Narrative
Full Description
Project narrative
On September 15, 2014, KKR & Co. Inc., an American global investment company based in New York, finalized the $1.1 billion USD acquisition of Goodpack Limited, the largest rental provider of reusable pallet-sized intermediate bulk containers based in Singapore. While KKR used some of its own resources to finance the acquisition, a group of banks (no Chinese banks) provided financing, which consisted of a $520 million first lien term loan facility, a $85.5 million first lien revolving facility, a $13.5 million first-lien stand-alone letter of credit facility, and a $170 million second lien term loan facility. Then, KKR delisted Goodpack from the Singaporean stock exchange. In June 2018, financial close was reached on a deal in which a syndicate of 8 banks — including ICBC — entered into a $765 million USD term loan B (TLB) to refinance KKR’s acquisition of Goodpack in 2014 (Record ID#104987). The proceeds were used to specifically refinance the first lien and second lien term loan facilities. The financing comprises a $610 million USD five-year first-lien portion and a six-year US $155 million USD second-lie piece. In addition to ICBC, ANZ, BDO Unibank, BNP Paribas, Credit Agricole CIB, HSBC, Natixis and Standard Chartered also contributed to this loan. On October 23, 2023, financial close was reached on a deal in which a syndicate of 14 banks — including ICBC and Bank of China Hong Kong branch — entered into a 5-year $790 million USD TLB to refinance the 2018 loan with Goodpack. The loan was converted into a sustainability-linked loan: the interest rate of the financing is linked to Goodpack’s year-on-year performance on sustainability targets, which will be assessed by indpendent provider EcoVardis. The key performance indicators will be tied to environment, labour, human rights, ethics and sustainable procurement factors, among others. Depending on progress made on the targets, a discount or premium may apply to the margin. The borrowing paid a top-level all-in pricing of 460.1bp via an interest margin of 425bp over term SOFR. While ICBC contributed $100 million USD (Record ID#104988), BOC (Record ID#104989) and Taifung Bank (Record ID#104990)contributed $30 million to the loan each, other banks also contributed. ANZ, BDO Unibank, BNP Paribas, Credit Agricole CIB, HSBC, Natixis and Standard Charter served as original mandated lead arrangers & bookrunners; ING Bank served as lead arranger & bookrunner; Ares Infrastructure Fund, Bank Mandiri served as mandated lead arrangers; Kiatnakin Bank and Tai Fung bank served as arrangers.
Staff comments
1. Goodpack is the world’s first and largest provider of reusable pallet-sized intermediate bulk containers (IBCs) on a pay-per-use basis to companies transporting valuable payloads globally by road, rail, or sea. Prior to 2014, it was a Singaporean company. 2. KKR & Co. Inc., also known as Kohlberg Kravis Roberts & Co., is an American global investment company that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate, credit, and, through its strategic partners, hedge funds. 3. The syndication process started in October 2022 and was not closed until June 2023 {{See Source# 195671}}. Originally, the loan was expected to be $825 million USD ($675 million term loan and $150 million revolving credit). But the terms were changed and finalized in 2023.