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Overview

ICBC contributes to $200 million USD capital funding increase to $875 million USD syndicated loan to Sanmina Corporation for general corporate and working capital purposes in 2019 (Linked to Record ID#110490)

Commitments (Constant USD, 2023)$18,872,500
Commitment Year•2019Country of Activity•United StatesDirect Recipient Country of Incorporation•United StatesOverseas Jurisdiction•United StatesSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Apr 19, 2019
Last repayment (originally scheduled)
Nov 30, 2023

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

  • Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

Private Sector

  • Bank of America, N.A.
  • Bank of the West
  • BMO Harris Bank N.A.
  • Branch Banking and Trust Company (BB&T)
  • Citibank, N.A.
  • Goldman Sachs Bank USA
  • MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU))
  • SunTrust Bank
  • United Overseas Bank Limited (UOB)
  • Wells Fargo Bank N.A.

Receiving agencies

Private Sector

  • Sanmina Corporatio

Loan description

ICBC contributes to $200 million USD capital funding increase to $875 million USD syndicated loan to Sanmina Corporation for general corporate and working capital purposes in the United States in 2019

Interest rate (t₀)•4.129%Interest type•Variable Interest RateMaturity•4.62 years

Narrative

Full Description

Project narrative

On November 30, 2018, financial close was reached on a deal in which a syndicate of 10 banks — including ICBC — entered into a $875 million USD senior, unsecured credit agreement with Sanmina Corporation, an American electronics manufacturing services (EMS) company headquartered in San Jose, California. The financing was structured in two tranches: (1) a $500 million USD revolving credit facility and (2) a $375 million USD delayed draw term loan, both with five-year maturities. The interest rate was LIBOR plus an applicable margin. The proceeds were used for general corporate and working capital purposes. While ICBC contributed to this loan (Record ID#110490), the following lenders also participated: Bank of America, N.A. (Swing Line Lender and Issuing Lender), Bank of the West (Issuing Lender), MUFG Bank, Ltd. (f/k/a The Bank of Tokyo-Mitsubishi UFJ, Ltd.) (Issuing Lender), Wells Fargo Bank, N.A., SunTrust Bank, BMO Harris Bank, N.A., Branch Banking and Trust Company, Citibank, N.A., and Goldman Sachs Bank USA. On April 5, 2019, the company and banks signed Amendment No. 2 to the credit agreement, increasing the total commitment by $200 million USD. The amended facility included the original 10 lenders plus United Overseas Bank, Limited. ICBC's contribution to the facility under the amended agreement is recorded in Record ID#110491.

Staff comments

1. The entirety of the amendment can be accessed at https://www.sec.gov/Archives/edgar/data/897723/000089772319000028/sanminaex103220190629.htm 2. Sanmina Corporation is an American electronics manufacturing services provider headquartered in San Jose, California. The company offers end-to-end manufacturing solutions, including product design, assembly, logistics, and after-market services, serving industries such as communications, computing, defense, aerospace, industrial, medical, and automotive. 3. AidData estimates the interest rate by adding the 6-month average LIBOR rate in April 2019 and an applicable margin based on credit ratings (BB+ or 1.5%). 4, The individual contributions of the 11 lenders to this $299 million USD capital increase are unknown. For the time being, AidData has estimated the contribution of ICBC by assuming that each lender contributed an equal amount ($18181818.1818 USD) to the loan syndicate.