Bank of China contributes to debt rescheduling — via a one-year maturity extension and interest rate adjustment — of a £215 million GBP syndicated revolving credit facility to Ibstock plc for refinancing purposes (Linked to Record ID#104727 and #104728)

Project narrative

In March 2017, a syndicate of six banks — including the Bank of China (BOC) — entered into a £250 million GBP syndicated revolving credit facility (RCF) agreement with Ibstock plc — an England and Wales-incorporated manufacturer of clay bricks and concrete products listed on the London Stock Exchange — for refinancing purposes. This loan carried a maturity period of five years and a final maturity date of March 2022 with no fixed repayment terms, an interest rate of LIBOR plus a margin between 1% to 2.25% depending on the borrower's leverage ratio and an interest cover of 4x and leverage covenant limits of 3x. Ibstock plc issued a guarantee for this RCF. The proceeds were used by the borrower to refinance and replace a £200 million GBP loan and £40 million GBP committed RCF facility. Record ID#104727 captures BOC's contribution. In addition to BOC, the following lenders contributed to the loan syndicate: Barclays Bank Plc, Fifth Third Securities, Inc., HSBC Bank Plc, Lloyds Bank, and Banco Santander S.A.. Fifth Third contributed £36.5 million GBP to the RCF. In 2017, amounts between £150 million GBP and £180 million GBP were drawn under the RCF. In November 2018, after Ibstock sold its Glen-Gery business, Fifth Third Bank withdrew from the RCF, reducing its face value to £213.5 million GBP In 2018, amounts between £86 million GBP and £180 million GBP were drawn under the RCF. In 2019, the five-bank lending syndicate entered into an agreement with the borrower; in the amendment, the face value of the RCF was up-sized by £1.5 million GBP to £215 million GBP. Record ID#104728 captures BOC's contribution to the up-sizing. In 2019, amounts between £80 million GBP and £125 million GBP were drawn under the RCF. In December 2020, the five-bank lending syndicate — still including BOC — entered into an amendment agreement with the borrower; in the amendment agreement, the lenders extended the maturity period of the £215 million GBP syndicated RCF by one year — for a new maturity period of six years — and set March 2023 as the new final maturity date and increased the margin's range from 200 basis points (bps) to 325 bps, increased from 1% to 2.25%, still dependent on the leverage ratio. Additionally, the covenants of the RCF were amended that the leverage of no more than three times net debt to adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) except at June 30, 2021, which was amended to no more than 3.75 times during the period and the interest cover of 4x amended to be tested bi-annually instead of annually. Record ID#104729 captures BOC's contribution to the debt rescheduling. As of December 31, 2020, £90 million GBP was drawn down under the RCF. In November 2021, a syndicate of five banks entered into a £125 million GBP RCF agreement with Ibstock for refinancing purposes. This loan carried a maturity period of five years. Ibstock also issued £100 million GBP of private placement notes. The proceeds of the RCF and notes were used by the borrower to repay the existing £215 million GBP RCF in November 2021.