Narrative
Full Description
Project narrative
On January 20, 2017, Bank of China (London Branch) signed onto a revolving syndicated, multi-facility credit worth £5,680,000,000 in total for borrowers B.A.T. International Finance p.l.c., British American Tobacco Holdings (The Netherlands) B.V., and B.A.T. Netherlands Finance B.V, B.A.T Capital Corporation - who are all subsidiaries of parent organization British American Tobacco p.l.c.. The proceeds of each facility will be used for general corporate purposes. The total commitment by all banks under Revolving Facility B is £2,840,000,000- of which Bank of China contributed £160 million. The interest rate is 1.615%. BRITISH AMERICAN TOBACCO P.L.C. acted as guarantor. GBP 160 million to Revolving Facility A (captured via Record ID#99335); EUR 26.7 million to Euro Swingline Facility A (captured via Record ID#99341); GBP 160 million to Revolving Facility B (captured via Record ID#99342); and EUR 53.4 to Euro Swingline Facility B (captured via Record ID#99343). Revolving Facility A & Swingline Facility A have 1-year maturities (with optional minor extensions upon request), and Revolving Facility B & Swingline Facility B have a maturity date of May 29, 2021 (4.33 years). Two additional facilities (US$ Swingline Facility A & Facility B) were also committed-to on January 20, 2017; however, because Bank of China did not contribute to either of these, AidData has not created individual projects for them. For each facility, the rate of interest on each Revolving Facility Advance and each Term Advance for its Term is the rate per annum determined by the Agent to be the aggregate of the applicable margin and LIBOR (or, in the case of an Advance denominated in euro, EURIBOR). The Margin for the Term of a Revolving Facility Advance under Revolving Facility A or a Term Advance will be determined on the Rate Fixing Day for that Term by reference to the table below: Rating (S&P/Moody’s) Facility Margin per annum A-/A3 0.200 per cent. BBB+/Baa1 0.275 per cent. BBB/Baa2 0.400 per cent. BBB-/Baa3 or below 0.550 per cent. The Margin for the Term of a Revolving Facility Advance under Revolving Facility B will be determined on the Rate Fixing Day for that Term by reference to the table below: Rating (S&P/Moody’s) Facility Margin per annum A-/A3 0.275 per cent. BBB+/Baa1 0.350 per cent. BBB/Baa2 0.500 per cent. BBB-/Baa3 or below 0.650 per cent. where, for the purposes of this Clause: “Rating” means the corporate rating of the Parent assigned by S&P (currently known as the “Corporate Credit Rating”) and/or Moody’s (currently known as the “Issuer Rating”) as at the Rate Fixing Day on which the Margin is being determined.
Staff comments
1. As the "applicable margin" depends on the organizations' rating, AidData has estimated the rate of interest for Revolving Facility A as the highest rating's margin 0.200% + average 6M LIBOR in January 2017 1.340%. The estimated rate of interest for Revolving Facility B is the highest rating's margin 0.275% + average 6M LIBOR in January 2017, 1.340%. 2. A swingline facility is a sub-limit of a syndicated revolving credit loan whereby a lender makes a short term (not more than five days) loan, in smaller amounts, on shorter notice, and with a higher interest rate than is otherwise available for revolving credit loans. 3. As stated in the loan agreement, "The Parent shall, on behalf of the Borrowers, pay to the US Agent: a) a commitment fee at the rate of 25 per cent. of the applicable Margin calculated in accordance with Clause 8.2 (Calculation of the Margin) on the undrawn, uncanceled amount of the Total Revolving Facility A Commitments on each day, for distribution to each Bank pro rata to the proportion its Revolving Facility A Commitment bears to the Total Revolving Facility A Commitments from time to time; and b) a commitment fee at the rate of 35 per cent. of the applicable Margin calculated in accordance with Clause 8.2 (Calculation of the Margin) on the undrawn, uncanceled amount of the Total Revolving Facility B Commitments on each day, for distribution to each Bank pro rata to the proportion its Revolving Facility B Commitment bears to the Total Revolving Facility B Commitments from time to time. Each commitment fee is calculated and accrues from the Closing Date on a daily basis and is payable quarterly in arrear with the first payment due three months after the Closing Date for the period from the Closing Date. Accrued commitment fee is also payable to the US Agent for the relevant Bank(s) on the cancelled amount of its Commitment at the time the cancellation takes effect."; therefore, AidData has calculated the commitment fee as 25% of 1.54 for Revolving Facility A (0.385%) and 35% of 1.615 for Revolving Facility B (0.56525%).