ICBC contributes to a $1.75 billion USD syndicated revolving facility to the Commonwealth of Massachusetts for working capital purposes and general fund expenditures

Project narrative

On May 11, 2020, a syndicate of eight lenders — including the New York Branch of the Industrial and Commercial Bank of China (ICBC) — entered into a $1,750,000,000 USD syndicated revolving line of credit facility with the Government of the Commonwealth of Massachusetts for working capital purposes. This facility carried a maturity period of one year and a final maturity and termination date of May 10, 2021, albeit with extension options. This facility carried an interest rate based on a floating rate plus a margin dependent on the borrower's credit rating, with Aa2/AA or above giving 1.50% for LIBOR loans and 0% for base rate (being the highest of the federal funds rate of 0.50%; a prime rate set by Bank of America; or the LIBOR rate plus 1.00%) revolving loans, and a commitment fee depending on the borrower's credit rating, with Aa2/AA or above giving a fee of 0.75%. This facility was secured by (i.e. collateralized against) a pledge of the full faith and credit and taxing power of the Commonwealth of Massachusetts, per the Constitution and the laws of the Commonwealth of Massachusetts. The proceeds were to be used by the borrower for working capital purposes and general fund expenditures in anticipation of the receipt of revenues in response to the COVID-19 pandemic. Record ID#106385 captures ICBC's contribution. In addition to ICBC NY Branch, the following lenders contributed to the loan syndicate: Bank of America, N.A., Morgan Stanley Bank, N.A., State Street Public Lending Corporation, the Stamford Branch of UBS AG, U.S. Bank National Association, the New York Branch of the Sumitomo Mitsui Banking Corporation (SMBC), and TD Bank, N.A. Bank of America served as administrative agent and BofA Securities, Inc. served as sole lead arranger and sole bookrunner. As of May 15, 2020, the borrower had not made any borrowings under the facility. Then, on March 31, 2021, a syndicate of eight lenders — including the New York Branch of ICBC — entered into a $500,000,000 USD syndicated revolving line of credit facility with the Government of the Commonwealth of Massachusetts for general fund expenditures. This facility carried a maturity period of three years and a final maturity and termination date of March 30, 2024, albeit with extension options. This facility carried an interest rate based on a floating rate plus a margin dependent on the borrower's credit rating, ranging from 0.90% for LIBOR and 0% for base rate (being the highest of the federal funds rate of 0.50%; a prime rate set by Bank of America; or the LIBOR rate plus 1.00%) for above Aa2/AA ratings to 1.60% for LIBOR and 0.70% for base rate if Baa3/BBB- rating and a commitment fee depending on the borrower's credit rating. The borrower's credit rating at signing was AA, so the margin was 1.60% for LIBOR and 0.70% for base. This facility was secured by a pledge of the full faith and credit and taxing power of the Commonwealth of Massachusetts, per the Constitution and the laws of the Commonwealth of Massachusetts. All amounts outstanding under the 2020 facility had to be repaid before closing of the 2021 facility. The proceeds were to be used by the borrower for general fund expenditures. ICBC NY Branch committed $71,000,000.00 USD to the syndicate. Record ID#106386 captures ICBC's contribution. As of April 7, 2021, the borrower had not made any borrowings under the facility. Then, on May 1, 2023, a syndicate of seven banks — including the New York Branch of ICBC — entered into a $500,000,000 USD syndicated revolving line of credit facility with the Government of the Commonwealth of Massachusetts for working capital purposes, general fund expenditures, and refinancing purposes. This facility carried a maturity period of three years and a final maturity and termination date of May 1, 2026, albeit with extension options. This facility carried an interest rate based on a floating rate plus a margin dependent on the borrower's credit rating for Term SOFR (SOFR plus 0.10%) and for base rate (being the highest of the federal funds rate of 0.50%; a prime rate set by Bank of America; or the Term SOFR rate plus 1.00%) and a commitment fee depending on the borrower's credit rating. This facility was secured by a pledge of the full faith and credit and taxing power of the Commonwealth of Massachusetts, per the Constitution and the laws of the Commonwealth of Massachusetts. The proceeds were to be used by the borrower for working capital purposes and general fund expenditures and as an amendment-and-restatement of the March 31, 2021 facility, which it replaced (refinanced). ICBC NY Branch committed $75,000,000.00 USD to the syndicate. Record ID#105585 captures ICBC's contribution.