Bank of China contributes to a $1 billion USD syndicated revolving credit facility to Stemcor Holding for refinancing and working capital purposes

Project narrative

In May 2007, a syndicate of 47 banks — including the Bank of China (BOC) — entered into a $325 million USD syndicated multi-currency revolving credit facility (RCF) agreement with Stemcor Holdings Limited — an England and Wales-incorporated private company trading in steel products and raw materials for the production of steel based in London, England with chairman Ralph Oppenheimer and his family holding a 71% interest — for general working capital requirements and refinancing purposes. The RCF carried a maturity period of a 364 days. The proceeds were to be used by the borrower for general working capital requirements, and to refinance its existing $75 million revolving credit facility closed in May 2006. Record ID#111053 captures BOC's contribution. Then on May 13, 2008, a syndicate of 51 banks — including BOC and the Industrial and Commercial Bank of China (ICBC) — entered into a $700 million USD syndicated multi-currency RCF agreement with Stemcor Holding Limited for refinancing purposes and to finance its trading activities. The RCF was divided into two tranches: a $550 million USD tranche with a maturity period of one year with a 364-day extension option and a scheduled maturity date of May 13, 2009, a commitment fee of 46.875 basis points (bps), an interest rate of LIBOR plus a margin of 125 bps; and a $150 million USD tranche with a maturity period of three years, a commitment fee of 60 bps, and an interest rate of LIBOR plus a margin of 160 bps. The proceeds were to be used to refinance the $325 million USD RCF from 2007 and to support the company's trading activities. BOC contributed $25 million USD, as captured by Record ID#111054, and ICBC contributed €10 million EUR, as captured by Record ID#111055. Then, in May 2011, a syndicate of 53 banks — including BOC — entered into a $1.000 billion USD syndicated multi-currency RCF agreement with Stemcor Holdings Limited for refinancing and working capital purposes. The RCF was divided into two tranches: a $772.5 million USD tranche with a maturity period of 364 days with two one-year extension options and a final maturity date of May 4, 2012; and a $227.5 million USD tranche with a maturity period of three years. The proceeds of the $772.5 million USD tranche were to be used to replace (refinance) and cancel an existing $562 million USD 364-day RCF dated May 4, 2010 and for general corporate purposes. The proceeds of the $227.5 million USD tranche were to be used to replace (refinance) and cancel an existing $150 million USD three-year loan from May 2008 and a two-year forward start facility dated May 4, 2010 and for general commercial purposes in the ordinary course of business. Record ID#111056 captures BOC's contribution. In addition to BOC, the following lenders contributed to the loan syndicate: ABN AMRO Bank N.V., BNP Paribas S.A., ING Group N.V., Royal Bank of Scotland (RBS), Société Générale S.A. (SocGen), Standard Chartered Bank plc, Crédit Agricole Corporate and Investment Bank (CACIB), Credit Europe Bank, Credit Suisse AG, DBS Bank, HSBC Bank, Garanti Bank, Natixis, Nedbank, Commonwealth Bank of Australia (CBA), and UBS AG. ABN AMRO, BNP Paribas, ING, RBS, SocGen, and Standard Chartered Bank served as active bookrunners and mandated lead arrangers. BOC, CACIB, Credit Europe Bank, Credit Suisse, DBS, HSBC, Garanti Bank, Natixis, and Nedbank served as mandated lead arrangers and bookrunners. CBA served as mandated lead arranger and UBS served as lead arranger. The loan was launched in syndication at the end of March 2011 at $650 million USD before being oversubscribed to $1 billion USD. Then, on April 26, 2012, a syndicate of 45 banks — including BOC — entered into a $850 million USD syndicated RCF agreement with Stemcor Holdings Limited for refinancing purposes. The RCF carried a maturity period of 364 days. The proceeds were to be used by the borrower to refinance the $772.5 million USD tranche maturing on May 4, 2012. Record ID#111057 captures BOC's contribution.