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Overview

Bank of China contributes to debt rescheduling — via a one-year maturity extension in 2009 — of a €2.2 billion EUR syndicated loan to Lagardère for refinancing and general corporate purposes (Linked to Record ID#105489 and #105491)

Commitment Year2009Country of ActivityFranceDirect Recipient Country of IncorporationFranceSectorAction Relating To DebtFlow TypeDebt rescheduling

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2009
Last repayment (originally scheduled)
Jun 21, 2012

Geospatial footprint

Map overview

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Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • ABN AMRO Bank NV
  • Banco Bilbao Vizcaya Argentaria, S.A. (BBVA)
  • Banque Fédérative du Crédit Mutuel (BFCM) (CM-CIC)
  • Barclays Bank PLC
  • BNP Paribas S.A.
  • Caisse Régionale de Crédit Agricole Mutuel de Paris et d'Ile de France
  • Citigroup Inc.
  • Crédit Agricole Corporate and Investment Bank (CACIB) (Crédit Agricole CIB) (Formerly Calyon) (Formerly Crédit Agricole Indosuez (CAI))
  • Deutsche Bank AG
  • Dresdner Kleinwort
  • HSBC Bank PLC
  • HypoVereinsbank (HVB)
  • ING Group N.V.
  • IXIS Corporate & Investment Bank (IXIS CIB)
  • JPMorgan Chase Bank, N.A. (Chase Bank, formerly the Chase Manhattan Bank)
  • Mediobanca - Banca di Credito Finanziario S.p.A.
  • Mizuho Bank, Ltd.
  • Morgan Stanley
  • Natexis Banques Populaires
  • Société Générale Corporate and Investment Banking (SGCIB)

State-owned Banks

  • Bayerische Landesbank (BayernLB)

Receiving agencies

Private Sector

  • Lagardère S.C.A.

Loan desecription

Bank of China contributes to debt rescheduling — via a one-year maturity extension in 2009 — of a €2.2 billion EUR syndicated loan to Lagardère for refinancing and general corporate purposes (Linked to Record ID#105489 and #105491)

Interest typeVariable Interest RateLoan tenor1-month rateMaturity7 years

Narrative

Full Description

Project narrative

On June 22, 2005, a syndicate of 22 banks — including the Bank of China (BOC) — signed a €2.200 billion EUR syndicated multicurrency loan facility agreement with Lagardère S.C.A. — a France-incorporated holding company for Lagardère S.A., a French publishing and news company — for refinancing and general corporate purposes. This facility carried a maturity period of five years with two one-year extension options, a final maturity date in 2010, and an interest rate based on one-month EURIBOR plus a margin dependent on a leverage grid of the borrower's net debt to earnings before interest, taxes, depreciation, and amortization (EBITDA), with a leverage of 1.5 times or less having a margin of 20 basis points (bps), a leverage of 1.5 to 2.5 times having a margin of 22.5 bps. and 2.5 times or greater having a margin of 27.5 bps. The proceeds were to be used by the borrower for its general corporate purposes and to replace (refinance) two credit lines established in June 2001 (€1.35 billion EUR) and July 2003 (€700 million EUR). Record ID#105489 captures BOC's contribution. In addition to BOC, the following lenders contributed to the loan syndicate: Banco Bilbao Vizcaya Argentaria, S.A. (BBVA), BNP Paribas S.A., Calyon, Citigroup, HSBC Bank, JPMorgan Chase Bank, N.A., Natexis Banques Populaires, Société Générale Corporate & Investment Bank (SGCIB), Banque Fédérative du Crédit Mutuel (BFCM) (CM-CIC), ING Group N.V., Mediobanca, Mizuho Bank, ABN AMRO Bank NV, Barclays Bank Plc, Bayerische Landesbank (BayernLB), Crédit agricole d'Île-de-France, Deutsche Bank, Dresdner Kleinwort Wasserstein, IXIS Corporate & Investment Bank (IXIS CIB), HypoVereinsbank (HVB), and Morgan Stanley. BNP Paribas, Calyon, Citigroup, and HSBC Bank served as mandated lead arrangers and bookrunners. BBVA, JPMorgan, Natexis Banques Populaires, and SGCIB served as mandated lead arrangers. CM-CIC, ING, Mediobanca, and Mizuho served as arrangers. BOC, ABN AMRO, Barcalys, BayernLB, Crédit agricole d'Île-de-France, Deutsche Bank, Dresdner Kleinwort Wasserstein, IXIS CIB, HVB, and Morgan Stanley. In syndication, lenders were offered tickets of €125 million EUR for a fee of 10 bps and €50 million EUR for a free of 7 bps. As of December 31, 2005, €250 million EUR was drawn under the facility. In 2006, the borrower repaid the €250 million EUR drawn. As of December 31, 2006, there was no outstanding balance. In 2007, the borrower drew down on the loan to finance the acquisition of Sportfive, a German based international sports marketing agency. As of December 31, 2007, €600 million EUR was drawn under the facility. In or by 2008, the lending syndicate — still including BOC — entered into an amendment agreement with the borrower; in the amendment agreement, the lenders extended the maturity period of the €2.2 billion EUR loan by one year — for a new maturity period of six years — and set the final maturity date to 2011. Record ID#105491 captures BOC's contribution to this debt rescheduling. In 2008, the borrower drew down €1.080 billion EUR under the facility. As of December 31, 2008, €1.680 billion EUR was drawn under the facility. In or by 2009, the lending syndicate — still including BOC — entered into an another amendment agreement with the borrower; in the amendment agreement, the lenders extended the maturity period of the €2.2 billion EUR loan by one year — for a new maturity period of seven years — and set the final maturity date to 2012. Record ID#105492 captures BOC's contribution to this debt rescheduling. As of December 31, 2009, €1.680 billion EUR was drawn under the facility. As of December 31, 2010, €612,289,843 EUR was drawn under the facility. On January 26, 2011, a syndicate of 14 banks signed a €1,645,000,000 EUR syndicated loan agreement with Lagardère S.C.A. to refinance the €2.2 billion EUR syndicated loan.