Bank of China contributes to the $50 million AUD tranche of a $200 million AUD syndicated loan to K&S Corporation for capex, working capital, and general corporate purposes (Linked to Record ID#94346)

Project narrative

In April 2020, a syndicate of three banks — consisting of the Bank of China (BOC), National Australia Bank Limited (NAB), and Westpac Banking Corporation — entered into a $200 million AUD syndicated debt facility agreement with K&S Corporation Limited, an Australia-incorporated transportation and logistics company. The $200 million AUD debt facility was divided into two tranches: a $150 million AUD bank bill facility, of which $1 million AUD was a bank guarantee facility, with a maturity period of three years, a final maturity date of April 2023, and an interest rate of BBSY plus an unspecified margin and a $50 million AUD bank bill facility with a maturity period of five years, a final maturity date of April 2025, and an interest rate based on BBSY plus an unspecified margin. The $200 million AUD debt facility was secured by (i.e. collateralized against) fixed and floating charges over the assets of K&S Corporation and registered mortgages over a number of freehold properties of K&S Corporation. The proceeds of the $200 million AUD debt facility were to be used for capital expenditure (capex), working capital, and general corporate purposes, and the facility completely refinanced previous debt arrangements that had included a significant amount of hire-purchase lease contrasts. Westpac and NAB were existing lenders of K&S, and BOC was a new lender. As of June 30, 2020, $67.944 million AUD had been drawn down under the $150 million AUD tranche and $20.00 million AUD had been drawn down under the $50 million AUD. On November 5, 2021, as part of a $199 million AUD refinancing exercise, K&S repaid its facilities with BOC, and brought in Australia and New Zealand Banking Group (ANZ) to replace it as a lender. Record ID#94346 captures BOC's contribution to the $150 million AUD tranche. Record ID#94347 captures BOC's contribution to the $50 million AUD tranche.