May 7 (Bloomberg) -- Legend Holdings Ltd.’s unit Right Lane Ltd. hired banks to help arrange a $200 million-equivalent three-year syndicated term loan, according to two people familiar with the matter.
The so-called bullet loan will pay a margin of 2.65 percent over benchmark rates and banks can fund the facility in either Hong Kong dollars or U.S. dollars, the people said, asking not to be identified because the details are private. The company will hold bank meetings in Hong Kong and Taipei starting next week and is seeking bank commitments by June 11, the people said.
Officials at Legend Holdings in Beijing couldn’t be reached to comment on the financing outside of normal business hours. Legend Holdings was established in 1984 by 11 researchers at the Computing Institute under the Chinese Academy of Sciences. It now has more than 42,000 employees, including 7,000 outside of China, according to its website.
Australia & New Zealand Banking Group Ltd., Natixis, Royal Bank of Scotland Group Plc and Wing Lung Bank joined the facility as mandated lead arrangers prior to it being marketed to a wider group of lenders, the people said today.
Proceeds of the loan, which is guaranteed by Legend Holdings, will be used for general corporate purposes and to refinance debt, the people said. Legend Holdings has interests in information technology, private equity and real estate, including in Lenovo Group Ltd. and Hony Capital Co., according to its website.
A bullet loan’s entire principal, and sometimes the principal and interest, is due at the end of the loan term.
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