DFDL has advised a consortium of lenders on local law requirements in Cambodia and Myanmar concerning Grab’s first senior secured term loan facility, based on commitments from international lenders.
Southeast Asian unicorn Grab decided to upsize its term loan facility to US$2 billion due to growing interest from new investors.
The facility is structured as a five-year term loan B with a principal of US$2 billion. The team was led by Ho Chi Minh City-based partner Martin Desautels and Yangon-based partners William Greenlee and Nishant Choudhary, with the support of advisers Tan Chuan How in Phnom Penh and Bhawna Bakshi in Singapore.
“DFDL has acted as lenders’ counsel for Cambodia and Myanmar and advised a consortium of lenders for this largest financing transaction in the region,” Greenlee told Asia Business Law Journal.
“Our assistance comprised of review of the credit and guaranty agreement, regulatory and compliance advisory, and mitigation of local issues through the structuring of security documentation, drafting of security agreements in connection with the loan facility, and issuance of legal opinions for a successful closing.”
Greenlee said that the loan facility amount was expanded from an earlier proposed US$750 million due to the keen interest of investors.
“Grab intends to invest in building a long-lasting business for multiple services so that millions of Southeast Asians can support their families and improve their lives with everyday services, specifically during lockdowns amid covid-19,” said Greenlee.
JP Morgan served as the lead book-runner, while Barclays, Deutsche Bank, HSBC, Mizuho, MUFG and Standard Chartered acted as joint book-runners.
The term loan B facility will allow Grab to consolidate and shore up its liquidity base, increase functionality and available options under its super app ecosystem, and continue to support Southeast Asia’s daily essential consumer needs. Additionally, the loan will help to diversify its sources of financing and establish a long-term, diversified capital structure.