WestLB AG London has been mandated to arrange a debut US$20mn 370-day syndicated term loan facility for Garanti Finansal Kiralama (Garanti Leasing) which has been launched into general syndication. The transaction has the benefit of a letter of comfort from Turkiye Garanti Bankasi.
There is an extension option of 370 days from the maturity date at the lenders” discretion. The margin is Libor plus 100bp per year.
Co-arrangers have been invited to take commitments of US$3.5mn with fees of 130bp; lead managers US$2mn with fees of 120bp; and managers US$1mn with fees of 115bp.
The loan is for general corporate purposes, including, but not limited to the financing of imports.
Garanti Leasing, a 94% owned subsidiary of Turkiye Garanti Bankasi, was established in 1990 and is rated B by Fitch and Standard & Poors. The company focuses on small-ticket leases with a client base in excess of 3,000 customers with over 75% of its business being originated through Turkiye Garanti Bankasi’s branch network. The company also operates vendor-financing agreements in Turkey with companies such as Volkswagen, Audi, Dell and John Deere.