Bank of China contributes to a $193 million USD syndicated loan to Manulife US Real Estate Management to refinance two of its U.S. properties and for general and working capital purposes

Project narrative

On May 2, 2019, a syndicate of five banks — including the Singapore Branch of the Bank of China (BOC) — entered into a $193.0 million USD syndicated loan agreement with Manulife US Real Estate Management Pte. Ltd. — a Singapore-incorporated real estate investment trust wholly-owned by The Manufacturers Life Insurance Company, a Canada-incorporated and based insurance company (later renamed Manulife Financial Corporation) and the manager for the Manulife US Real Estate Investment Trust listed on the Singapore Exchange Securities Trading Limited — to refinance two of its U.S. properties and for general and working capital purposes. The loan was divided into three tranches: a $110.0 million USD term loan facility tranche with a variable interest rate, a $33.0 million USD term loan facility tranche with a variable interest rate, and a $50.0 million USD revolving loan facility tranche with a variable interest rate. This loan carried a maturity period of five years and a final maturity date of May 9, 2024. The loan was secured by (i.e. collateralized against) share charges over the Singapore subsidiaries of Manulife US REIT, assignment of certain banks accounts, and assignments of certain intercompany loans and share pledges over shares in the direct owner of the office building located at 865 South Figueroa Street, Los Angeles, California and the direct owner of the office building at 4000 and 4050 Legato Road, Fairfax, Virginia. The proceeds of the $110 million USD term loan facility were to be used by the borrower to refinance the existing mortgage loan on the office building located at 865 South Figueroa Street, Los Angeles, California. The proceeds of the $33 million USD term loan facility were to be used to refinance loans used to part finance the acquisition of the office building located at 4000 and 4050 Legato Road, Fairfax, Virginia (Centerpointe I and II). The proceeds of the $50 million USD revolving loan facility were used by the borrower and its subsidiaries for general corporate and working capital purposes. On July 10, 2019, the borrower fully drew down the $110 million USD term loan facility and the Figueroa property was refinanced on July 12, 2019. On May 9, 2019, the borrower fully drew on the $33 million USD term loan facility. As of December 31, 2019, $7.5 million USD had been drawn down under the $50 million USD revolving loan facility, $5.3 million USD of which was used by the borrower to refinance the Figueroa property. The borrower entered into interest rate swaps to hedge the floating rates of the $110 million USD facility to a fixed rate at 3.25% and the $33 million USD facility to a fixed rate of 3.77%. In addition to BOC Singapore Branch, the following lenders contributed to the loan syndicate: BNS Asia Limited, DBS Bank Ltd., Oversea-Chinese Banking Corporation Limited (OCBC Bank), and the Singapore Branch of Standard Chartered Bank plc.