ICBC NZ provides a $1.3 million NZD revolving facility as part a $5.3 million NZD loan to Marlborough Wine Estates for refinancing purposes (Linked to Record ID#99564, #99567, #99568, #99569, #99570, and #99571)

Project narrative

On December 18, 2014, Industrial and Commercial Bank of China (New Zealand) Limited (ICBC NZ) entered into a $6,100,000 NZD facility loan agreement with a subsidiary of Marlborough Wine Estates Group Limited (MWE) — a New Zealand winery that owns and operates vineyards in the Awatere Valley of Marlborough — for working capital purposes. This loan carried a maturity period of one year and a final maturity date of December 17, 2015; it was an interest-only loan and, at June 30, 2016, had an interest rate of 5.88%. This loan was secured by (i.e. collateralized against) a registered charge over land located at Blind River Loop Road, Seddon, New Zealand. Record ID#99564 captures this loan. Then, in late 2015 or early 2016, ICBC NZ entered into an amendment agreement with MWE for the $6.1 million NZD loan in which it extended the final maturity date of the loan to September 22, 2016 — extending the maturity period of the loan by nine months (0.75 years) — for a new maturity period of 1.75 years. Record ID#99567 captures this extension. Then, in or around September 2016, ICBC NZ entered into an amendment agreement with MWE for the $6.1 million NZD loan in which it extended the final maturity date of the loan to September 30, 2018 — extending the maturity period of the loan by two years — for a new maturity period of 3.75 years. It included a 12-month extension period. Record ID#99568 captures this extension. The amendment also stipulated that land, dams, and vines acquired by MWE would be subject to a registered charge (secured/collateralized) in favor of ICBC to the extent of the loan balance, in addition to maintaining the original collateral. Additionally, the amendment included an undertaking that MWE would obtain written approval from ICBC before disposing of assets with aggregate values greater than $50,000 NZD. Between December 31, 2016 and June 30, 2017, MWE disposed of assets valued greater than $50,000 NZD, and this was recorded as a current liability as of June 30, 2017 due to MWE being in technical default. However, in July 2017 ICBC issued a remedy and approval letter to MWE. As of December 31, 2016, the interest rate was 4.77%. As of June 30, 2017, the interest rate was 4.51%. As of December 31, 2017, the interest rate was 5.00%. As of June 30, 2018, the interest rate was 4.76%. Then, between July 1, 2018 and December 31, 2018, ICBC NZ entered into an amendment agreement with MWE for the $6.1 million NZD loan in which it extended the final maturity date of the loan to September 30, 2019 — extending the maturity period of the loan by one year — for a new maturity period of 4.75 years. As of December 31, 2018, the interest rate was 4.78%. Record ID#99569 captures this extension. As of June 30, 2019, the interest rate was 4.38%. Then, in September 2019, ICBC NZ entered into an amendment agreement with MWE for the loan in which it extended the final maturity date of the loan to September 30, 2021 — extending the maturity period of the loan by two years — for a new maturity period of 6.75 years. As of June 30, 2020, the interest rate was 3.47%. Additionally, using a shareholder loan, MWE repaid $800,000 NZD of the loan, reducing its value to $5,100,000 million NZD. Record ID#99570 captures this extension. Then, in June 2021, ICBC NZ entered into a $5.3 million NZD loan agreement with MWE to refinance the existing loan. This loan consisted of two tranches: a $4.0 million NZD core debt facility and a $1.3 million NZD revolving debt facility. Both facilities carried a maturity period of two years and three months (2.25 years) and a final maturity date of September 30, 2023. The interest rate for the core debt facility was calculated and paid quarterly with a repayment schedule of $150,000 NZD on or prior to the end of each financial year. The interest rate at June 30, 2021 was 3.07%. This loan was secured by (i.e. collateralized against) a registered charge over all present and after-acquired property of MWE. This included the land at Blind River Loop Road, Seddon, New Zealand. As of December 31, 2021, the interest rate was 3.76%. As of June 30, 2022, the interest rate was 4.83%. As of December 31, 2022, the interest rate was 7.12%. Record ID#99571 captures the $4.0 million NZD core debt facility of this refinancing loan. Record ID#99572 captures the $1.3 million NZD revolving debt facility of this refinancing loan. Between July 1, 2021 and December 31, 2021, MWE repaid $400,000 NZD under the revolving debt facility, bringing the total loan balance to $4,900,000 NZD.