Mandarin Oriental Arranges a HK$3.5 Billion Equivalent
HONG KONG, China, September 5, 2007. Mandarin Oriental International Limited today announced that it had entered into an agreement with a syndicate of 19 international banks to put in place a HK$3.5 billion equivalent (approximately US$450 million) dual tranche secured transferable credit facility. The funds will be used in part to refinance existing borrowings of HK$2.7 billion (approximately US$345 million) and also to provide general working capital to support the Group's growth strategy.
The new facilities increase the average tenor of Mandarin Oriental's existing loans from approximately three to six years. The first tranche is a seven year term loan facility amounting to HK$2 billion (US$257 million) and the second tranche is a seven year revolving credit facility amounting to HK$1.5 billion (US$193 million).
Commenting on the new arrangements, Chief Financial Officer, John Witt, said, "The new facilities not only increase significantly the average term of our bank debt, but are also competitively priced. We are positioning Mandarin Oriental as one of the world's leading luxury hotel brands, with a strong presence in major international leisure destinations and business centres. The proceeds of this syndicated loan will also help us further to capitalize on our luxury brand and support this growth." The four Mandated Co-ordinating Arrangers of the facility are The Bank of Tokyo-Mitsubishi UFJ, Ltd., HSBC, BNP Paribas, and Standard Chartered Bank (Hong Kong) Limited. The facility was substantially oversubscribed upon closing of the general syndication.
Other banks participating in the facility are: Industrial and Commercial Bank of China (Asia) Limited, BBVA, Hong Kong Branch and Bank of Communications Co., Ltd. Hong Kong Branch as Co-ordinating Arrangers; Hang Seng Bank Limited, Shanghai Commercial Bank Ltd., China Construction Bank Corporation, Hong Kong Branch, Chong Hing Bank Limited, Mizuho Corporate Bank, Ltd., Sumitomo Mitsui Banking Corporation and Tai Fung Bank Limited as Arrangers; Nanyang Commercial Bank, Limited, Bank of China (Hong Kong) Limited, Bank of East Asia, Oversea-Chinese Banking Corporation Limited, Hong Kong Branch and Wing Lung Bank, Limited as Senior Managers.
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