China Construction Bank contributes to the $25 million NZD capital expenditure facility tranche of a $63.6 million NZD syndicated loan to EROAD for growth capital expenditure requirements (Linked to Record ID#98978, #98979, and #98981)

Project narrative

On March 26, 2020, a syndicate of two banks — China Construction Bank Corporation (CCB) and Bank of New Zealand (BNZ) — entered into a $60.0 million NZD syndicated loan agreement with EROAD Limited — a New Zealand-based road charging and road transport compliance and safety company — for its growth management and working capital requirements. At the time of signing, the loan consisted of four tranches with the following face values: a $18.0 million NZD Term Loan Facility A, a $18.1 million NZD Term Loan Facility B, a $20.0 million NZD capital expenditure facility, and a $3.9 million NZD overdraft facility. As of March 31, 2021, the loan's face value increased to $63.6 million NZD. The $18.0 million NZD Term Loan Facility A carried a maturity of 36 months, a final maturity date of March 2023, and a variable interest rate based on the BKBM bid rate plus a margin of 3.5%, with principal repayments due to begin quarterly in December 2020 (a grace period of nine months) and the full outstanding balance payable on the maturity date. EROAD could select an interest period of one, two, three, or six months. The proceeds of Facility A were to be used to refinance existing debt. As of March 31, 2021, Facility A's face value decreased to $15.5 million NZD. Record ID#98978 captures CCB's contribution. The $18.1 million NZD Term Loan Facility B carried a maturity of 36 months, a final maturity date in March 2023, and a variable interest rate based on the BKBM bid rate plus a margin of 3.5%. This was an interest-only term facility with full repayment due on the termination date (a grace period of 36 months). The proceeds of Facility B were to be used to refinance existing debt and general corporate purposes. As of March 31, 2021, Facility B's face value remained at $18.1 million NZD. Record ID#98979 captures CCB's contribution. The $20.0 million NZD capital expenditure facility was available for drawdown in NZD or USD, carried a maturity of 36 months, a final maturity date in March 2023, a variable interest rate, based on the BKBM bid rate for NZD drawings or USD LIBOR for USD drawings, plus a margin of 3.5%. EROAD could select an interest period of one, two, three, or six months. Interest payments were due on the last day of the determined interest period. The full outstanding balance was payable on the maturity date. The facility also carried a commitment fee of 45% (or 0.711%) of the per annum margin (1.58%) that was payable on the undrawn balance of the balance quarterly in arrears. The proceeds of the capital expenditure facility were to be used to fund growth capital expenditure requirements. As of March 31, 2021, the capital expenditure facility's face value increased to $25 million USD. Record ID#98980 captures CCB's contribution. The $3.9 million NZD overdraft facilities was an on-demand facility based on the Market Connect Overdraft Prime Rate plus a margin of 1.5%. The proceeds were to be used for general working capital purposes. As of March 31, 2021, the $5.0 million NZD overdraft facility increased to $5.0 million NZD. Record ID#98981 captures CCB's contribution. This loan carried covenants including a debt service cover ratio, an interest cover ratio, a leverage ratio, and obligor assets to group assets. This loan was secured by (i.e. collateralized against) an all obligations cross-guarantee granted by EROAD Australia Pty Limited and EROAD Inc. in favor of BNZ (Security Trustee for the banking syndicate). In respect of the obligations of EROAD Limited, and a General Security Agreements granted by EROAD Limited, EROAD Inc., and EROAD Australia Pty Limited in favor of BNZ. The facility agreement also included the ability for additional syndication lenders to be added with potential to increase the total facilities up to $66.0 million NZD. During the 2022 fiscal year (April 1, 2022 to March 31, 2022), BNZ and AUZ entered into a $90 million NZD syndicated loan agreement with EROAD that refinanced the BNZ-CCB loan facility.