Thu, Oct 18, 2007 - Page 12 News List

Carlyle receives additional loan support


The US' Carlyle Group may obtain NT$12.3 billion (US$377 million) in syndicated loans to fund its purchase of a stake in Ta Chong Bank (大眾銀行) after Chinatrust Com-mercial Bank (中國信託商業銀行) agreed to join other lenders.

Chinatrust's decision should help Carlyle get sufficient capital to acquire Ta Chong after Mega International Commercial Bank (兆豐國際商銀), Taiwan Cooperative Bank (台灣合庫銀行) and Taipei Fubon Bank (台北富邦銀行) earlier agreed to bankroll the purchase.

"We have decided to support Carlyle's project," a Chinatrust official said by telephone after a company meeting yesterday.

Carlyle is expected to invest NT$15.5 billion in Ta Chong by the end of this month.

Last month, Ta Chong agreed to sell new convertible financial debentures, common shares and preferred shares totaling NT$21.5 billion to Carlyle Group and private equity fund Corsair Capital LLC through private placement to improve its financial structure.

On Tuesday, the Investment Commission approved Carlyle's US$136.49 million investment in Ta Chong through an investment venture, Cooperative Meadowstream Investment WA.

Ta Chong will hold an extraordinary shareholders' meeting on Oct. 31 to approve the private placement.

It also aims to solicit shareholders' approval to raise an additional NT$6 billion in funds.

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