Home Inns & Hotels Management Inc. (HMIN), which runs budget hotels in China, has received two commitments in general syndication for its $240 million acquisition loan, according to a person familiar with the matter.

China Development Industrial Bank Inc. and First Gulf Bank PJSC (FGB) will loan funds after the five-year facility was fully allocated among eight banks in October, the person said, asking not to be identified as details are private. China Development Industrial Bank will loan $25 million and First Gulf Bank $20 million, the person said.

Credit Suisse Group AG and JPMorgan Chase & Co., the loan’s two original arrangers, committed $40 million each, Natixis $35 million, BNP Paribas SA, Chinatrust Commercial Bank, Credit Agricole CIB and Shinhan Asia Ltd. $30 million each and Industrial & Commercial Bank of China (601398) Asia Ltd. $5 million.

The eight are now marketing the facility to other lenders with the final hold of each yet to be determined, the person said today. Bank meetings were held on Oct. 31 in Taipei and on Nov. 1 in Hong Kong, the person said. Lenders have until Nov. 18 to respond with commitments and Credit Suisse and JPMorgan expect to sign final documentation by early December, the person said.

The loan is for Home Inns’ acquisition of budget hotel chain operator Motel 168. Home Inns agreed to buy Motel 168 in May for $470 million in cash, debt and shares.

Source:bloomberg.com