Narrative
Full Description
Project narrative
On October 24, 2019, financial close was reached on a deal in which a syndicate of eight lenders — including the Industrial and Commercial Bank of China (ICBC) — entered into a $625.00 million USD syndicated loan agreement with Long Beach Container Terminal, LLC (LBCT LLC) — a Delaware-incorporated special purpose vehicle (SPV) and joint venture of Macquarie Infrastructure Partners Inc. (MIP), s a United States-based fund under Australia's Macquarie Infrastructure and Real Assets (MIRA), a division of Macquarie Group (50% equity stake) and Macquarie Infrastructure Partners IV, L.P., a Delaware-incorporated infrastructure fund managed by MIRA (50% equity stake) — to finance its acquisition of an 80% stake in the Long Beach Container Terminal (LBCT). This loan carried a maturity period of seven years and was divided into four tranches: a $200.00 million USD acquisition loan tranche; a $50.00 million USD revolving credit facility (RCF) tranche; a $175.00 million USD capex loan; and a $200.00 million USD letter of credit tranche. ICBC contributed $39.02 million USD to the $200 million USD acquisition loan tranche. Record ID#106171 captures ICBC's contribution. In addition to ICBC, the following lenders contributed the respective amounts to the tranche: Crédit Agricole Group ($14.78 million USD), ING Capital LLC ($14.78 million USD), Intesa Sanpaolo S.P.A. ($29.56 million USD), MUFG Bank, Ltd. ($18.48 million USD), National Australia Bank Limited (NAB) ($29.56 million USD), Natixis ($39.02 million USD), and Société Générale S.A. (SocGen) ($14.78 million USD). ICBC contributed $4.88 million USD to the $50 million USD RCF tranche. Record ID#106172 captures ICBC's contribution. In addition to ICBC, the following lenders contributed the respective amounts to the tranche: Crédit Agricole ($4.88 million USD), ING Capital ($4.88 million USD), Intesa Sanpaolo ($9.76 million USD), MUFG Bank ($6.10 million USD), NAB ($9.67 million USD), Natixis ($4.88 million USD), and SocGen ($4.88 million USD). ICBC contributed $17.07 million USD to the $175 million USD capex loan tranche. Record ID#106173 captures ICBC's contribution. In addition to ICBC, the following lenders contributed the respective amounts to the tranche: Crédit Agricole ($17.07 million USD), ING Capital ($17.07 million USD), Intesa Sanpaolo ($34.15 million USD), MUFG Bank ($21.34 million USD), NAB ($34.15 million USD), Natixis ($17.07 million USD), and SocGen ($17.07 million USD). ICBC did not contribute to the $200 million USD letter of credit, which was provided by Crédit Agricole ($24.24 million USD), MUFG Bank ($30.30 million USD), NAB ($48.48 million USD), and SocGen ($96.97 million USD). ICBC, Crédit Agricole, ING Capital, Intesa Sanpaolo, MUFG, NAB, Natixis, and SocGen served as lead arrangers. The proceeds were to be used by the borrower to finance and support Macquarie's $1.780 billion USD acquisition of a 80% equity interest in the Long Beach Container Terminal (LBCT) from Orient Overseas International (OOIL) as well as capital expenditure for a third berth. LBCT was a two-berth container terminal located in the Port of Long Beach, California with a capacity of 2 million twenty-foot equivalent units (TEU) annually which, at the time of the acquisition, was being expanded via the addition of a third berth that would raise total capacity to 3.3 million TEU. LBCT was fully automated and capable of handling two 20,000 TEU vessels per week. LBCT was the second largest terminal at Long Beach and was under a concession running to 2051. Hong Kong-based container shipment company OOIL sold the asset due to national security concerns. In 2017, state-owned Chinese company China COSCO Shipping Corporation Limited and Shanghai International Port Group offered to buy OOIL for $6.3 billion USD, which would have given them ownership of LBCT, one of the busiest and most modern containers in the United States, a piece of critical economic infrastructure amidst poor relations between China and the United States. As a result, the Committee on Foreign Investment in the United States (CFIUS) ordered OOIL to divest from LBCT. On July 7, 2018, OOIL, Faulkner Global Holdings (a subsidiary of COSCO SHIPPING Holdings), the U.S. Department of Homeland Security and the U.S. Department of Justice entered into the National Security Agreement for OOIL's divestiture of LBCT its ownership of the LBCT business. On April 30, 2019, Macquarie Infrastructure Partners entered into a sale and purchase agreement with OOIL's wholly-owned subsidiaries OOCL LLC and Long Beach Container Terminal, Inc. for the sale of LBCT, which included a 20-year Container Stevedoring and Terminal Services Agreement (minimum volume contract) for the port via its OOIL's wholly-owned subsidiary Overseas Orient Container Lines (OOCL). The acquisition was completed on October 24, 2019.