Narrative
Full Description
Project narrative
On September 29, 2000, financial close was reached on a deal in which a syndicate of 44 banks — including Bank of China — entered into a $2.2 billion USD revolving credit agreement with Compaq Computer Corporation, a Texas-based technology company. The loan's maturity was 364 days, and the interest rate was LIBOR plus an applicable margin. The use of proceeds was for general corporate purposes, including working capital and operational expenses. While Bank of China contributed to this loan, the following lenders also participated: The Chase Manhattan Bank, Banc One Capital Markets, Bank of America, N.A., Citicorp, ABN AMRO Bank, Bank of Nova Scotia, Barclays Bank, Cariplo/Banca Intesa/BCI, Credit Lyonnais, Den Danske Bank, Dresdner Kleinwort Benson, Fuji Bank, Hypo Vereinsbank, National Westminster Bank, Royal Bank of Canada, Banca Nazionale Del Lavoro, Banca Nazionale Dell'Agricoltura, Bank of Tokyo-Mitsubishi, BNP Paribas, Bayerische Landesbank, HSBC Bank, ING Barings, SG Cowen, Bank Hapoalim, Sumitomo Bank, Banca Popolare Di Milano, Bank of Ireland, Credit Agricole Indosuez, Credit Suisse First Boston, FleetBoston, Fortis Financial Services, Lehman Brothers, Mellon Bank, National Australia Bank, Sanwa Bank, Skandinaviska Enskilda Banken, Standard Chartered Bank, Bank of New York, Westpac Banking Corp., Baden Wurtembergische, Banca Di Roma, Northern Trust Company, and PNC Bank, N.A.
Staff comments
1. Compaq Computer Corporation was an American IT company founded in 1982, known for developing some of the first IBM PC-compatible computers. It became the largest supplier of PC systems in the 1990s but was overtaken by Dell in 2001. In 2002, Compaq was acquired by Hewlett-Packard for $25 billion. 2. AidData estimates the interest rate by adding the 6-month average LIBOR rate in September 2000 and the spread based on debt ratings (according to the SEC filings, the spread in 2000 is 6.4%). The total interest is (6.4%+0.5%) 6.9% 3. The 2000 revolving credit agreement can be found in its entirety via https://www.sec.gov/Archives/edgar/data/714154/000089056600001502/0000890566-00-001502-0005.txt and https://www.dropbox.com/scl/fi/eoussyrgusdnotkbp55ze/sec.gov_Archives_edgar_data_714154_000089056600001502_0000890566-00-001502-0005.txt.pdf?rlkey=33ikgpjcex2dlu4xb9ytcb10i&st=nkp003tx&dl=0