Bangkok--Oct 5--Bank of Asia
Bank of Asia Pcl (BoA) today announced that its syndicated credit facility for Magnecomp Precision Technology Pcl (MPT) was fully subscribed.
KC Wong, President & CEO of BoA (a member of United Overseas Bank ltd) said that his Bank was delighted to have been given the opportunity to lead arrange the financing for this landmark transaction. “MPT is a leading suspension assembly producer with a strategic manufacturing base in Thailand and an ideal candidate for the Thai syndicated loan market. We expect to attract more corporate borrowers of similar calibre as MPT,” he said.
The BoA’s led-syndicate that provided the Bht1.8 billion loan facility, he said was for his Bank, an important initial step into the wholesale banking market as a member of Singapore-based UOB Group.
“This first loan syndication demonstrates the Bank’s readiness to support the Thai economy by providing a full range of financial services to both the public and private sectors,” he said.
UOB Asia Ltd was the mandated arranger for the transaction and BoA was the sole underwriter for the Bht1.8 bn five-year facility, that also attracted commitments from BankThai Pcl and TMB Bank Pcl.
KC Wong added that his Bank, soon to be renamed United Overseas Bank (Thai) Pcl, intends to leverage its position as part of the UOB Singapore Group to participate in similar deals in the future. ” We have every intention of becoming a major new force in the Thai market,” he said.
Thai-based Magnecomp Precision (MPT) will be using the proceeds to refinance existing borrowings and for capital expenditures to increase hard-disk suspension manufacturing capacity to meet increasing market demand.
Albert Ong, MPT’s President said that his company was pleased with BoA’s efforts to enhance MPT’s profile in the Thai financial community. “We thank the three banks for their confidence and support of our expansion plans,” he said.
The syndicated credit facility matures in September 2010, and has been priced at a sub-prime lending rate, payable quarterly. This was an inaugural fund-raising exercise in the Thai banking market by Magnecomp Precision Technology Pcl.
MPT, a 81.3 per cent subsidiary of Magnecomp International Ltd (MIL) is a major hard-disk suspension manufacturer. MPT manufactures 3.5 inch, 2.5 inch, 1.8 inch and one inch hard-disk drives and is also the sole supplier to four of the five 1-inch hard disk manufacturers.
In February 2005, MIL merged its Data Storage Division into KR Precision Pcl and changed its name to MPT. The merger has strengthened MPT’s balance sheet and improved operational cash flow. During the first six months of 2005, post merger, MPT shipped a record 138.7 million units, 80.4 per cent more than the same prior-year period.
About Magnecomp Precision Technology Plc
Headquartered in Ayutthaya, Thailand, Magnecomp Precision Technology Pcl manufactures hard disk drive suspension assemblies with a number of subsidiaries specializing in precision stamping, chemical etchings, tooling and die, supporting its core business. MPT has manufacturing facilities in both China and Thailand, with a Research and Development Technology Center located in California, close to its major customers in USA. For more information, please visit the MPT website at www.MagnecompPrecision.com.
About Magnecomp International Limited
Magnecomp manufactures hard disk drive suspension assemblies under MPT for major hard disk drive manufacturers and performs precision stamping, commercial tooling and die, and assembly in Mansfield Manufacturing Company Limited (“Mansfield”) for a variety of customers worldwide. The Group became a publicly traded company on the Singapore Stock Exchange in January 1998. Magnecomp has manufacturing facilities in China and Thailand and a research and development Technology Center facility close to its USA customers. More information about Magnecomp can be found at http://www.magnecomp.com.
About United Overseas Bank Ltd
UOB is a leading Bank in Singapore that provides a wide range of financial services through its global network of 385 branches, offices and subsidiaries in 18 countries and territories in Asia-Pacific, Western Europe and North America. It has banking subsidiaries in Singapore, Malaysia, Indonesia, Thailand and the Philippines.
About Bank of Asia Public Company Limited
Headquartered in Bangkok, Bank of Asia Public Company Limited, a member of UOB Group, provides commercial banking, investment banking and financial services to corporate customers and consumers in Thailand. BoA is undergoing an integration and business transfer process with UOB Radanasin Public Company Limited, and will be renamed United Overseas Bank (Thai) Public Company Limited, before the end of 2005.
For more information please contact:
Corporate Affairs Department Inquiries:
Boonchai Asava-arunotai
Pornsin Chinoresyothin
Tel: 0 2343-4963 to 64 Fax: 0 2285-1372 End.