Narrative
Full Description
Project narrative
On September 28, 2017, financial close was reached on a deal in which a syndicate of 17 banks — including Industrial and Commercial Bank of China (New York Branch) — entered into a $1.5 billion USD syndicated loan agreement with Jacobs Engineering Group Inc., a Delaware-based multinational professional services firm. The maturity of the loan is three years, and the interest rate is LIBOR plus an applicable margin based on the consolidated leverage ratio. The proceeds were used by the borrower to finance its acquisition of CH2M Hill Companies, Ltd., an engineerig company that provided consulting, design and constuction services for governments and corporations based in Corvallis, Oregon. While ICBC (New York Branch) contributed $70 million USD to this facility (Record ID#106354), the following lenders also participated: BNP Paribas; The Bank of Nova Scotia; Wells Fargo Bank, N.A.; TD Bank, N.A.; U.S. Bank National Association; Crédit Agricole Corporate and Investment Bank; Fifth Third Bank; HSBC Bank USA, N.A.; Morgan Stanley Bank, N.A.; Barclays Bank PLC; BMO Harris Bank, N.A.; PNC Bank, N.A.; Citizens Bank, N.A.; Compass Bank (BBVA Compass); JPMorgan Chase Bank, N.A.; and National Westminster Bank PLC. On November 30, 2018, the borrower and lenders entered into first amendment in which they changed certain definitions. On December 18, 2017, Jacobs Engineering completes the acquisition. On March 27, 2019, financial close was reached on a deal in which a syndicate of 18 banks — including Industrial and Commercial Bank of China (New York Branch) — entered into a $2.25 billion USD revolving credit facility with Jacobs Engineering Group Inc., a Delaware-based multinational professional services firm. The maturity of the loan is five years, and the interest rate is LIBOR plus an applicable margin. The proceeds were used by the borrower for general corporate purposes, including refinancing existing indebtedness and supporting ongoing business operations. While ICBC (New York Branch) contributed $50 million USD to this facility (Record ID#106355), the following lenders also participated: Bank of America, N.A.; BNP Paribas; Wells Fargo Bank, N.A.; The Bank of Nova Scotia; HSBC Bank USA, N.A.; PNC Bank, N.A.; TD Bank, N.A.; U.S. Bank National Association; Barclays Bank PLC; BMO Harris Bank, N.A.; National Westminster Bank PLC; Morgan Stanley Bank, N.A.; Citizens Bank, N.A.; MUFG Bank, Ltd.; Branch Banking and Trust Company; Compass Bank; JPMorgan Chase Bank, N.A.; and The Northern Trust Company. On February 6, 2023, financial close was reached on a $2.25 billion USD multicurrency revolving credit facility between Jacobs Solutions Inc. and Jacobs Engineering Group Inc., and a syndicate of 20 banks. The facility, arranged by Bank of America, N.A. as Administrative Agent, includes Bank of China (New York Branch) and ICBC (New York Branch) as participating lenders. The maturity of the loan is five years, and the interest rate is based on SOFR plus an applicable margin. The proceeds were used for general corporate purposes, including working capital and debt refinancing purposes. While the Bank of China (Record ID#106356) and ICBC (Record ID#106357) each contributed to this facility, the following lenders also participated: Bank of America, N.A.; BNP Paribas; Wells Fargo Bank, N.A.; TD Bank, N.A.; The Bank of Nova Scotia; HSBC Bank USA, N.A.; U.S. Bank National Association; Barclays Bank PLC; PNC Bank, N.A.; Citizens Bank, N.A.; JPMorgan Chase Bank, N.A.; Morgan Stanley Bank, N.A.; National Westminster Bank PLC; Royal Bank of Canada; Truist Bank; Comerica Bank; Regions Bank; and The Huntington National Bank.
Staff comments
1. Jacobs Solutions Inc. and Jacobs Engineering Group Inc., headquartered in Dallas, Texas, are leaders in the provision of engineering, technical, and construction services. They operate globally, serving industries including energy, infrastructure, and aerospace. 2. AidData estimates the interest rate by adding the 6-month average SOFR rate in February 2023 and an applicable margin based on the borrower’s credit rating based on the Consolidated Leverage Ratio (1.375%) plus the 0.1% adjustment spread. 3. The contribution of the 20 lenders to this $2.25 billion USD revolving credit facility are not disclosed. Bank of China (New York Branch) and ICBC (New York Branch) are assumed to contribute the same amounts (2.25 billion/20=112,500,000 USD)