Narrative
Full Description
Project narrative
On February 26, 2009, financial close was reached on a deal in which a syndicate of 18 banks — including Bank of China (BoC) — entered into a $550 million USD syndicated loan agreement with Belo Corp., a Texas-based media company known for operating television stations and providing news services. The interest rate was LIBOR plus an applicable margin. The loan has two tranches: Tranche one matures on June 7, 2011 and Tranche two matures on December 31, 2012. The proceeds of the loan were used for general corporate purposes, including working capital. While Bank of China contributed to this syndicated loan, the following lenders also participated: JPMorgan Chase Bank, N.A.; Bank of America, N.A.; The Bank of New York; BNP Paribas; SunTrust Bank; Citicorp North America, Inc.; BMO Capital Markets Financing, Inc.; Mizuho Corporate Bank, Ltd.; Sumitomo Mitsui Banking Corporation; Union Bank; U.S. Bank National Association; Wells Fargo Bank, N.A.; Chang Hwa Commercial Bank, Ltd.; E. Sun Commercial Bank, Ltd.; The Northern Trust Company; and Amegy Bank National Association. On November 16, 2009, the banks and the borrower entered into an amended and restated $460,750 revolving credit facility. The commitments were reduced to $460,750 USD. The maturity did not change. On August 11, 2020, the parties entered into an amendment in which they altered certain definitions.
Staff comments
1. Belo Corp. was a prominent media company based in Dallas, Texas, specializing in television broadcasting and news services. It was a key player in the U.S. media industry before splitting into two entities in 2013 for broadcasting and publishing operations. It was acquired by Gannett Company in 2013. 2. AidData estimates the interest rate by adding the 6-month average LIBOR rate at the time of the amendment and an applicable margin based on credit ratings. The total interest rate for the loan was calculated as LIBOR + applicable margin (4% or BB-). 3. No lender was identified in the original 2009 loan contract. However, an amendment to the 2009 loan contract in 2010 identified the lenders, which included Bank of China. AidData hence assumes the contribution of BOC. 4. The individual contributions of the 18 lenders to this $550 million USD syndicated RCF are unknown. For the time being, AidData has estimated the contribution of BOC by assuming that each lender contributed an equal amount ($30555555.56 USD) to the loan syndicate. 5. There are two tranches to the loan. AidData estimates the maturity by taking the average of the two tranches' maturities: (2.28+3.85 years/2=3.065 years).