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UPDATE 3: Banks Release At Least CNY 4B for Dalian Newland Share-Backed Club Loan for Drawdown, Wanda Plans to Set Up Restricted Account with ~CNY 8B Funding for Public Debt Payments

Thu Oct 10, 2024 05:55 AM ET: At least 4 billion Chinese yuan ($565.1 million) has been released for drawdown from the onshore club loan backing private equity firm PAG’s acquisition of a 60% stake in Dalian Wanda’s Newland mall unit, after PAG closed the loan at CNY 16 billion in September, according to two sources familiar with the matter. The club loan, led by Shanghai Pudong Development Bank, is expected to be fully available for drawdown by the end of October, the sources noted. PAG and Wanda were previously targeting a size of CNY 20 billion for the club loan, with part of the loan proceeds to be used to repay some of Zhuhai Wanda Commercial Management Co. Ltd.’s pre-IPO investors, as reported. Meanwhile, Wanda and its new strategic investors are discussing setting up a restricted account to deposit about CNY 8 billion funding that can only be used towards public debt payments, said the sources. As reported, a consortium led by PAG agreed in March to inject around CNY 60 billion in Dalian Newland – the newly formed holding company of Zhuhai Wanda Commercial Management Group Co. Ltd. – in return for a 60% stake in the company. Wanda,[...]