Narrative
Full Description
Project narrative
In late July 2013, a syndicate of 22 banks — including the Bank of China (BOC) and the Industrial and Commercial Bank of China (ICBC) — entered into a £1.250 billion GBP syndicated revolving credit facility (RCF) agreement with Jaguar Land Rover Automotive plc — an England and Wales-incorporated British multinational automobile manufacturer based in Whitley, Coventry, England, the holding company of Jaguar Land Rover (JLR), and a wholly-owned subsidiary of TML Holdings PTE. Limited, a Singapore-incorporated wholly-owned subsidiary of Tata Motors Limited, an Indian automobile company — for refinancing and working capital purposes. This RCF was divided into two tranches: a £312.5 million GBP tranche with a maturity period of three years, a final maturity date in July 2016, and an interest rate based on LIBOR plus a margin of 200 basis points (bps) and a £937.5 million GBP tranche with a maturity period of five years, a final maturity date in July 2018, and an interest rate based on LIBOR plus a margin of 250 bps. Jaguar Land Rover Holdings Limited, Jaguar Land Rover Limited, Land Rover Exports Limited, and Jaguar Land Rover North America, LLC served as guarantors The proceeds were to be used by the borrower to replace (refinance) the borrower's existing £795 million GBP syndicated RCF (split into a three-year £615 million GBP tranche and a five-year £180 million GBP tranche) accrued in December 2011 via an amendment and restatement of that facility and for the working capital purposes of the borrower. Record ID#106235 captures BOC's contribution. Record ID#106236 captures ICBC's contribution. In addition to BOC and ICBC, the following lenders contributed to the loan syndicate: Bank of America Merrill Lynch (BAML), BNP Paribas S.A., Standard Chartered Bank PLC, Australia and New Zealand Banking Group (ANZ), Barclays Bank Plc, Citibank N.A., Crédit Agricole Group, Credit Suisse AG, Deutsche Bank AG, Goldman Sachs Group, Inc., HDFC Bank Limited, HSBC Bank, ING Group N.V., JPMorgan Chase Bank, N.A., Lloyds Bank, Mizuho Bank, Ltd., Morgan Stanley, Royal Bank of Scotland (RBS), Banco Santander, S.A., and Société Générale S.A. (SocGen). BAML, BNP Paribas, and Standard Chartered served as lead banks. The RCF was launched as a three-year £200 million GBP and a five-year £600 million GBP tranche before being increased during syndication. Some time after signing, the facility was up-sized by £40 million GBP to £1.290 billion GBP, with the three-year tranche becoming £323 million GBP and the five-year tranche becoming £967 million GBP, apparently via the participation of an additional lender. As of March 31, 2014, the RCF was fully undrawn. On March 31, 2014, via an accordion option, an additional five lenders joined the loan syndicate, up-sizing the facility by £195 million GBP to £1.485 billion GBP, with the three-year tranche becoming £371 million GBP and the five-year tranche becoming £1.114 billion GBP. As of March 31, 2015, the RCF was fully undrawn. In July 2015, a syndicate of 30 banks — unknown if including BOC or ICBC — entered a £1.870 billion GBP syndicated RCF agreement with Jaguar Land Rover Automotive; the proceeds were used by the borrower to refinance the 2013 RCF.
Staff comments
1. The individual contributions of the 22 lenders to this £1.250 billion GBP syndicated revolving credit facility are unknown, nor it is known how the lenders contributed to the £312.5 million GBP and £937.5 million GBP tranches. For the time, AidData has assumed each lender contributed to each tranche. Therefore, to estimate BOC and ICBC's contributions, AidData has assumed that each lender contributed equally (£104,166,666.667 GBP) to the loan syndicate. 2. As it is unclear how much BOC and ICBC contributed to each tranche, assuming they did contribute to each tranche, AidData has taken the average of the maturity periods {[(3 + 5) / 2] = 4} and the average of the interest rate margin and used it to code the margin of interest rate {[(200 + 250) / 2] = 225 bps} to feed into the interest rate.