Narrative
Full Description
Project narrative
Prior but close to March 26, 2022, a syndicate of six banks, including Bank of China (BOC), entered into a $265 million NZD ($184 million USD) syndicated loan agreement with KKR Asia Pacific Infrastructure Investors S.C.S.p. (KKR Asia Pacific Infrastructure Fund) — a Luxembourg-incorporated infrastructure fund focused on Asia managed by global American investment company Kohlberg Kravis Roberts & Co. L.P. (KKR) — to facilitate its acquisition of a majority stake in New Zealand bus transport company Ritchies Transport Holdings Limited. This loan carried a maturity period of five years. In addition to BOC, the following lenders contributed to the loan syndicate: Commonwealth Bank of Australia (CBA), MUFG Bank, Ltd., Metrics Credit Partners, National Australia Bank Limited (NAB), and JPMorgan Chase Bank, N.A. CBA and MUFG served as joint mandated lead arrangers, bookrunners, and underwriters (MLAUB). Metrics and NAB joined in syndication as mandated lead arrangers. BOC and JPMorgan joined in as lead arrangers. The proceeds were to be used by the borrower to support its acquisition of a majority stake in Ritchies Transport from its owners, the Ritchie family,, which KKR entered into a definitive agreement to do so on August 26, 2021 for an undisclosed sum Ritchies Transport was one of New Zealand’s largest bus companies with 42 depots across the country, a fleet over 1600 vehicles, and 1,800 staff. It operates public transport services on behalf of the local government councils in cities including Auckland, Christchurch, Timaru, Dunedin, Queenstown, and Whangarei and government-contracted, nationwide school bus services. It also offers inter-regional long-haul, charter and tour bus services. Ritchies Transport was owned by the Ritchies family, and the acquisition would see them continue to maintain a stake and Andrew Ritchie become chief executive officer (CEO). The acquisition was structued with Rome NZ Bidco Limited and Rome NZ Propco Limited — two New Zealand-incorporated special purpose vehicles (SPVs) majority-owned by KKR Asia Pacific Infrastructure Investors S.C.S.p. — acquiring a 100% of the shares of Ritchies Transport Holdings Limited and Coachline Properties Limited, including their leasehold interests in approximately 0.2928 hectares of residential land in North Auckland, being the lands contained in NA828/12, 59617, and NA1037/122 and part of approximately 10.0028 hectares of residential land at 134 Turvey Road, being part of the lands contained in NA82C/951 and NA17D/1487. The acquisition was conditional to approval from New Zealand's Overseas Investment Office (OIO). The OIO approved the acquisition on December 22, 2021. The acquisition closed in March 2022.
Staff comments
1. The individual contributions of the six lenders to this $265 million NZD syndicated loan are unknown. For the time being, AidData has assumed each lender contributed to each tranche. Therefore, to estimate the contribution of BOC, AidData has assumed that each lender contributed equally ($44,166,666.6667 NZD) to the loan syndicate. 2. The specific borrower is unknown. However, it is very likely that a special purpose vehicle, possibly Rome NZ Bidco Limited and Rome NZ Propco Limited, was the direct borrower.