Agricultural Bank of China contributes $50 million USD to $550 million USD syndicated term loan tranche to Flextronics for refinancing and general corporate purposes in 2012 (Linked to Record ID#104858)

Project narrative

On October 19, 2011, financial close was reached on a deal in which a syndicate of banks — including the Bank of China — entered into a $500 million USD syndicated loan agreement with Flextronics International Ltd., a multinational company based in Singapore that provides electronics manufacturing services. The proceeds were used by the borrower for refinancing existing debt and supporting the company’s general corporate activities. Specifically, it was used to repay and replace $480 million USD of outstanding loans under the Company’s 2007 term loan facility, which was otherwise due to mature on October 1, 2012. The maturity of the loan is 5 years (October 2016), and the interest rate is LIBOR plus an applicable margin based on the Company’s credit ratings. The Company is required to pay a quarterly commitment fee on the unutilized portion of the revolving credit commitments under the New Credit Facility ranging from 0.20% to 0.45% per annum, based on the Company’s credit ratings. The Company is also required to pay letter of credit usage fees ranging between 1.25% and 2.25% per annum (based on the Company’s credit ratings) on the amount of the daily average outstanding letters of credit and a fronting fee of 0.125% per annum on the undrawn and unexpired amount of each letter of credit While Bank of China contributed $24,062,500 USD, the syndicate of banks contributing to the loan included Citibank, N.A., Deutsche Bank AG, New York Branch, HSBC Bank USA, N.A., ING Bank N.V., Singapore Branch, Standard Chartered Bank, Bank of Tokyo-Mitsubishi UFJ, Ltd., Société Générale, Credit Suisse AG, Singapore Branch, BNP Paribas, Sumitomo Mitsui Banking Corporation, JPMorgan Chase Bank, N.A., Royal Bank of Scotland, plc, Mizuho Corporate Bank, Ltd., Natixis, Singapore Branch, UBS AG, Stamford Branch, and Barclays Bank PLC In addition, The New Credit Facility permits the Company, at its option, to add one or more incremental term loan facilities and/or increase the revolving commitments in an aggregate amount not to exceed $500 million. Any incremental term loan facility or increase in revolving commitments would be on terms to be agreed among the Company, the Administrative Agent, and the lenders who agree to participate in the facility. On September 10, 2012, the Company and the borrowers entered into Amendment No. 1 in which they amended certain definitions. On September 28, 2012, the parties entered into Amendment No. 2 in which Agricultural Bank of China is added to be a lender of $50 million USD to the term loan tranche (Record ID#104859).