Narrative
Full Description
Project narrative
On March 20, 2020, financial close was reached on a deal in which a syndicate of 23 banks — including ICBC — entered into a $1.6 billion USD syndicated loan agreement with Arconic Rolled Products Corporation (to be known as Arconic Corporation) — a U.S.-based manufacturer of rolled aluminum products primarily serving the aerospace, automotive, commercial transportation, and industrial markets. This loan was divided into two tranches: a $600 million USD seven-year term loan and a $1 billion USD five-year revolving credit facility. The maturity of the loan is seven years, and the interest rate is LIBOR plus an applicable margin. The proceeds were used by the borrower for general corporate purposes and to support the company’s spin-off from its parent company, Arconic Inc., into a standalone entity. This spin-off was part of a strategic realignment to separate Arconic's rolled products business from its engineered products and solutions. While ICBC contributed to this loan, the following lenders also participated: JPMorgan Chase Bank, N.A.; Citibank, N.A.; Goldman Sachs Bank USA; ABN AMRO Capital USA LLC; BNP Paribas; Credit Suisse AG, Cayman Islands Branch; Deutsche Bank AG New York Branch; Fifth Third Bank, National Association; Mizuho Bank, Ltd.; PNC Bank, National Association; Sumitomo Mitsui Banking Corporation; The Toronto-Dominion Bank, New York Branch; Truist Bank; U.S. Bank National Association; Citizens Bank, N.A.; The Huntington National Bank; ING Capital LLC; M&T Bank; Nomura Corporate Funding Americas, LLC; The Northern Trust Company; and Standard Chartered Bank.
Staff comments
1. The entirety of the 2020 loan contract can be accessed at https://www.sec.gov/Archives/edgar/data/1790982/000114036120007070/ex10_1.htm. The dropbox link is accessible here: https://www.dropbox.com/scl/fi/0k2k3vi0c6g6toizdpgmr/Source_ID_220465.pdf?rlkey=p37tewfiuzrha4n08js3gcmep&st=twh6g8hl&dl=0 2. Arconic Rolled Products is an American manufacturer headquartered in Pittsburgh, Pennsylvania. It specializes in rolled aluminum products for various markets, including aerospace and automotive. 3. AidData estimates the interest rate by adding the 6-month average LIBOR rate in March 2020 and an applicable margin based on Arconic's credit rating at the time (2%). 4. AidData takes the average of both tranches (7 years and 5 years) to be the estimated maturity (6 years). 5. The individual contributions of the 23 lenders to this $1.6 billion USD syndicated loan are unknown. For the time being, AidData has estimated the contribution of ICBC by assuming that each lender contributed an equal amount — approximately $69,565,217.39 USD — to the loan syndicate.