ICBC contributes to a $555 million USD syndicated loan to Ningbo Joyson Electronic to finance its acquisition of Key Safety Systems (Linked to Record ID#105961)

Project narrative

Between June 23 and 30, 2016, a two-bank syndicate — the Bank of China (BOC) and the Industrial and Commercial Bank of China (ICBC) as joint mandated lead arrangers — entered into a $555 million USD syndicated facility agreement with Ningbo Joyson Electronic Corp. — a Chinese private sector automotive component manufacturer listed on the Shanghai Stock Exchange — to finance its acquisition of all outstanding shares of Key Safety Systems (KSS). Record ID#105961 captures BOC's contribution. Record ID#105962 captures ICBC's contribution. KSS is an American firm that develops and manufactures automotive safety systems. KSS traditionally focused on safety-related component such as air bags, inflators, and seat belts though it ventured into autonomous driving technology including collision avoidance technology and autonomous parking functions. At the time of the acquisition, KSS was the world's fourth largest auto safety supplier with a 7% global market share. KSS is headquartered in Sterling Heights, Michigan and employed over 12,000 people globally with plants in, among other places, Florida and China. In 2014, it generated $1.4 billion USD in business. On February 2, 2016, Ningbo Joyson Electronic that it would acquire all outstanding shares of KSS Holdings Inc. for $920 million USD (€815 million EUR; RMB 6 billion) in cash from vendors FountainVest Partners, Canada Pension Plant Investment Board, Crestview Partners, and the management of KSS. It was planned that KSS would operate as an independent subsidiary after completion. The acquisition was expected to be completed before the end of June 2016. The acquisition was completed on or around June 3, 2016.