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Overview

Bank of China contributes $15 million USD to $750 million USD syndicated revolving credit facility to Jones Apparel Group USA for refinancing current debt, working capital and general corporate purposes

Commitments (Constant USD, 2023)$30,064,958
Commitment Year•2005Country of Activity•United StatesDirect Recipient Country of Incorporation•United StatesSector•Business And Other ServicesFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
May 16, 2005
Last repayment (originally scheduled)
May 15, 2010

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 (BOC)

Cofinancing agencies

Private Sector

  • Banca di Roma S.p.A.
  • Bank Leumi USA
  • Bank of America, N.A.
  • Bank of New York
  • Bank of Nova Scotia (Scotiabank)
  • Barclays Bank PLC
  • Bear Stearns Corporate Lending Inc. (now part of JPMorgan Chase)
  • Chang Hwa Commercial Bank Limited
  • Citibank, N.A.
  • E.SUN Commercial Bank, Ltd.
  • Fifth Third Bank
  • First Commercial Bank Limited
  • Hua Nan Commercial Bank, Ltd. (HNCB)
  • Israel Discount Bank (IDB)
  • JPMorgan Chase Bank, N.A. (Chase Bank, formerly the Chase Manhattan Bank)
  • Mizuho Bank (USA) (formerly Mizuho Corporate Bank (USA))
  • MUFG Union Bank, N.A. (formerly Union Bank of California, N.A.)
  • Norinchukin Bank (Nochu Bank)
  • Standard Chartered Bank PLC
  • Sumitomo Mitsui Banking Corporation (SMBC)
  • SunTrust Bank
  • Taipei Fubon Commercial Bank Co., Ltd. (Taipei Fubon Bank)
  • The Governor and Company of the Bank of Ireland
  • U.S. Bank National Association
  • UFJ Bank
  • Wachovia Bank, N.A.

State-owned Banks

  • Bank of Taiwan
  • Royal Bank of Scotland (RBS)

Receiving agencies

Private Sector

  • Premier Brands Group (formerly Nine West Holdings or Jones Apparel Group USA, Inc.)

Loan description

BOC contributes to $750 million USD syndicated revolving credit facility to Jones Apparel Group USA for refinancing, working capital, and general corporate purposes in 2005

Interest rate (t₀)•3.98%Interest type•Variable Interest RateMaturity•5 years

Narrative

Full Description

Project narrative

On May 16, 2005, financial close was reached on a deal in which a syndicate of 30 banks — including Bank of China — entered into a $750 million USD syndicated loan agreement with Jones Apparel Group USA, Inc., a Pennsylvania-based apparel and footwear company operating as a subsidiary of Jones Apparel Group Inc. The maturity of the loan is 5 years and the interest rate was LIBOR plus an applicable margin. The use of proceeds is for refinancing current debt, working capital and general corporate purposes. While Bank of China contributed $15 million USD to this loan, the following lenders also participated: JPMorgan Chase Bank, N.A. ($65 million USD), Citibank, N.A. ($65 million USD), Bank of America, N.A. ($65 million USD), Barclays Bank PLC ($65 million USD), SunTrust Bank ($65 million USD), Wachovia Bank, N.A. ($65 million USD), The Governor and Company of the Bank of Ireland ($35 million USD), The Royal Bank of Scotland plc ($35 million USD), Standard Chartered ($35 million USD), Bank of Taiwan, New York Agency ($25 million USD), UFJ Bank Limited, New York Branch ($25 million USD), Fifth Third Bank ($15 million USD), Mizuho Corporate Bank, Ltd. ($15 million USD), Sumitomo Mitsui Banking Corporation ($15 million USD), The Bank of Nova Scotia ($15 million USD), U.S. Bank National Association ($15 million USD), Union Bank of California, N.A. ($15 million USD), Banca Di Roma – New York Branch ($10 million USD), Bank Leumi USA ($10 million USD), Bear Stearns Corporate Lending Inc. ($10 million USD), Chang Hwa Commercial Bank, Ltd. ($10 million USD), First Commercial Bank, New York Agency ($10 million USD), Hua Nan Commercial Bank, Ltd. ($10 million USD), Israel Discount Bank of New York ($10 million USD), Taipei Fubon Bank New York Agency ($10 million USD), The Bank of New York ($10 million USD), E.Sun Commercial Bank, Ltd. ($5 million USD), and The Norinchukin Bank, New York Branch ($5 million USD). On June 6, 2008 and on January 9 2009, the borrower and the lenders signed amendments in which they changed certain definitions.

Staff comments

1. The entirety of the 2005 loan contract can be accessed at https://www.sec.gov/Archives/edgar/data/874016/000095012310070185/y85661exv10w6.htm. The dropbox link is accessible here: https://www.dropbox.com/scl/fi/myutiia5tmhsqz5vzhcjk/Source_ID_215774.pdf?rlkey=dtb9nivihxuinitdfa5m3nylg&st=ccvgrr8m&dl=0 2. Jones Apparel Group USA, Inc. is a Pennsylvania-based clothing company and a subsidiary of Jones Apparel Group Inc., which was known for its portfolio of apparel brands including Nine West, Anne Klein, and Jones New York. The parent company was acquired by Sycamore Partners in 2014 and eventually became part of Nine West Holdings. 3. AidData estimates the interest rate by adding the 6-month average LIBOR rate in May 2005 (approximately 3.39%) and an applicable margin based on credit ratings (BBB or 0.50%).