AUDIO products maker Alco Electronics has finalised a $350 million loan from 20 banks to finance its expansion, including construction of a polyfoam factory in Houjie, China.
The facility was arranged by American Express Bank and the Long-Term Credit Bank of Japan.
The three-year loan is guaranteed by Alco Holdings, its holding company.
Alco Electronics had originally planned to raise $250 million, but as the loan was over-subscribed to $550 million, Alco Holdings decided to settle the facility at $350 million, priced at 150 basis points above the Hong Kong interbank offered rate.
The facility is divided into two tranches, a $140 million revolving credit line and a $210 million term loan.
Chairman Kimen Leung said: 'Apart from refinancing the existing syndicated loan raised in June 1994, the loan facility will be used for replacing short-term debt and providing additional working capital.'
