 million USD), SocGen ($43.13 million USD), and SMBC ($43.13 million USD). BOC did not contribute to the $33.60 million USD letter of credit tranche. ING Group contributed $18.58 million USD and SMBC $7.52 million USD. The project had a cost of $1.0089 billion USD. The sponsors contributed $485.23 million USD in equity. The proceeds of this loan were used by the borrower for the construction and development of a 28,000 BPD ethylene conversion facility near the Houston Ship Channel in Pasadena, Texas. Clough Ltd., an Australian firm, provided engineering, procurement, construction, and commissioning (EPCC) services for the project. The project, known as Project Traveler, resulted in ethylene-to-alkylate production facility on the 53-acre Pasadena site. The project was initially announced in 2019 and planned for start-up in mid-2022, but reached commercial operations as of March 20, 2024. The plant produces low-sulfur, high-octane, low-RVP alkylate with zero olefins, and has the capacity to consume a maximum of 1.2 billion pounds per year of ethylene feedstock in order to output high-quality alkylate blendstock.