Narrative
Full Description
Project narrative
On October 18, 2022, financial close was reached on a deal in which a syndicate of nine banks—including Bank of China—entered into a $1 billion USD syndicated loan agreement with Fortive Corporation, a U.S.-based diversified industrial technology company. The loan's maturity is 364 days, and the interest rate is SOFR plus an applicable margin. The purpose of the loan is to provide general corporate purposes, including potential acquisitions. The proceeds were used by the borrower for general corporate purposes, which could include acquisitions, refinancing of existing debt, or other business-related activities. While Bank of China contributed to this loan, the following lenders also participated: Bank of America, The Bank of Nova Scotia, BNP Paribas, U.S. Bank, Sumitomo Mitsui Banking Corporation, PNC Bank, Truist Bank, and The Toronto-Dominion Bank.
Staff comments
1. The entirety of the loan contract can be accessed at https://www.sec.gov/Archives/edgar/data/1659166/000119312522265934/d404734dex102.htm and https://www.dropbox.com/scl/fi/gxqa3ryu84z38jkuq0lgp/215369.pdf?rlkey=dxs27g97we09u2lrc91abyg3z&st=5rndy2s2&dl=0 2. Fortive Corporation is a U.S.-based diversified industrial technology company headquartered in Everett, Washington. It operates in professional instrumentation and industrial technologies, with subsidiaries such as Fluke Corporation and Tektronix. 3. AidData estimates the interest rate by adding the 6-month average SOFR rate in October 2022 and an applicable margin based on credit ratings (BBB or 0.95%). 4. The individual contributions of the 9 lenders to this $1 billion USD syndicated loan are unknown. AidData has estimated Bank of China’s contribution by assuming that each lender contributed an equal amount ($111,111,111.11 USD) to the loan syndicate.