Narrative
Full Description
Project narrative
In mid-August 2006, a syndicate of 13 banks — including the Industrial and Commercial Bank of China (Asia) Limited (ICBC (Asia)) and CITIC Ka Wah Bank entered into a $995 million AUD ($1 billion USD; €858 million EUR) syndicated multi-tranche loan agreement with Myer Holdings Limited — an Australian department store company — for the Myer Acquisition Project. This loan carried a maturity period of six years and was divided into three tranches: a $675 million AUD amortizing term loan tranche, a $300 million AUD revolver tranche, and a $20 million AUD capital expenditure facility tranche. The proceeds were to be used to support the $1.4 billion AUD leveraged buyout of Australian department store chain Myer by a consortium led by American private equity firms Texas Pacific Group (TPG) and Newbridge Capital and Australia's The Myer Family Company (the founders of the company) from Coles Myer. At the time of the acquisition, Myer had 61 stores across Australia. The acquisition was completed on June 2, 2006. Record ID#99491 captures ICBC (Asia)'s contribution. Record ID#99492 captures CITIC Ka Wah Bank's contribution. In addition to these banks, the following lenders contributed to the loan syndicate: Credit Suisse AG, Goldman Sachs JBWere, National Australia Bank Limited (NAB), Aozora Bank, Ltd., Allied Irish Bank (AIB), BayernLB, Chinatrust Commercial Bank, Crédit Mutuel, Oversea-Chinese Banking Corporation (OCBC Bank), St.George Bank, and United Overseas Bank Limited (UOB). Credit Suisse, Goldman Sachs JB Were, and NAB served as mandated lead arrangers.
Staff comments
1. The individual contributions of the 13 lenders to this $995 million AUD syndicated loan is unknown. For the time being, AidData has assumed each lender contributed equally to each tranche and has estimated the contribution of ICBC (Asia) and CITIC Ka Wah Bank by assuming that each lender contributed an equal amount ($76,538,461.5385 AUD) to the syndicated loan. 2. "Loan week, August 4 - 10", published on Friday, August 11, 2006, states that this loan was to be signed the next week. "Corporate Governance: Barbarian’s at the Gate, again." confirms that Newbridge and Texas Pacific took on debt, indicating the loan was signed. The exact date is unknown, however, and for the time being AidData has coded the middle of that next week, Wednesday, August 16, 2006 as the commitment date and marked the commitment_date_estimated? field as True.