Rapidly expanding Shangri-La Asia, which operates 49 resorts and hotels mainly across the region, is seeking a HK$3 billion syndicated loan for general working capital, according to market sources.
The company will pay an interest margin of 29 basis points over the Hong Kong interbank offered rate (Hibor) and 34.5 basis points in fees to the arranging banks. Shangri-La Asia declined to comment.
HSBC, DBS, Standard Chartered and Bank of China (Hong Kong) have been hired to organise the five-year loan which started syndication yesterday. The arrangers are seeking a minimum group of 10 banks and could bring in more, market sources said.
The loan will run as a three-year revolving credit facility, where the borrower can draw down funds as needed, after which it will finish as a term loan.
The firm last borrowed in 2002, when it took out a HK$3 billion, five-year loan, paying an interest margin of 41 basis points above Hibor.
Shangri-La, controlled by the Kerry Group and a sister company of the South China Morning Post, aims to have up to 39,000 hotel rooms by 2011 from its current total of 24,000 rooms.