Motherson Sumi Loan Said to Attract DBS Bank in Syndication
Motherson Sumi Systems Ltd. (MSS)’s 370 million euro ($510 million) loan to help fund its acquisition of an 80 percent stake in Germany’s Peguform Group has attracted DBS Bank Ltd. in syndication, according to a person familiar with the matter.
The facility comprises 190 million euro of acquisition facilities, for part funding the purchase, and a 180 million euro loan for refinancing purposes, the person said, asking not to be identified as details are private. ICICI Bank Ltd. (ICICIBC) was awarded the mandate for both facilities last month.
The transaction is structured as three loans -- a 97 million euro five-year loan, a 93 million euro five-year loan with a put option at the end of 18 months, and a 180 million euro loan further split into a 120 million euro term facility due in six years and a 60 million euro revolving credit facility due in five, the person said.
Standard Chartered Plc (STAN) joined as a mandated lead arranger last month, agreeing to underwrite 135 million euros, the person said. Export-Import Bank of India and Axis Bank Ltd. (AXSB) have also joined as mandated lead arrangers with commitments of 50 million euros and 75 million euros respectively, the person said.
Motherson Sumi agreed to buy a stake in Peguform in July from Cross Industries AG, which will continue to hold a 20 percent share. Peguform supplies interior and exterior products for automotive makers.
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