China Bank of Communications contributes $10,500,000 to RCF tranche of $2.5 billion syndicated loan agreement to HCA Inc. for debt refinancing and general corporate purposes in 2004 (Linked to Record ID#105213)

Project narrative

On November 9, 2004, financial close was reached on a deal in which a syndicate of 24 banks—including Bank of Communications—entered into a $2.5 billion USD syndicated loan agreement with HCA Inc., a Nashville-based healthcare services company that operates and manages hospitals. The loan was structured to refinance an existing credit agreement and finance a portion of a stock tender offer. The loan is divided into 2 tranches: a Revolving Credit Facility of $1.75 billion USD and a term loan of $750 million USD. The maturity of the loan is five years, and the interest rate is LIBOR plus a margin ranging from 0.400% to 1%, depending on HCA’s long-term debt rating. The proceeds were used primarily to refinance the company’s $2.5 billion USD credit agreement (no Chinese bank involvement) originally dated April 30, 2001 and to fund part of a tender offer to purchase up to 61 million shares of its common stock. The remaining funds will be used for general corporate purposes. While Bank of Communications contributed $10,500,000 USD to the RCF tranche (Record ID#105212) and $4,500,000 to the term loan tranche (Record ID#105213), the following lenders also participated: J.P. Morgan Securities Inc., Bank of America, N.A., Citicorp North America, Inc., Deutsche Bank Securities Inc., Wachovia Bank, National Association, The Bank of Nova Scotia, Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated, SunTrust Bank, The Bank of New York, KeyBank, Calyon New York Branch, AmSouth Bank, Fifth Third Bank, N.A., The Northern Trust Company, Sumitomo Bank, U.S. Bank, N.A., Union Planters Bank, N.A., Bank of America, N.A., The Bank of Nova Scotia, Calyon New York Branch, SunTrust Bank, JPMorgan Chase Bank, and Merrill Lynch Capital Corporation. November 3, 2005, the lenders and the company entered into an agreement, changing certain definitions. On November 17, 2006, after the company’s Recapitalization, the Company entered into a $2 billion senior secured asset-based revolving credit facility and a term loan to replace the existing loan, which has no Chinese involvement.