Bank of China, Milan Branch contributes to a €211.67 million EUR syndicated loan to Ferretti International Holding for unspecified purposes

Project narrative

On December 18, 2014, the London and Milan Branch of the Bank of China (BOC) entered into a €211,670,000 EUR loan agreement with Ferretti International Holding S.p.A. — an Italy-incorporated holding company then owned by Weichai Holding Group Hong Kong Investment Co. Ltd., a Hong Kong-incorporated wholly-owned subsidiary of Weichai Group Holdings Limited, a China-incorporated wholly-owned subsidiary of Shandong Heavy Industry Group Co., Ltd. (SHIG), a Chinese provincial-owned multinational company owned by State-owned Assets Supervision and Administration Commission of Shandong Province (70%), Shandong SASAC wholly-owned subsidiary Shandong Guohui Investment Co., Ltd. (20%), and the Shandong Provincial Council for Social Security Fund (10%) (75% stake); by The Royal Bank of Scotland plc (RBS) (16.63% stake); by a series of investment funds attributable to a group of funds managed by Strategic Value Partners, LLC (7.52% stake); by Contrarian Capital Management LLC (0.83% equity stake); by Butler Management Limited, an England and Wales-incorporated wholly-owned subsidiary of WB Finance et Partenaires S.A., a France-incorporated holding company for French businessman Walter Butler (0.02% stake) — for unspecified purposes. Record ID#109749 captures the contribution of the London Branch of BOC. Record ID#109847 captures the contribution of the Milan Branch of BOC. The same day, Ferretti International entered into a €211,670,000 EUR shareholder loan agreement with its wholly-owned subsidiary Ferretti S.p.A. The loan carried a maturity period of three years and a final maturity date of December 18, 2017. On December 12, 2017, the Hong Kong Branch of the Industrial and Commercial Bank of China (ICBC) entered into a €85,000,000.00 EUR loan agreement with Ferretti International Holding S.p.A. — now owned by Weichai Holding Group Hong Kong Investment Group (86.8% stake), by F Investments S.A., a Luxembourg-incorporated holding company for company director and Italian billionaire businessman Piero Ferrari for his family (13.2% stake), and by Butler Management Limited, an England and Wales-incorporated wholly-owned subsidiary of renamed Butler Investments S.A. (0.02% stake) — for refinancing purposes. Weichai Holding Group Hong Kong Investment Co. and Ferretti International Holding provided guarantees for the loan. The loan included financial covenants requiring asset coverage less than 60%, interest coverage equal to or greater than 5%, and debt coverage less than 7.2% at December 31, 2019, and 6.9% at subsequent reporting dates. The proceeds were used to refinance the 2014 BOC loan. Record ID#109848 captures the ICBC loan. On December 11, 2017, the Milan Branch of China Construction Bank (Europe) S.A. entered into a €126,670,000.00 EUR loan agreement with Ferretti International Holding S.p.A. for refinancing purposes. Weichai Holding Group Hong Kong Investment Co. and Ferretti International Holding provided guarantees for the loan. The loan included financial covenants requiring asset coverage less than 60%, interest coverage equal to or greater than 5%, and debt coverage less than 7.2% at December 31, 2019, and 6.9% at subsequent reporting dates. The proceeds were used to refinance the 2014 BOC loan. Record ID#109849 captures the CCB Europe loan. On December 15, 2017, Ferretti International Holding S.p.A., amended and renewed the shareholder loan to Ferretti S.p.A. for an additional three years, with a final maturity date of December 10, 2020, and an interest rate of six-month Euribor rate plus a zero floor, plus an annual spread of 1.3% on the €85,000,000 EUR on-lent portion and 1.5% on the €126,670,000 EUR portion, to be used to repay the drawdowns under the ICBC and CCB Europe loans and other financial needs and general cash requirements.