A $588.5 million multi-tranche financing for PaperlinX has been completed via mandated lead arrangers Commonwealth Bank of Australia and National Australia Bank.
The loan comprises a $262.2 million three-year bullet, a $75 million one-year credit and a $250.7 million revolver.
Final allocations saw Commonwealth Bank of Australia commit $189 million while National Australia Bank provided $163.4 million.
Lenders Westpac Banking Corp contributed $80 million while ANZ held $75 million. HSBC took $61.1 million while Deutsche Bank ended up with $20 million.
The funds are to refinance existing debt and for general corporate purposes.
China
Huawei-3Com HoldingsÆ $800 million dual tranche LBO financing led by ABN AMRO, Bank of China, Citi, HSBC and UBS is facing a setback as US regulatory bodies have voiced concerns on national security.
3ComÆs subsidiary, TippingPoint Technologies, is at the heart of the concern as it manufactures anti-hacking software and has contracts with the US department of defence. Bain Capital and Huawei are leading the buyout with 83.5% and 16.5% respectively.
A banker close to the deal said they would make minor changes to the terms of the acquisition but the loan structure would probably remain the same as it has already been funded by the leads, and senior syndication has already closed.
At the senior level, Aozora Bank, China Development Bank, Rabobank, Sumitomo Mitsui Banking Corporation and WestLB joined at the top as equal-status arrangers, while Bank of Nova Scotia and Chinatrust Commercial & Savings Bank came in as lead arrangers.
The five-year non-recourse loan is split into a $750 million credit and a $50 million revolver. The deal offers spreads of 306.25bp and 300bp over Libor respectively.
A separate $400 million financing is being raised in the United States.
The launch of general syndication will be delayed as a result of the US objections, and will ultimately depend on the US regulatory committee.
A Rmb39.5 billion multi-tranche facility for Liaoning Hongyanhe Nuclear Power has been completed via mandated arrangers Bank of China and Industrial & Commercial Bank of China.
The facility comprises a Rmb10 billion 25-year revolver, a Rmb23 billion 25-year term loan and a Rmb6.5 billion 20-year portion.
Final allocations saw the mandated leads each provide Rmb11.85 billion. Lenders China Construction Bank contributed Rmb5.57 billion while China Development Bank and Agricultural Bank of China held Rmb4.94 billion apiece. China Power Invest Financial ended up with Rmb356 million.
China Power Investment Corporation, China Guangdong Nuclear Power Corporation and Dalian Municipal Construction Investment are the sponsors. Proceeds are to support a $6.5 billion project that involves the construction of the Liaoning Hongyanhe nuclear power plant located in Wafangdian.
Sole mandated arranger Bank of China (Beijing) has launched syndication of Si Chuan China Power Investment Fuxi PowerÆs Rmb4.02 billion dual tranche eight-year project financing.
The debt package is split between a Rmb480 million one-year term loan and a Rmb3.55 billion 18-year credit.
Hong Kong
Syndication of Addchance HoldingsÆ HK$500 million three-year debt package is still ongoing to accommodate banks that are still processing credit approvals. Hang Seng Bank is the sole mandated lead arranger and bookrunner.
The loan pays a spread of 108bp over Hibor and has an average life of 2.25 years.
Banks are expected to revert by early March. Proceeds are for capital expenditure purposes.
Pacific Andes Treasury ManagementÆs $160 million four-year dual tranche financing was launched into syndication last week by bookrunners Rabobank and Standard Chartered Bank.
The deal comprises a $100 million term loan and a $60 million revolver. The margin is priced at 125bp over Libor and features an average life of three years. The parent company, Pacific Andes International Holdings is acting as the guarantor.
Syndication has so far seen Citic Ka Wah Bank joining in as an equal-status arranger.
Banks have been invited on three tiers. Coordinating arrangers committing $20 million or more receive 70bp in management fees for an all-in of 148bp over Libor, while co-arrangers contributing between $10 million and $19 million get 55.5bp for an all-in of 143bp. Lead managers lending between $5 million and $9 million gain 46.5bp for an all-in of 140bp.
The syndication is scheduled to close on March 18. Proceeds are to refinance an existing debt issue signed in July 2006 and for working capital purposes.
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