ICBC contributes $140 million USD to $7.5 billion syndicated loan to Coty for general purpose and debt refinancing purposes in 2015 (Linked to Record ID#106167, #106168 and #106169)

Project narrative

On October 27, 2015, financial close was reached on a deal in which a syndicate of banks — including Bank of China (Luxembourg S.A.), the New York Branch of the Bank of China (BOC), and the New York Branch of the Industrial and Commercial Bank of China (ICBC) — entered into a $7.5 billion USD syndicated loan agreement with Coty Inc., a Delaware-based multinational beauty company specializing in cosmetics, fragrances, and skincare. The loan was divided into three tranches: a $4.5 billion USD revolving credit facility with a maturity of 5 years, a $1.75 billion USD Term Loan A facility with a maturity of 5 years, and a $1.25 billion USD Term Loan B facility with a maturity of 7 years. The interest rate was based on LIBOR plus an applicable margin based on the total net leverage ratio. The proceeds from this loan were used to refinance existing credit agreements, fund transaction fees and costs associated with the loans, and support general corporate purposes, including working capital needs. ICBC contributed $70 million USD to the revolving credit tranche and $70 million USD to Term A loan facility of the loan (Record ID#106166), Bank of China (Luxembourg S.A.) contributed $11,111,111.11 USD to the revolving credit tranche and $12,962,962.97 to Term A loan (Record ID#106167), and BOC contributed $10 million USD to the revolving credit, and $11,666,666.67 to the term A facility (Record ID#106168). In addition to the Chinese state-owned lenders, the following banks also participated: JPMorgan Chase Bank, N.A.; Bank of America, N.A.; Credit Agricole Corporate and Investment Bank; HSBC Bank, N.A.; ING Bank N.V.; Mizuho Bank Limited; Royal Bank of Canada; TD Bank, N.A;Intesa Sanpaolo; The Bank of Nova Scotia; Compass Bancshares Inc.; Sumitomo Mitsui Banking Corporation; UniCredit Bank AG, New York Branch; Deutsche Bank AG; Landesbank Hessen-Thüringen Girozentrale; The Bank of Tokyo-Mitsubishi UFJ, Ltd.; BMO Harris Bank; Fifth Third Bank; Santander Bank, National Association; Standard Chartered Bank; Morgan Stanley Bank, N.A.; Bank of the West; BNP Paribas; Bayerische Landesbank; First Commercial Bank, Ltd.; Landesbank Baden-Württemberg; Capital One, National Association; First Hawaiian Bank; Banco Sabadell, Miami Branch; Crédit Industriel et Commercial; KBC Bank NV; Morgan Stanley Senior Funding, Inc.; Taiwan Business Bank, Los Angeles Branch; United Bank; Liberty Bank; Mega International Commercial Bank Co., Ltd. (New York and Chicago); Israel Discount Bank Limited; and Tristate Capital Bank. On April 8, 2016, the borrower and certain lenders (no Chinese banks) entered into an Incremental Assumption Agreement and Amendment No. 1 in which they agreed to increase 140 million euros to Term A and 325 million euros to term B tranches. On October 28, 2016, a group of lenders signed into Second Incremental Assumption Agreement in which the banks provided $975 million USD additional loan to Term A tranche. While China Bank of Communications Co., Ltd, London Branch contributed $27 million USD (Record ID#106169), others also participated significantly in the $750 million USD syndicated loan agreement. Bank of America, N.A., and JPMorgan Chase Bank, N.A., were among the top contributors, each committing $66.8 million USD. Other notable participants included BNP Paribas, Crédit Agricole Corporate and Investment Bank, HSBC Bank Australia Limited, ING Bank N.V., and Mizuho Bank, Ltd., each providing $58.4 million USD. Deutsche Bank AG contributed $50 million USD, while Banco Bilbao Vizcaya Argentaria, S.A., New York Branch, and Intesa Sanpaolo S.p.A. each committed $43.5 million USD. Additional contributions were made by Bank of Tokyo-Mitsubishi UFJ, Ltd. and Morgan Stanley Bank, N.A. ($33.4 million USD each), Landesbank Hessen-Thüringen ($30 million USD), BMO Harris Bank, N.A., and Fifth Third Bank ($23.4 million USD each). Smaller commitments were provided by KBC Bank N.V., New York Branch, PT Bank Negara Indonesia (Persero) Tbk, New York Agency, and Capital One Bank (USA), N.A., Royal bank of Canada, Santander Bank, Scotiabank DAC, Sumitomo Mitsui Banking Corporation, Tristate Cap Bank, and Unicredit Bank AG. The loan hadidentical terms as the original one, except that the loan matured 5 years after the closing date (October 28, 2016). On April 4, 2018, the lenders and borrower signed a new loan agreement and replaced the 2015 loan agreement with no Chinese bank involvement.