CK Hutchison Holdings Ltd.'s affiliate CK Infrastructure secured €1.95 billion worth of loans to fuel its planned €4.5 billion acquisition of the German metering and energy management group ista, Reuters reported, citing unnamed banking sources.
The collection of loans is made up of a €1.6 billion term loan payable in three years, that can be held for an additional two years. The media outlet noted that pricing is to commence from a competitive sub-100 basis points over the Euro Interbank Offered Rate and will move up to around 150 basis points in time.
A €250 million capital expenditure facility and a €100 million revolving credit facility, both with a five-year term, also make up the trio of loans.
The Aug. 8 report noted, citing one of the sources, that a consortium of 12 banks were approached and gave commitment to the debt financing. The banks comprise Mizuho, San Paolo IMI, BNP Paribas, China Construction Bank, Commerzbank, ING Bank, National Australia Bank, Royal Bank of Canada, Scotiabank, MUFG, SMBC and UniCredit. Mizuho serves as the facility agent.
CK Infrastructure's joint venture with Cheung Kong Property Holdings Ltd. and Midco 5 proposed the acquisition of Trius Holdings SCA's investment in ista Luxemburg GmbH, July 27.
The acquisition is expected to wrap up in the fourth quarter, the report added.