China Construction Bank Extends VisionChina Facility
VisionChina Media announced China Construction Bank granted a revolver extension until January 9, 2015. The total amount of the renewed credit facility is RMB 130.0 million ($21.5 million).
The credit, which was originally scheduled to expire on January 13, 2014, is secured by the A/R of VisionChina Media Group and carries an interest rate in a range between 95% to 160% of the People’s Bank of China benchmark interest rate. The interest rate of each borrowing via the credit is determined at the time of each draw-down.
Proceeds will be used for general corporate purposes and working capital. The credit contains a restrictive financial covenant that requires Visions China Media Group to maintain a leverage ratio of no higher than 65.
Stanley Wang, VisionChina Media’s CFO, commented, “The extended credit facility will continue to provide adequate liquidity to our company. We believe our existing available banking credit facilities are sufficient to support our current business operations and future development.”
VisionChina Media operates an out-of-home advertising network on mass transportation systems, including buses and subways.