Narrative
Full Description
Project narrative
On March 12, 2020, Bank of China (London Branch) signed onto a revolving syndicated, multi-facility credit worth £6,000,000,000 GBP in total for borrowers B.A.T. International Finance p.l.c., B.A.T. Netherlands Finance B.V, and B.A.T Capital Corporation - who are all subsidiaries of parent organization British American Tobacco p.l.c.. The proceeds of each facility were to be used for general corporate purposes. BRITISH AMERICAN TOBACCO P.L.C. acted as guarantor. £154,000,000 GBP to £3,000,000,000 GBP Revolving Facility A (captured via Record ID#99403); and £154,000,000 GBP to £3,000,000,000 GBP Revolving Facility B (captured via Record ID#99404). Revolving Facility A carried a 1-year maturity (with optional minor extension upon request), and Revolving Facility B has a maturity of 5 years. Two additional facilities (US$ Swingline Facility A & EURO Swingline Facility B) were also committed-to on March 12, 2020, but BOC did not contribute to them. For each facility, the rate of interest on each Revolving Facility Advance and each Term Advance for its Term was 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 would 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 0.15%. BBB+/Baa1 0.20%. BBB/Baa2 0.30%. BBB-/Baa3 or less 0.40%. The Margin for the Term of a Revolving Facility Advance under Revolving Facility B would 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 0.20%. BBB+/Baa1 0.275%. BBB/Baa2 0.375%. BBB-/Baa3 or less 0.475%.
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 0.150% + average 6M LIBOR in March 2020 0.964%. The estimated rate of interest for Revolving Facility B is the highest rating's margin 0.200% + average 6M LIBOR in March 2020 0.964%. 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) commitment fee at the rate of 25 per cent. of the applicable Margin calculated in accordance with Clause 8.3 (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 8.3 (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 Signing Date on a daily basis and is payable quarterly in arrear with the first payment due three months after the Signing Date for the period from the Signing 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 1.114 for Revolving Facility A (0.2785%) and 35% of 1.164 for Revolving Facility B (0.4074%).