LPC-East Asia Heller inks HK$300 mln loan deal

HONG KONG, July 14 (Reuters) - Hong Kong-based East Asia Heller Ltd's HK$300 million-equivalent term loan and revolving credit facility has been signed, arrangers ABN AMRO and Rabobank said late on Thursday.

Six banks, including lead arrangers, committed HK$50 million-equivalent each to the three-year facility. The facility amount for the non-bank financial institution was maintained despite oversubscription.

Each bank earned an upfront fee of 43 basis points flat and an all-in yield of 78 basis points.

The deal pays a margin of 62 basis points over Hongkong Interbank Offered Rate (HIBOR) or London Interbank Offered Rate (LIBOR), and is split equally into three tranches.

The first tranche is a HK$103.2 million revolving credit facility; the second is a HK$103.2 million term loan and the third tranche is a US$12 million term loan.

Although unsecured, the facility is covered by financial covenants and a letter of comfort from the Bank of East Asia and Heller International Inc., a wholly-owned subsidiary of New York-listed Heller Financial Inc (NYSE:HF).