Pacific Century CyberWorks (PCW, PCWKF) Message Board

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Technology Stocks : Pacific Century CyberWorks (PCW, PCWKF)

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To: 10thangel who wrote (515)	3/1/2000 3:07:00 AM
From: Dorine Essey	of 4541

Story on PCCLF bank loans- HONG KONG, March 1 (LPC) - Pacific Century CyberWorks' (PCCW) success in clinching a deal to buy Cable & Wireless HKT with a US$35.9 billion cash and share deal means that syndication of Asia's largest loan facility will go ahead, bankers said on Wednesday. ``The final size of the facility has not been determined yet,' said Grace Tam, managing director of global loan syndications at Barclays Capital. ``But given that the cash amount that PCCW is paying is US$11.3 billion, the facility amount will be US$11.3 billion or slightly more.' The facility is secured against C&W HKT shares, said Tam. There had been speculation in the loan market that the four banks arranging the bridging loan -- BOCI Capital, HSBC Investment Bank Asia, BNP and Barclays Capital -- might not syndicate the loan and choose instead to keep the highly lucrative fee income from the deal to themselves. But one senior banker close to the deal said the sheer scale of the facility meant that a global syndication was inevitable and was likely to begin within the next two weeks. Tam said the arranging banks hoped to be in a position to approach the market next week although the arrangers would be looking to hold a significant portion of the debt for themselves. In terms of the underwriting breakdown, BOCI Capital and HSBC are each underwriting 30 percent of the facility, while Barclays Capital and BNP will each take 20 percent apiece, said Tam. Under terms of the agreement, PCCW will exchange each C&W HKT share for 1.1 PCCW share or a combination of 0.7116 PCCW shares and 92.9 US cents. The maximum amount of cash to be paid out under the cash and share combination option is US$11.3 billion, according to a PCCW announcement to the stock exchange on Wednesday. How much of the loan facility is actually drawn depends on how many C&W HKT shareholders choose to take up the combination cash and share offer, bankers said. Mike Goldstein Mlnrclb@Financialville.com

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