Chinese banks to finance $800m OmniVision acquisition

Bank of China and China Merchants Bank are arranging a loan facility of about $800 million to finance a Chinese consortium's $1.9 billion acquisition of US-listed OmniVision Technologies, according to two sources familiar with the matter.

The Chinese consortium comprises Beijing-based Hua Capital Management, Citic Capital and Goldstone Investment, a subsidiary of Citic Securities. Bank of China is the mandated lead arranger and sole bookrunner and China Merchants Bank is the lead arranger.

The $800 million financing includes a six-year term loan and a one-year bridge loan. According to the sources, the banks are expected to hold the majority of the acquisition debt on their...