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Chelsea Logistics and Infrastructure Holdings Corp. secures $220 million loan from Bank of China for acquisition of stake in 2GO Group (Linked to Record ID#49832)

$220M USD

Funder	Bank of China (BOC)
Recipient Organization	Chelsea Logistics and Infrastructure Holdings Corporation
Country	Philippines
Start Date	May 18, 2017
End Date	Dec 05, 2029
Duration	4,584 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`65253`

Grant Description

Chelsea Logistics and Infrastructure Holdings Corp. secures $220 million loan from Bank of China for acquisition of stake in 2GO Group On May 18, 2017, Chelsea Logistics and Infrastructure Holdings Corporation signed a $220 million (P10.9 billion) bridge loan agreement with the Bank of China. The loan carried an interest rate of LIBOR plus a 3.2% margin and it was payable in one year.

The loan was secured by (i.e. collateralized with) Nenaco shares held by KGLI-NM. It was also supposed by a corporate guarantee from Udenna Corp. and the individual surety of spouses Dennis A. Uy and Cherylyn C. Uy.

The proceeds of the loan were to be used by the borrower to facilitate the acquisition of an equity stake in an integrated transport solutions provider, 2GO Group, Inc..

More specifically, the proceeds of the loan were to be used by the borrower to partially finance the acquisition of the remaining 20% stake of Negros Holdings & Management Corporation (NHMC) in KGLI-NM Holdings, Inc. (KGLI-NM) and for the tender offer of Negros Navigation Co., Inc. (NNC) and 2Go shareholders while the remaining balance represented the equity component of the acquisition of a shipping company undergoing due diligence.

As of July 2017, $120 million had been disbursed by the lender to the borrower.

📋 Staff Comments

This bridge loan was part of a larger $3 billion financing package committed during the state visit of President Duterte to China in October 2016 (recorded in Record ID#49832).
For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.

📚 Sources & References

Chelsea Logistics secures $220-million loan from Bank of China
Uy’s Chelsea Logistics gets $220M loan from China
Davao firm gets $220-m China loan
Uy’s Chelsea Logistics Gets $220M Loan from China
Chelsea Logistics inks $220-M loan deal with Bank of China
Final IPO Prospectus
Clarification of News Reports
Competition commission deepens review of Udenna’s entry in 2GO
Chelsea Sells Entire Stake In 2GO
Commission Decision No. 07-M-071 2016: Acquisition by Negros Holdings & Management Corporation of shares in China-ASEAN Marine B.V. Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.