unanimously accepted the suggestion.
Hanergy Thin Film Power’s Hong
Kong stock has been suspended since it
plummeted nearly 47% in less than an
hour of trading on May 20 2015, ending a
run that had seen the company’s market
capitalisation more than treble since
November 2014.
Hong Kong’s Securities and Futures
Commission then launched an investigation
in the company.
HONG KONG
SYNDICATED LOANS
› XINYI GLASS TO BREAK WITH COVENANT
Chinese automobile glass maker XINYI GLASS
HOLDINGS is looking to amend the covenant
package on its HK$750m (US$96m) three-
year bullet deal launched last month.
The Hong Kong-listed company is seeking
the removal of a dividend payout covenant
that caps the annual dividend payout at 50%
of the guarantor’s consolidated net profit
after tax and prohibits dividend payments
from being declared in the event of default.
Sole mandated lead arranger and
bookrunner Sumitomo Mitsui Banking Corp has
asked banks to revert with their consent to
the removal of the covenant by November 2.
Some banks that have already committed
to the deal will need credit approval for the
change.
XINYI GROUP (GLASS), a unit of Xinyi Glass,
is the borrower for the financing, which
pays a top-level all-in of 118bp based on an
interest margin of 90bp over Hibor. Xinyi
Glass is the guarantor.
Financial covenants remain unchanged
and require the guarantor’s tangible net
worth at a minimum of HK$8bn, Ebitda-to-
interest expense ratio at a minimum of 4.5x
and the ratio of total borrowings to tangible
net worth capped at 7x.
Xinyi Glass has production bases in seven
Chinese cities as well as Malaysia.› TWO JOIN HNA'S HK$5BN KAI TAK LOANTwo banks have joined HNA GROUP’s four-
year term loan of up to HK$5.047bn that
refinanced a bridge facility for the purchase
of a land parcel in Hong Kong’s Kowloon
district and will be used to develop the plot.
China Citic Bank International and Shanghai
Commercial & Savings Bank have committed
HK$500m each and joined the facility via
an accession agreement.
This brings the total committed amount
to HK$4bn, after DBS Bank and Shanghai
Commercial Bank each provided HK$1.5bn
earlier this year.
DBS is also the facility agent.
HNA Group’s Hong Kong-listed unit HONGKONG INTERNATIONAL CONSTRUCTION INVESTMENT
MANAGEMENT GROUP is the guarantor, while
its indirect wholly owned subsidiary MILWAY
DEVELOPMENT is the borrower.
The loan paid an all-in pricing of 305bp
through an interest margin of 275bp over
Hibor.
HNA Finance I, an indirect subsidiary of
HNA Group, holds 74.66% of HKICIM Group.
Funds are to finance the development
of a 9,482-square-metre land site in Kai
Tak, Kowloon, and refinance a HK$2.98bn
one-year bridge signed in June 2017.
That facility partly funded the group’s
HK$7.44bn acquisition of the plot in March
last year. DBS was also the facility agent of
the bridge, which offered an all-in of 190bp
via a margin of 150bp over Hibor.› MINMETALS LAND CLUBS HK$3.5BN LOANAllocations and pricing have emerged for
Minmetals Land’s HK$3.5bn four-year club
loan with 10 banks.
The loan offered an all-in pricing in the
high 200s via an interest margin of 200bp
over Hibor.
Subsidiary ONFEM FINANCE is the borrower
of the self-arranged transaction, while the
Hong Kong-listed parent is the guarantor.
Minmetals Land is the real estate flagship
of state-owned China Minmetals Corp,
which is rated Baa1/BBB+/BBB+ (Moody’s/
S&P/Fitch).
For full allocations, see http://www.ifrasia.com.Bestway Global paddles into loan markets
Loans Outdoor leisure product manufacturer launches US$100-$150m refiHong Kong-listed BESTWAY GLOBAL HOLDING has
launched a US$100m–$150m term loan.
Standard Chartered (Hong Kong) is the
mandated lead arranger, bookrunner and
facility agent of the borrowing.
Bestway Global and its unit Bestway
Enterprise are providing joint and several
guarantees, while the listed company’s
wholly owned subsidiary BESTWAY (HONG KONG)
INTERNATIONAL is the borrower.
The three-year amortising loan has an
interest margin of 245bp over Libor and an
average life of 2.625 years.
Banks have been invited to join as mandated
lead arrangers with commitments of US$30m
or more for an upfront fee of 144bp and a top-
level all-in pricing of 300bp, lead arrangers
with tickets of US$20m–$29m for a fee of
131bp and 295bp all-in, and arrangers with
commitments of US$10m–US$19m for a fee of
118bp and an all-in of 290bp.A site visit to Nantong, Jiangsu, will be
held on November 12-13. Commitments are
due by November 23.
Repayments will be through four semi-
annual instalments after a 1.5-year grace
period: 10% (18th month), 15% (24th and
30th months) and 60% (36th month).
A commitment fee of 35bp applies during
a six-month availability period.
Financial covenants require Bestway
Global’s ratio of consolidated total net debt
to consolidated tangible net worth capped
at 0.7x, the ratio of consolidated Ebitda to
consolidated total interest expense at a
minimum of 5x, consolidated tangible net
worth at a minimum of US$350m, the ratio
of consolidated total net debt to consolidated
Ebitda capped at 3.5x and the dividend
payout ratio capped at 30%.
Ownership covenants require Bestway
Global to own 100% of the borrower, BestwayEnterprise and Bestway Resources Group,
and Bestway Global’s chairman and CEO
Zhu Qiang to remain the largest shareholder
owning at least 50.1% of Bestway Global.
The borrower must remain Bestway
Global group’s major export sales subsidiary
contributing at least 51% of the group’s total
sales. Its annual sales to third parties must
be at least US$500m.
Bestway Global must also continue to be
listed on the Hong Kong Stock Exchange and
trading of its shares must not be suspended
for more than 15 consecutive trading days.
Funds are for refinancing secured
borrowings and for working capital, capital
expenditure and general corporate purposes.
Bestway Global is headquartered in
Shanghai and makes inflatable pools, rafts
and hot tubs, as well as paddle boards,
goggles, snow tubes and air mattresses.
APPLE LAM