Kingboard Laminates Holdings Ltd., a Hong Kong-listed maker of laminate products, hired Citigroup Inc., HSBC Holdings Plc and Standard Chartered Plc for a HK$2.5 billion ($322 million) four-year loan, according to two people familiar with the matter.
Other banks are being invited to join at three levels in syndication and lenders have until April 3 to respond, one of the people said, asking not to be identified because the details are private. Banks pledging HK$300 million or more are being offered a so-called all-in fee of 288 basis points more than the Hong Kong interbank offered rate while those lending HK$200 million to HK$290 million will receive 283 basis points, the person said.
Lenders committing HK$100 million to HK$190 million will receive an all-in fee of 278 basis points. The loan’s margin is 245 basis points over Hibor, the people said.
Kingboard Laminates’ Hong Kong-based investor relations manager, Anna Cheung, declined to comment on the financing when contacted by e-mail today.
Proceeds will be used for capital expenditure and general corporate purposes and the facility agent for the loan is London-based Standard Chartered, one of the people said.
Kingboard Laminates established its first laminate manufacturing plant in 1988 in Shenzhen and began producing paper laminates in 1989, according to its website.