DEALS
Zhong Lun assists HASCO in Obtaining RMB 5 Billion Standby Syndicated Facility
Zhong Lun assists HASCO in Obtaining RMB 5 Billion Standby Syndicated Facility
On April 15, 2019, Huayu Automotive Systems Company Limited (SH600741) (“HASCO") has successfully entered into a standby syndicated facility agreement of RMB 5 billion (“Standby Syndicated Facility") with the syndication (“Syndication") jointly arranged by SAIC Finance Co., Ltd., Industrial and Commercial Bank of China Limited, Shanghai Branch and Bank of Communications Limited, Shanghai Branch and participated by the aforesaid together with China CITIC Bank Corporation Limited, Shanghai Branch. A creative “parent-subsidiary" structure was firstly adopted by HASCO under the Standby Syndicated Facility whereby HASCO as the “parent borrower" under the parent syndication facility agreement could allocate the commitments granted by the Syndication to its certain subsidiaries, and such subsidiaries could participate in the Standby Syndicated Facility as a “subsidiary borrower" by way of entering into a standalone subsidiary syndication facility agreement with the Syndication. Proceeds under the parent syndication facility could be used for multiple purposes, including working capital, fixed assets investment and acquisition.
Zhong Lun Law Firm acted as the counsel for HASCO and provided comprehensive legal services for this standby syndicated facility project. The legal team was led by Shirley Lu (Partner), and the team members include Joy Gao (Non-equity partner) and Mo Chen (Associate).
The Standby Syndicated Facility is designed to effectively prevent potential risk of working capital shortage arising from the fluctuation in the domestic automobile industry, and is also well-tailored to satisfy the future financing demands of HASCO and its subsidiaries, and fund their stable operation and sustainable development.
