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
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.
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
China Construction Bank (Asia) 26.5
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
(Reporting by Yan Jiang; editing by Dharsan Singh)