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Oct. 6 (Bloomberg) -- Home Inns & Hotels Management Inc., which runs budget hotels in China, allocated a $240 million five-year acquisition loan among eight banks, according to a person familiar with the matter.
Credit Suisse Group AG and JPMorgan Chase & Co., the arrangers of the loan, committed $40 million each, said the person, who declined to be identified because the details are private. Natixis committed $35 million. BNP Paribas SA, Chinatrust Commercial Bank, Credit Agricole CIB and Shinhan Asia Ltd. pledged $30 million each. Industrial & Commercial Bank of China Asia Ltd. loaned $5 million.
The loan pays a margin of 375 basis points over the London interbank offered rate, the person said. The facility pays a so- called all-in rate, which includes fees, of about 450 basis points, a second person familiar with the matter said in September.
The loan is for Home Inns’ acquisition of budget hotel chain operator Motel 168. Home Inns agreed to buy Motel 168 in May for $470 million in cash, debt and shares. The deal “will create the most geographically diverse economy hotel operation in China,” Home Inns said in a May 27 statement.
--Editor: Beth Thomas
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