ICBC contributes to debt rescheduling of $1.5 billion USD syndicated revolving credit facility — via one year maturity extension — to Applied Materials for general corporate purposes in 2023 (Linked to Record ID#107532)

Project narrative

On January 26, 2007, financial close was reached on a deal in which a syndicate of 13 banks — including ICBC, China Construction Bank, and Bank of China — entered into a $1,000,000,000 USD syndicated loan agreement with Applied Materials, Inc., a Delaware-based company that supplies equipment, services, and software for the manufacture of semiconductor chips for electronics, flat panel displays, and solar products. The maturity of the loan is 5 years and the interest rate was LIBOR plus an applicable margin. The use of proceeds was for general corporate purposes, including commercial paper backstop, share repurchases, and acquisitions. The proceeds were used by the borrower for general corporate purposes, including the backstopping of commercial paper, share repurchases, and acquisitions. These purposes are typical for flexible revolving credit facilities extended to investment-grade borrowers. While ICBC contributed $70,000,000 USD to this loan (Record ID#107529, the following lenders also participated: China Construction Bank ($70,000,000 USD) (Record ID#107530) Bank of China ($30,000,000 USD) (Record ID#107531) Citicorp USA, Inc. ($150,000,000 USD), Bank of Tokyo-Mitsubishi UFJ, Ltd. ($150,000,000 USD), JPMorgan Chase Bank, N.A. ($90,000,000 USD), KeyBank National Association ($90,000,000 USD), Bank of America, N.A. ($70,000,000 USD), Mellon Bank, N.A. ($70,000,000 USD), William Street Commitment Corporation ($70,000,000 USD), Morgan Stanley Bank ($70,000,000 USD), and DBS Bank Ltd. ($70,000,000 USD). On May 22, 2009, the lenders and borrower entered into an amendment in which they altered certain definitions. In 2011 and 2015, borrowers entered into new loan agreements and replaced the 2007 agreement. There is no Chinese involvement. On February 21, 2020, financial close was reached on a deal in which a syndicate of 12 banks — including ICBC — entered into a $1,500,000,000 USD syndicated loan agreement with Applied Materials, Inc., a Delaware-based company that supplies equipment, services, and software for the manufacture of semiconductor chips for electronics, flat panel displays, and solar products. The maturity of the loan is 5 years and the interest rate was LIBOR plus an applicable margin. The use of proceeds was for general corporate purposes. The proceeds were used by the borrower for general corporate purposes, as stated in the credit agreement. The loan agreement also includes provisions for letters of credit up to $400 million and allows Applied Materials to increase the facility up to $2 billion USD, subject to lender consent. While ICBC contributed to this loan (Record ID#107532), the following lenders also participated: JPMorgan Chase Bank, N.A., Citibank, N.A., MUFG Bank, Ltd., U.S. Bank National Association, Wells Fargo Bank, National Association, Bank of America, N.A., Mizuho Bank, Ltd., BNP Paribas, Goldman Sachs Bank USA, The Bank of New York Mellon, and KeyBank National Association. On July 27, 2022, the lenders and borrower entered into an agreement in which they replaced LIBOR with SOFR. On February 21, 2023, the borrower and lenders entered into an agreement in which they extended the maturity to February 21, 2026. ICBC’s contribution is recorded in Record ID#107533.