Bank of China contributes to GBP 550 million revolving credit facility to Rentokil Initial for general corporate purposes (Linked to Record ID#99788, #99789)

Project narrative

On September 8, 2021, the Bank of China (BOC), through its London branch, contributed an estimated GBP 32.352 million in committed funds to a GBP 550 million revolving credit facility to Rentokil Initial for general corporate purposes (#99787). The facility was originally signed on January 27, 2015, but Bank of China's participation in the original closing has not been verified. The facility carried a maturity of five (5) years with two one-year extension options, both of which were likely exercised, and an interest rate of a margin, ranging from 0.3% to 0.6% based on Rentokil's credit rating but likely at 0.4% throughout the life of the loan, and contemporary SOFR. The new date also amended the terms of the facility, permanently removing all financial covenants and ending Rentokil's subsidiary Rentokil Initial 1927's role as guarantor. Seventeen (17) institutions contributed to the lending syndicate. These institutions were: Banco Santander, Bank of America, Bank of China (BOC), Barclays, Bayerische Landesbank (BayernLB), BNP Paribas, DBS Bank, Goldman Sachs, HSBC, ING Bank, JP Morgan, Mizuho Bank, Bank of Nova Scotia (Scotiabank), Skandinaviska Enskilda Banken (SEB), Standard Chartered Bank, United Overseas Bank (UOB), and Wells Fargo. Then, on February 25, 2022, the revolving credit facility was amended and restated, effective at the date of Rentokil Initial's successful acquisition of Terminix, which occurred on October 12, 2022 (#99788). The size of the facility was increased to GBP 1 billion with an additional GBP 250 million accordion (uncommitted potential funds) option. Bank of China (BOC), through its London branch, contributed an estimated GBP 62.5 million in committed funds. The new facility had a maturity of five (5) years with an addition two one-year extension options and an unknown interest rate. The facility was intended to support the working capital requirements of the new group. Sixteen (16) institutions contributed to the lending syndicate. These institutions were: Banco Santander, Bank of America, Bank of China (BOC), Barclays, BNP Paribas, Fifth Third Bank, Goldman Sachs, HSBC, ING Bank, JPMorgan, Mizuho Bank, Skandinaviska Enskilda Banken (SEB), Standard Chartered Bank, Bank of Nova Scotia (Scotiabank), United Overseas Bank (UOB), and Wells Fargo. Concurrently on February 25, 2022, Bank of China (BOC), through its London branch, contributed an estimated $46.66 million to Facility B, sized at $700 million, of an additional bridge loan to Rentokil Initial to support costs associated with the company's acquisition of Terminix (#99789). The full size of the loan was $2.7 billion and contributed to the $6.7 billion acquisition deal. The facility had a maturity of three (3) years and an interest rate of an unknown margin, based on Rentokil Initial's credit rating, plus contemporary SOFR. The facility required Rentokil Initial to drawdown the entirety of the available credit at one time. In addition, the facility carried a commitment fee of 0.20% per lender before June 30, 2022, and of 0.30% per lender after that date through the facility's maturity. There was also a currently unknown arrangement fee due to each lender determined in a private agreement. Fifteen (15) institutions participated in the lending syndicate. Barclays acted as documentation agent and Skandinaviska Enskilda Banken (SEB) acted as agent. Bank of China (BOC), Banco Santander, Bank of America, HSBC and HSBC UK, ING Bank, Wells Fargo, BNP Paribas, Fifth Third Bank, JPMorgan, Mizuho Bank, the Bank of Nova Scotia (Scotiabank), Standard Chartered Bank, and United Overseas Bank (UOB) also participated.