Syngenta / ChemChina

Loan Refinancing Considerations

Syngenta / ChemChina



Publication Date: October 13, 2016


Research Report Overview

Nervousness has resurfaced in Syngenta. This is due to recent Chinese press reports which suggest that state-backed equity investors might not participate in the deal, thus threatening the proposed financing structure. Syngenta has since sent emailed statements to press outlets on 10-Oct-16, confirming that the bridge financing provided by HSBC and China CITIC Bank Int’l is “committed and irrevocable”. Similarly, on 11-Oct-16, dealReporter disclosed that ChemChina has sought to assure its lenders that the equity arrangements and overall financing package are progressing well. Still, the risk arbitrage spread remains wide and investors have doubts over the success of the transaction.


Contents (16 Pages):

1. Funding Sources, Debt Structure and Loan Refinancing Concerns 2. Equity Contribution Still Needed and Potential Partners 3. Committed Financing Requirements Under Swiss Takeover Law 4. Analysis of the CITIC and HSBC Facility Agreements 5. Enforceability – How Binding is “Committed and Irrevocable” 6. Whether CFIUS Can Revisit Due to a Change in Ownership 7. Risk Arbitrage Trading Thoughts and Considerations


How to Access this Research Report

Please contact us to request access to this report or to enquire about our research services.