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Overview

Bank of China contributes to $1 billion USD syndicated revolving credit facility to Biogen Inc. for debt refinancing purposes in 2020

Commitments (Constant USD, 2023)$103,173,382
Commitment Year•2020Country of Activity•United StatesDirect Recipient Country of Incorporation•United StatesSector•HealthFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 28, 2020
Last repayment (originally scheduled)
Jan 26, 2025

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

  • Bank of America, N.A.
  • Citibank, N.A.
  • Deutsche Bank AG
  • Goldman Sachs Bank USA
  • JPMorgan Chase Bank, N.A. (Chase Bank, formerly the Chase Manhattan Bank)
  • Mizuho Bank (USA) (formerly Mizuho Corporate Bank (USA))
  • Morgan Stanley Bank, N.A.
  • U.S. Bank National Association
  • Wells Fargo Bank N.A.

Receiving agencies

Private Sector

  • Biogen Inc.

Loan description

2020 syndicated $1 billion USD revolving credit facility from BoC and others to Biogen Inc. for debt refinancing purposes in the United States

Interest rate (t₀)•2.896%Interest type•Variable Interest RateMaturity•5 years

Narrative

Full Description

Project narrative

On January 28, 2020, financial close was reached on a deal in which a syndicate of 10 banks — including Bank of China — entered into a $1,000,000,000 USD syndicated loan agreement with Biogen Inc., a Massachusetts-based biotechnology company focused on the discovery, development, and delivery of therapies for neurological and neurodegenerative diseases. The maturity of the loan is 5 years and the interest rate is LIBOR plus an applicable margin. The use of proceeds is for debt refinancing purposes. While Bank of China contributed to this loan (Record ID#107697), the following lenders also participated: Bank of America, N.A.; Citibank, N.A.; Deutsche Bank AG; Goldman Sachs Bank USA; JPMorgan Chase Bank, N.A.; Mizuho Bank (USA); Morgan Stanley Bank, N.A.; U.S. Bank National Association; and Wells Fargo Bank, National Association.

Staff comments

1. The entirety of the 2020 loan contract can be accessed at https://www.sec.gov/Archives/edgar/data/875045/000119312520022940/d854655dex101.htm. The dropbox link is accessible here: https://www.dropbox.com/scl/fi/xxp5btk2gknzhyagvnhst/Source_ID_216334.pdf?rlkey=h9k0i35a2imxyld6y0owq2deh&st=tclcuh4h&dl=0 2. Biogen Inc. is an American multinational biotechnology company headquartered in Cambridge, Massachusetts. Founded in 1978, Biogen focuses on developing therapies for neurological diseases, including multiple sclerosis, amyotrophic lateral sclerosis (ALS), and Alzheimer’s disease. 3. AidData estimates the interest rate by adding the 6-month average LIBOR rate in January 2020 and an applicable margin based on credit ratings (BBB+ or 1.125%). 4. The individual contributions of the 10 lenders to this $1 billion USD syndicated loan are unknown. For the time being, AidData has estimated the contribution of Bank of China by assuming that each lender contributed an equal amount ($100,000,000) to the loan syndicate.