(Adds Tingyi net income in fifth paragraph.)
Nov. 15 (Bloomberg) -- Tingyi (Cayman Islands) Holding Corp., the instant noodle maker which agreed to be PepsiCo Inc.’s bottler in China, hired Deutsche Bank AG to advise on an about $150 million loan, according to two people familiar with the matter.
Cathay United Bank Co. is helping to arrange the three-year facility, which is being marketed primarily to lenders in Taiwan, said the people who declined to be identified as details are private. The loan has a margin of about 95 basis points over the London interbank offered rate, and proceeds will be used for capital expenditure and general corporate purposes, the people said.
Deutsche Bank has advised on, instead of arranged, loans in Taiwan previously, that model being part of the bank’s strategy in the region, one of the people said. The German lender advised on a $262 million facility for Export-Import Bank of Korea last year which was arranged by Taiwan Cooperative Bank.
Hong Kong-listed Tingyi sells instant noodles, ready-to- drink tea and baked goods under the brand name Master Kong. It’s China’s largest maker of packaged food.
Net income fell to $131 million in the three months through September from $200.5 million a year earlier, Tingyi said in a Nov. 14 filing. Colder weather in southern China hurt demand for its drinks while prices for raw materials rose, Tingyi said.
Tingyi is expanding into new markets to boost sales and agreed to swap a stake in its beverage business for PepsiCo’s bottling operations in China. In exchange, PepsiCo will receive 5 percent of Tingyi-Asahi Beverages Holding Co., with an option to increase the stake to 20 percent by October 2015. Tingyi will also make, sell and distribute PepsiCo’s carbonated soft-drink and Gatorade brands, and co-brand its juice products under the Tropicana label.
--Editor: Katrina Nicholas
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