Chelsea Logistics and Infrastructure Holdings Corp. secures $220 million loan from Bank of China for acquisition of stake in 2GO Group (Linked to Record ID#49832)

Project narrative

On May 18, 2017, Chelsea Logistics and Infrastructure Holdings Corporation signed a $220 million (P10.9 billion) bridge loan agreement with the Bank of China. The loan carried an interest rate of LIBOR plus a 3.2% margin and it was payable in one year. The loan was secured by (i.e. collateralized with) Nenaco shares held by KGLI-NM. It was also supposed by a corporate guarantee from Udenna Corp. and the individual surety of spouses Dennis A. Uy and Cherylyn C. Uy. The proceeds of the loan were to be used by the borrower to facilitate the acquisition of an equity stake in an integrated transport solutions provider, 2GO Group, Inc.. More specifically, the proceeds of the loan were to be used by the borrower to partially finance the acquisition of the remaining 20% stake of Negros Holdings & Management Corporation (NHMC) in KGLI-NM Holdings, Inc. (KGLI-NM) and for the tender offer of Negros Navigation Co., Inc. (NNC) and 2Go shareholders while the remaining balance represented the equity component of the acquisition of a shipping company undergoing due diligence. As of July 2017, $120 million had been disbursed by the lender to the borrower.