Hongkong and Shanghai Hotels Signs US$158m Term Loan Facility
-- Hotels, 6/25/2009 9:24:00 AM
The Hongkong and Shanghai Hotels Ltd. announced that its wholly-owned subsidiary, HSH Financial Services Ltd., has signed a HK$1.225 billion (US$158 million) 4-year term loan facility with a group of seven international banks.The facility, which matures in 2013, is guaranteed by HSH.
The Mandated Lead Arrangers are Australia and New Zealand Banking Group Limited, Bank of China (Hong Kong) Limited, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Calyon, HSBC, Industrial and Commercial Bank of China (Asia) Limited and Standard Chartered Bank (Hong Kong) Limited.
The original target of the Facility was to raise HK$1 billion, but with demand from banks exceeding HK$3 billion, HSH decided to increase the loan size to HK$1.225 billion with each of the MLAs holding HK$175 million. The funds will be used for refinancing existing indebtedness and for general corporate purposes. The Facility is paying a credit margin of 150 basis points.
Commenting on the financing, Mr. Neil Galloway, Chief Financial Officer of HSH said: "This is the first time for several years that HSH has come to market in Hong Kong, and our financing has met with a very strong response from the bank market. We have been able to achieve all of our objectives including stretching our maturity profile, introducing some long term funding at the corporate level and bringing some new lenders into our bank group. The response highlights market confidence in HSH and further strengthens our financial position to take advantage of opportunities as they arise in the current environment."
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