Loan week, February 5-11

Australia

Hazelwood Power Finance has successfully secured a A$742 million 2.5-year term loan via mandated lead arrangers ANZ, Bank of America, Bank of Tokyo-Mitsubishi UFJ, Bank West, BNP Paribas, BOS International, Credit Agricole, Credit Industriel et Commercial, DBS Bank, Dexia, Fortis, NordLB, Royal Bank of Scotland, Societe Generale, United Overseas Bank, WestLB and Westpac.

The club deal features a margin of 400bp. Proceeds are to refinance and restructure a dual-tranche financing signed in May 2002.

China

Morgan Stanley has been mandated by Haikou Meilan International Airport to arrange its maiden Rmb1 billion three-year term loan.

The borrower, a state-owned enterprise partly owned by HNA Group, is primarily engaged in the ownership and operation of Hainan Meilan International Airport. HNA Group will provide a guarantee to support the facility.

Proceeds are for refinancing purposes and the deal is expected to be launched in the coming weeks.

Hong Kong

China Overseas Land & Investment's HK$8 billion five-year term loan/revolving credit facility was sealed as a club deal on February 5 via a consortium of 10 mandated lead arrangers. The facility was oversubscribed to HK$10 billion following an overwhelming response from the market and was upsized from HK$5 billion.

Mandated lead arrangers Bank of China (Hong Kong) committed HK$1.5 billion, while Bank of Communications and Industrial & Commercial Bank of China (Asia) contributed HK$1 billion each. Agricultural Bank of China, Bank of East Asia, DBS Bank, Hang Seng Bank and Wing Lung Bank came in with HK$700 million each, while HSBC and China Construction Bank (Hong Kong) joined in with HK$500 million apiece.

Proceeds are for general corporate purposes.

A HK$3.6 billion financing for Chinese Estates Holdings was launched into syndication on February 5 via bookrunners and mandated lead arrangers Bank of Communications, Citigroup, DBS Bank, Industrial & Commercial Bank of China (Asia) and Oversea-Chinese Banking Corp.

The facility is priced at 66bp over Hibor. Silvercord and Causeway Place were pledged as securities. Wing Lung Bank joined the financing as a mandated coordinating arranger before the deal was launched into syndication.

Banks can join on one of three tiers. Based on an average life of 2.89 years, arrangers committing HK$300 million or above get an all-in of 82bp, while co-arrangers taking HK$200 million to HK$299 million receive an all-in of 80bp. Senior managers lending HK$100 million to HK$199 million earn an all-in of 78bp.

Proceeds are to refinance an existing debt facility. Banks have until the end of February to revert.

A self-arranged transaction for Sun Hung Kai Properties (SHKP) has been oversubscribed to HK$16 billion via a consortium of 20 coordinating arrangers and underwriters.

HSBC pledged HK$2 billion, while Bank of Communications and Bank of Tokyo-Mitsubishi UFJ contributed HK$1.5 billion each. Bank of China (Hong Kong), Hang Seng Bank, Oversea-Chinese Banking Corp and Sumitomo Mitsui Banking Corp held HK$1 billion apiece and United Overseas Bank committed HK$800 million. China Construction Bank took HK$700 million, while DBS Bank and Mizuho Corporate Bank gave HK$600 million apiece. ANZ, Bank of East Asia, Credit Agricole, Dah Sing Bank, Industrial & Commercial Bank of China, Standard Chartered Bank, Wing Hang Bank and Wing Lung Bank provided HK$500 million each with BNP Paribas coming in with a hold of HK$300 million.

The final loan amount has yet to be confirmed and general syndication is expected to be launched next week after the Chinese New Year.

Proceeds are for refinancing purposes.

Techtronic Industries' $300 million dual-tranche debt package is in the market via Bank of China (Hong Kong), Bank of Tokyo-Mitsubishi UFJ and Mizuho Corporate Bank, with one more bank looking to join the deal.

The facility comprises a four-year tranche with an average life of 3.4 years that accounts for 85% of the total loan amount, and a three-year portion with an average life of 2.4 years. Margins for the two tranches are 170bp and 160bp over Libor respectively.

Signing is expected to take place within this month. Proceeds are for working capital and potential debt repayment purposes.

India

A Rs24 billion 15-year term loan for GVK Power (Goindwal Sahib) has been signed via sole mandated lead arranger and bookrunner IDBI Bank.

The lead contributed Rs5 billion, while Union Bank of India committed Rs2.5 billion. Axis Bank, India Infrastructure Finance, Life Insurance Corp of India and United Bank of India held Rs2 billion each. Bank of Baroda, Punjab & Sind Bank and UCO Bank took Rs1.5 billion apiece, while Bank of India, Indian Bank, Karnataka Bank and Oriental Bank of Commerce came in with Rs1 billion tickets.

Proceeds are to support the development of a 2 x 270MW coal-fired thermal power plant in Punjab, India.

Japan

A five-year dual-currency transaction for NSG UK Enterprises has been completed via mandated lead arrangers Bank of America, BNP Paribas, Citi, Intesa Sanpaolo and Sumitomo Mitsui Banking Corp on a club basis.

The financing is split into $100 million and €200 million term loans. Proceeds are for general corporate purposes.

South Korea

Lotte Card's $60 million loan-style FRN was signed on February 5 via mandated lead arrangers DBS Bank and Natixis on a club basis.

Priced at 145bp over Libor, the bullet loan saw the leads contribute $30 million each. Bank of New York Mellon acted as the facility agent.

Proceeds are to finance working capital requirements.

A $150 million three-year term loan for Shinsegae has been signed as a club deal via mandated lead arrangers Credit Agricole, DBS Bank and Mizuho Corporate Bank.

Proceeds are for general corporate purposes.

Taiwan

Chunghwa Picture Tube's NT$25 billion debt package was launched into the market via mandated lead arrangers Bank of Taiwan, Chang Hwa Commercial Bank, Chinatrust Commercial Bank, Hua Nan Commercial Bank, Land Bank of Taiwan, Taipei Fubon Commercial Bank, Taishin International Bank and Taiwan Cooperative Bank.

The deal is split into a NT$25 billion term loan and a NT$2 billion guaranteed CP facility, although the total outstanding amount cannot exceed NT$25 billion. The term loan is priced between 100bp and 150bp over the 90-day primary CP rate, depending on the borrower's after-tax net profit margin, with an interest rate floor to ensure a minimum after-tax rate of 2.5%. The letter of credit features a 100bp guarantee fee.

Mandated arrangers and bookrunners joining in with more than NT$2 billion and between NT$1.5 billlion and NT$1.9 billion receive 48bp and 36bp respectively. Co-arrangers committing NT$1 billion to NT$1.4 billion get 25bp. Lead managers contributing NT$500 million to NT$900 million and NT$300 million to NT$400 million earn 12bp and 8bp respectively.

Proceeds are to refinance existing debt facilities. Closing is expected in mid-March.

Lextar Electronics Corp's NT$8 billion fundraising was oversubscribed to NT$12.1 billion and signed last week via a consortium of eight coordinating arrangers led by Bank of Taiwan.

Secured by buildings and equipment, the five-year term loan is priced at 50bp over the 90-day primary CP rate with a pre-tax interest rate floor of 1.8%.

Final allocations saw the facility agent Bank of Taiwan take NT$1.2 billion, while security agent First Commercial Bank and documentation agent Land Bank of Taiwan committed NT$1 billion each. Cathay United Bank, Chang Hwa Commercial Bank, Hua Nan Commercial Bank, Mega International Commercial Bank and Taipei Fubon Commercial Bank joined in with NT$800 million apiece. Managers Taishin International Bank contributed NT$300 million, while Export-Import Bank of the Republic of China and Yuanta Commercial Bank ended up with NT$200 million apiece.

Proceeds are for the purchase of machinery and equipment.