Chevalier (HK) upsized its five-year syndicated loan from HK$300 million to HK$350 million last week. The deal was oversubscribed to the tune of HK$500 million when syndications closed. BNP Paribas and DBS Bank were the coordinating arrangers and joint bookrunners for the deal, which featured a spread of 72bp over Hibor.
Allocations were finalized yesterday (Monday) with BNP Paribas and DBS Bank committing HK$60 million each, while five other banks joined on the arranger level. Commitments of HK$42 million each were received from Bank of China, ICBC Asia, International Bank of Asia (IBA) and UFJ Bank. Bank of East Asia (BEA) pitched in with HK$36 million, while Jian Sing Bank joined as co-arranger with a HK$26 million commitment.
Banks receive fees of 60bp flat for initial commitments of HK$60-HK$70 million, 50bp flat for HK$40-HK$50 million and 40bp flat for HK$20-HK$30 million.
Chevalier will utilize the proceeds from the loan for refinancing and general working capital purposes. Amortisations for the five-year term loan will start at the end of the second year.
Chevalier is a diversified conglomerate headquartered in Hong Kong with operations in North and Southeast Asia, Canada and the United States. Its businesses include construction and engineering, property development, retailing, travel and insurance.
