Narrative
Full Description
Project narrative
On June 10, 2003, a syndicate of 20 banks — including the Bank of China (BOC) — entered into a €500 million EUR syndicated credit facility agreement with Rémy Cointreau S.A. — a France-incorporated alcoholic beverage production and distribution company headquartered in Cognac and listed on the Euronext Paris with its largest shareholder being ORPAR S.A. (44.29% stake), a France-incorporated company wholly-owned by Andromède S.A., a France-incorporated holding company owned by the Hériard Dubreuil family and its second largest being Récopart S.A. (13.68% stake), a France-incorporated company jointly owned by French businessman Pierre Cointreau (50.82% stake) and by ORPAR (49.18% stake) — for refinancing and general corporate purposes. The facility carried a maturity period of five years, a final maturity date of June 10, 2003, was unsecured, and carried an interest rate of EURIBOR plus an initial margin of 1.20% on the signing date, with further adjustments based on an average net debt / earnings before interest, taxes, depreciation and amortization (EBITDA) grid. The commitment fee was 50% of the applicable margin payable on the undrawn of the facility (0.60% at signing). The facility was divided into a €250 million EUR amortizing term loan (payable in annual installments beginning June 10, 2004 until June 10, 2008 of €37.5 million EUR (2004), €43.75 million EUR (2005), €50.0 million USD (2006), €56.25 million EUR (2007), and €62.5 million EUR (2008)) and a €250 million EUR revolving credit bullet tranche. The loan carried a financial ratio of debt to EBITA and net to finance tested on September 30 and March 31. The proceeds were to used to refinance the existing outstanding amount of €400 million EUR syndicated loan facility signed on June 13, 2000 (€200 million EUR maturing on June 13, 2003 and €200 million EUR maturing on June 13, 2005) and for general corporate purposes. BOC contributed €10 million EUR, as captured by Record ID#110576. On June 7, 2005, a syndicate of 17 banks — including BOC — entered into a €500 million EUR syndicated revolving credit facility (RCF) loan agreement with Rémy Cointreau S.A. — a France-incorporated alcoholic beverage production and distribution company headquartered in Cognac and listed on the Euronext Paris with its largest shareholder being ORPAR S.A. (43.58% stake), a France-incorporated company 79.53% owned by by Andromède S.A., a France-incorporated holding company owned by the Hériard Dubreuil family and its second largest being Récopart S.A. (13.83% stake) — for refinancing purposes. The facility carried a maturity period of five years albeit with two one-year extension options, a final maturity date of June 7, 2010, was unsecured, and carried an interest rate of EURIBOR plus an initial margin of 0.675% on the signing date, with further adjustments based on an average net debt / EBITDA grid ranging from 0.875% if the average debt/EBITDA ratio was greater than 4.25 to 0.325% if the ratio was less than 2.75. The commitment fee was 37.5% of the applicable margin payable on the undrawn of the facility if the average debt/EBITDA ratio was greater than 3.75 and 35% if it was less than 3.75 (0.253125% at signing). The loan carried a financial ratio of debt to EBITA and net to finance tested on September 30 and March 31. The proceeds were used to refinance the €500 million EUR syndicated loan facility signed in 2003, which was cancelled in May 2005. BOC contributed €20 million EUR, as captured by Record ID#110577. In addition to BOC, the following lenders contributed the respective amounts (if known): BNP Paribas S.A. (€40 million EUR), Calyon (€40 million EUR), one Société Générale Corporate and Investment Banking (SGCIB) entity (€40 million EUR), Crédit Mutuel (€34 million EUR), Coöperatieve Rabobank U.A. (Rabobank) (€34 million EUR), another SGCIB entity (€34 million EUR), Commerzbank Aktiengesellschaft (Commerzbank AG), Fortis Bank, Natexis Banques Populaires, WestLB AG, Crédit du Nord (€20 million EUR), HSBC (€20 million EUR), KBC Bank N.V. (€20 million EUR), BRED Banque Populaire (€16 million EUR), Barclays Bank, and Lloyds TSB. BNP Paribas, Calyon, and one SGCIB entity served as mandated lead arrangers and bookrunners. Crédit Mutuel, Rabobank, the other SGCIB, Commerzbank, Fortis Bank, Natexis Banques Populaires, and WestLB served as mandated lead arrangers. BOC, Crédit du Nord, HSBC, KBC, BRED, Barclays, and Lloyds TSB served as arrangers. The loan was oversubscribed but not increased. In May 2006, the lending syndicate — including BOC — entered into an amendment agreement with the borrower; in the amendment, most of the lenders extended €466 million EUR of the facility by one year — a new maturity period of six years — to mature on June 7, 2011, in line with the first amendment option. Record ID#110578 captures BOC's contribution to the debt rescheduling. In June 2007, the lending syndicate — including BOC — entered into an amendment agreement with the borrower; in the amendment, most of the lenders again extended €466 million EUR of the facility by one year — a new maturity period of seven years — to mature on June 7, 2012, in line with the second amendment option. Record ID#110579 captures BOC's contribution to the debt rescheduling. As of March 31, 2010, €370 million EUR was drawn under the facility.