(Hong Kong, 5 July 2010) Comba Telecom Systems Holdings Limited (“Comba” or “the Group”, Hong Kong stock code: 2342), a leading wireless solutions provider, today signed a US$130 million (approximately HK$1 billion) three-year term loan facility (the “Facility”). The proceeds of the loan are to be used, to finance the Group’s capital expenditure for new R&D center and office construction, research and development initiatives, additional working capital as well as to refinance the 2009 syndicated loan facility to reduce interest expense.
The Facility has been coordinated by The Hongkong and Shanghai Banking Corporation Limited (“HSBC”), with another 12 participating financial institutions including Australia and New Zealand Banking Group Limited, Hang Seng Bank Limited, Svenska Handelsbanken AB (publ) Hong Kong Branch, Bank of Ayudhya Public Company Limited Hong Kong Branch, DBS Bank (Hong Kong) Limited, Bangkok Bank Public Company Limited, Cathay United Bank Company Limited Hong Kong Branch, Bank SinoPac Hong Kong Branch, Chang Hwa Commercial Bank Limited Hong Kong Branch, Industrial Bank of Taiwan Hong Kong Branch, Taiwan Business Bank Hong Kong Branch and Hua Nan Commercial Bank Limited Hong Kong Branch. As a result of oversubscription from the syndicated loan consortium, the loan amount was increased from the originally planed US$100 million to US$130 million, with a tenure of 3 years, at the interest rate of LIBOR plus 1.98% per annum. The overwhelming response reflects the confidence of the banking community in Comba’s business development and its continuous support.
Mr. Tony TL Fok, Chairman and President of Comba, said,” Following our oversubscribed syndicated loan transaction in 2009, I am pleased that the new Facility achieved another great success. The overwhelming support from the renowned local and international banks is a strong vote of confidence in our development strategy, the calibre of our management and brand reputation. The facility will not only provide abundant capital and facilitate business expansion in the long run, but also expedite component research and development, thereby affirming the leading position of our wireless enhancement products and technology.”
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(From left to right) Mr. Zhang, Mr. Albert Chan (Head of Commercial Banking, Hong Kong), Mr. Fok, Mr. Wallace Lam (Director, Debt Capital Markets, Global Capital Financing), Mr. Wilson Tong.