Overseas Union Enterprise, Singapore’s second-largest hotel operator, hired HSBC Holdings Plc and China Construction Bank Corp. to help it get a $500 million loan, according to two people familiar with the matter.

 

The three-year term loan, which has been put for general syndication, is expected to pay about 390 basis points more than the Singapore swap offer rate and banks have been asked to respond by Feb. 12, the people said, asking not to be identified because talks are private.

 

Overseas Union, which owns Meritus Hotels & Resorts, reported a net loss for the quarter to June 30 as costs rose and sales fell. The company will use the money to refinance existing debt and for working capital, the people said.

 

Overseas Union spokeswoman Helen Sun said she was unable to respond immediately to an e-mailed request for more information. A basis point is 0.01 percentage point.