Bloomberg News

Home Inns Senior Lenders Said to Market About $20 Million

October 26, 2011

Oct. 26 (Bloomberg) -- Senior lenders on Home Inns & Hotels Management Inc.’s $240 million loan are seeking to sell between about $15 million and $20 million of the facility to other banks in general syndication, according to people familiar with the matter.

The loan pays an all-in rate of about 460 basis points over the London interbank offered rate, including margin and fees, the people said, declining to be identified because the details are private. The borrower decided to offer an additional 15 basis points to the original 375 basis point margin earlier this month as a result of tightening liquidity, according to one of the people.

The loan size will not be increased because it is designated for acquisition purposes, the person said.

The lending group includes Credit Suisse Group AG and JPMorgan Chase & Co. who committed $40 million each, another person familiar with the matter said on Oct. 6.

Natixis joined the loan as a senior lender with $35 million, the person said at the time. BNP Paribas SA, Chinatrust Commercial Bank, Credit Agricole SA and Shinhan Financial Group Co. also pledged $30 million each, while Industrial & Commercial Bank of China Asia Ltd. joined the senior group with a $5 million commitment, the person said.

The loan is for Home Inns’ acquisition of Motel 168. Home Inns agreed to buy the budget-hotel chain operator in May for $470 million in cash, debt and shares.

--Editor: Pavel Alpeyev

CSGN@VS <Equity> CN JPM US <Equity> CN KN FP <Equity> CN BNP FP <Equity> CN 2891 TT <Equity> CN ACA FP <Equity> CN 055550 KS <Equity> CN 349 HK <Equity> CN

To contact the reporter on this story: Wendy Mock in Hong Kong at wmock3@bloomberg.net

To contact the editor responsible for this story: Shelley Smith at ssmith118@bloomberg.net


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