China CITIC Bank International provides USD 75 million mezzanine debt financing facility to CB Medical Holdings Limited to finance the acquisition of Biosensors International

Project narrative

On October 9, 2015, two Bank of China branches -- Macau and Singapore -- signed a letter of commitment with CB Medical Holdings Limited, an indirectly-owned subsidiary of CITIC Private Equity Funds Management Co., Ltd., to provide three loan facilities to finance the acquisition of Biosensors International Group, Ltd, one of the world's largest cardiac stent manufacturers. Additionally, in 2015, China CITIC Bank International committed to providing a USD 75 million mezzanine debt financing facility to help fund the acquisition. On October 23, 2015, an offer was made to acquire the remaining 80.43% stake in Biosensors International Group, Ltd. at an offer per share of SGD 0.84. On November 3, 2015, CITIC Private Equity signed an agreement to acquire the remaining shares for a total of SGD 1.2 billion in cash. On April 5, 2016, the shareholders of Biosensors announced that they had approved the transaction, with the amalgamation conditions being satisfied on April 7, 2016. The amalgamation was completed on April 8, 2016. The lending details for each facility are as follows: - A USD 80 million cash bridge loan facility from Bank of China ("Facility A"), which has a maturity of one year from the first utilization of the facility and carries an interest rate of LIBOR plus 225 basis points (as captured via Records ID #97902 and #109770). - A USD 140 million term loan facility from Bank of China ("Facility B"), which has a maturity of three years from the first utilization of the facility and carries an interest rate of LIBOR plus 225 basis points (as captured via Records ID #97903 and #109771). - A USD 380 million term loan facility from Bank of China ("Facility C"), which has a maturity of five years from the first utilization of the facility and carries an interest rate of LIBOR plus 350 basis points. The amount of this facility is the lower of the amount equal to 60% of the total capitalization of Biosensors calculated on the basis of the cash consideration per share less USD 220 million, or USD 380 million (captured via Records ID #97904 and #109775). Additionally, China CITIC Bank International provided a USD 75 million mezzanine debt financing facility to help fund the acquisition, though lending details are unknown (captured via Record ID #97905). After the acquisition of Biosensors International was completed, the loan repayment went smoothly. As of May 18, 2016, the full loan and interest of Facility A had been repaid. By January 18, 2018, all parts of Facility C had been repaid in batches. The final repayment date of Facility B is unclear, however Bank of China had obtained a RMB guarantee from Jiwei Medical (the domestic subsidiary of Baisheng International that was released by Bank of China on January 26, 2018.