June 1, 2017 / 4:19 AM / 3 months ago

China Lodging seals US$500m acquisition loan

    By Yan Jiang
    June 1 (IFR) - Nasdaq-listed hotel operator China Lodging
Group has signed a debut three-year bullet loan of US$500m to
finance its takeover of a domestic peer.
    The facility, split equally into a term loan and a revolving
credit, drew a strong market response. The loan was signed on
May 18 before full drawdown on May 24.
    Deutsche Bank was the sole original mandated lead arranger
and bookrunner on the loan, paying a top-level all-in pricing of
210bp, based on an interest margin of 175bp over Libor.
    On Monday, China Lodging said its Rmb3.65m (US$535m)
acquisition of peer Crystal Orange Hotel Holdings was completed
on May 25. The two companies announced a definitive agreement on
February 27.
    Beijing-headquartered Crystal Orange is a boutique hotel
operator, founded in 2006, with over 100 hotels across China,
mainly in big cities.
    China Lodging had 3,336 hotels, or 335,900 rooms, as of the
end of March, with a primary focus on economy and mid-scale
hotel segments, it said in the announcement.
    China Lodging is the borrower and its stake in Crystal
Orange is pledged on the loan.
    Allocations are:
                                         US$ (m)
 Mandated lead arrangers & bookrunners      
 Deutsche Bank                            45.0
 Bank of China Macau                      52.5
 ICBC (Asia)                              52.5
 Bank of China (Hong Kong)                40.0
 China Minsheng Banking Corp              40.0
 ICBC Macau                               40.0
 Wing Lung Bank                           40.0
 Mandated lead arrangers                    
 State Bank of India Hong Kong            30.0
 CTBC Bank                                26.5
 Hang Seng Bank                           26.5
 Korea Development Bank                   20.0
 KDB Asia                                  6.5
 Lead arranger                              
 China Construction Bank (Asia)           26.5
 Arrangers                                  
 Siemens Bank Singapore                   15.0
 China Merchants Bank Hong Kong           12.0
 Taishin International Bank               12.0
 Ta Chong Bank Hong Kong                   9.0
 Chang Hwa Commercial Bank                 6.0
 Total                                    500.0
 
 (Reporting by Yan Jiang; editing by Dharsan Singh)
  
 
 

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