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Overview

Bank of China (Canada) contributes to a $225 million CAD syndicated revolving term credit facility to Persona Communications for refinancing and general corporate purposes

Commitments (Constant USD, 2023)$55,139,094
Commitment Year•2002Country of Activity•CanadaDirect Recipient Country of Incorporation•CanadaOverseas Jurisdiction•CanadaSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 1, 2002
Last repayment (originally scheduled)
May 31, 2006

Geospatial footprint

Map overview

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This project provided a loan for refinancing and general corporate purposes to Persona Communications, Inc. which was located at 15-500 Barrydowne Rd, Sudbury, ON P3A 3T3, Canada. More detailed locational information can be found at https://www.openstreetmap.org/way/235621800.

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Bank of China (Canada)

Cofinancing agencies

Private Sector

  • BMO Financial Group (Bank of Montreal)
  • Canadian Imperial Bank of Commerce (CIBC)
  • National Bank of Canada
  • Toronto-Dominion Bank (TD Bank Group)
  • United Overseas Bank Limited (formerly United Overseas Bank (Canada))

Receiving agencies

Private Sector

  • Persona Communications, Inc. (PCI)

Loan description

Bank of China (Canada) contributes to a $225 million CAD syndicated revolving term credit facility to Persona Communications for refinancing and general corporate purposes

Interest type•UnknownMaturity•4 years

Collateral

This facility was secured by a first, fixed and floating charge over all assets of Persona Communications, Inc., excluding assets pledged as security for capital lease obligations.

Narrative

Full Description

Project narrative

In June 2002, financial close was reached on a deal in which a syndicate of six banks — including the Bank of China (Canada) — entered into a $225 million CAD syndicated revolving term credit facility agreement with Persona Communications, Inc. (PCI) — a Canadian cable television, Internet. and telecommunications company formerly known as Regional Cablesystems Inc. and a wholly-owned subsidiary of Persona, Inc., a Canadian telecommunications company headquartered in Toronto, Ontario and listed on the Toronto Stock Exchange — for refinancing and general corporate purposes. This facility carried a maturity period of four years with a one-year extension option subject to, among other things, adherence to established covenants and satisfactory arrangements being put in place to refinance PCI's existing secured debentures. This facility was divided into a $10 million CAD term loan tranche with a fixed interest rate of 7.5% and a $215 million CAD revolving loan tranche with an interest rate based on a floating prime rate plus a margin dependent on the borrower's debt leverage ratio. This facility was secured by (i.e. collateralized against) a first, fixed and floating charge over all assets of Persona Communications, Inc., excluding assets pledged as security for capital lease obligations. The proceeds were to be used by the borrower to replace and refinance its existing $175 million CAD revolver and for general corporate purposes, including acquisitions. In addition to Bank of China (Canada), the following lenders contributed to the loan syndicate: The Toronto Dominion Bank, Bank of Montreal, National Bank of Canada, Canadian Imperial Bank of Commerce (CIBC), United Overseas Bank (Canada). As of August 31, 2002, $113.4 million CAD of the revolving facility was undrawn, with the borrowing intending to use primarily for future acquisitions in Canada.

Staff comments

1. AidData has assumed that each lender contributed to each tranche. The individual contributions of the six lenders to this $225 million CAD syndicated revolving term credit facility are unknown. For the time being, to estimate Bank of China (Canada)'s contribution, AidData has assumed that each lender contributed equally ($37,500,000 CAD) to the loan syndicate.