CVC Capital’s City Telecom Loan Said to Attract About Ten Banks
CVC Capital Partners Ltd.’s HK$2.5 billion ($322 million) loan to fund the purchase of assets from City Telecom HK Ltd. (1137) attracted about 10 banks in the first phase of syndication, according to three people familiar with the matter.
The lenders joining the so-called early-bird phase of syndication, which closed this week, include BNP Paribas SA, Credit Agricole SA, Chinatrust Commercial Bank, General Electric Capital Corp., ING Groep NV, Mizuho Corporate Bank Ltd., Natixis, Sumitomo Mitsui Banking Corp., Taipei Fubon Commercial Bank Co. and United Overseas Bank Ltd., the people said, declining to be identified because the details are private. One additional bank may join as a senior lender, they said.
The loan pays a margin of 450 basis points and a fee of about 350 basis points to banks joining as sub-underwriters with commitments of $55 million, the people said. Banks joining in the early-bird phase of syndication get an additional 25 basis points in fees, they said.
Edward Moore, an external spokesman for CVC at public relations firm Brunswick Group LLP in London didn’t immediately respond to an e-mail sent outside office hours seeking comment on the financing.
The loan was underwritten and arranged by JPMorgan Chase & Co. and Standard Chartered Plc, another person familiar with the matter said on April 18. A decision on whether the loan will be marketed more widely in general syndication has not been made, said the people who spoke today.