loan-digest-june-2--9

Loan digest June 2 - 9

A round up of the latest syndicated loan market news.
Australia

Mirvac Group Funding and Mirvac Group FinanceÆs A$2 billion dual tranche revolving credit was signed on June 2.

Mandated arrangers ANZ Investment Bank and Westpac held A$250 million each and Citigroup provided A$150 million. Co-arrangers Commonwealth Bank of Australia and ING Bank committed A$300 million apiece, RBS Australia contributed A$175 million, OCBC lent A$125 million, and Sumitomo Mitsui Banking Corp took A$100 million. Lead managers Bank of Tokyo-Mitsubishi UFJ and St George Bank provided A$100 million apiece while Calyon and BNP Paribas absorbed A$75 million each.

Proceeds are to refinance existing debt and for general corporate purposes. Mirvac is providing a guarantee. ANZ Investment Bank, Citigroup and Westpac also provided a A$1.2 billion one year revolver on a club basis.

Mandated lead arrangers Royal Bank of Scotland and UBS are syndicating a A$350 million management buyout facility for Super A-Mart. The loan comprises A$260 million senior debt and A$90 million subordinated debt portions.

Proceeds are to support the A$500 million buyout of the furniture retail chain from founder and owner John Van Lieshout. The investor group backing the management team comprises Ironbridge Capital, SingaporeÆs GIC Special Investments, Macquarie Bank and Partners Group from Switzerland.

China

The $50 million and Rmb1 billion fundraising for AU Optronics (Suzhou) and AU Optronics (Xiamen) has so far received 11 commitments totalling $420 million. A number of banks are still processing credit approvals. ABN AMRO, Bank of Tokyo-Mitsubishi UFJ, HSBC and Standard Chartered Bank are in the arranging group.

Bayer Polyurethan (Shanghai) CorpÆs Rmb6.1 billion 10 year loan is progressing in syndication with banks expected to revert at the end of June. China Construction Bank, HSBC, Industrial & Commercial Bank of China and Standard Chartered are leading the deal. Proceeds will be used for working capital purposes.

Kumho Tire (Tianjin)Æs Rmb340 million seven year credit is signing today (Friday). Mandated arranger Korea Development Bank (Shanghai) is offering Rmb80 million. Co-arrangers are Woori Bank (Shanghai) committing Rmb140 million, Bank of China (Shanghai) providing Rmb95 million and Qingdao International Bank contributing Rmb25 million.

The Rmb500 million dual tranche facility for Xiamen SM City and SM Shopping Centre (Chengdu) has closed with a total of five banks participating. They are Standard Chartered, United Overseas Bank (Xiamen), OCBC Bank (Xiamen), Hang Seng Bank (Fuzhou) and Agricultural Bank of China (Lianqian). Sole mandated arranger Standard Chartered took Rmb100 million while the other four banks pledged Rmb80 million each. Signing takes place today (June 9).

Yantai North Andre Juice has completed a $60 million facility with a syndicate of 10 banks. Mandated coordinating arranger HSBC held $10 million.

Joining as arrangers are China CITIC Bank lending $10 million and Rabobank Nederland (Shanghai) providing $9 million. Senior managers include Hang Seng Bank (Fuzhou) committing $6 million, Citic Ka Wah Bank (Shanghai), Korea Development Bank (Shanghai) and Qingdao International Bank pledging $5 million apiece and China Merchants Bank (Shenzhen Luohu sub-branch) with a ticket of $4 million.

Managers with commitments of $3 million apiece include Chinese Mercantile Bank and Nanyang Commercial Bank (Beijing).

Hong Kong

The HK$120 million dual tranche fundraising for Eva Precision Industrial Holdings and Eva Precision Industrial (Suzhou) was inked on Monday. The syndicate comprises seven banks including coordinating arrangers DBS Bank and Hang Seng Bank.

Gold Peak IndustriesÆ fundraising was signed last Thursday. The facility has been upsized to HK$380 million from HK$350 million due to a strong response in general syndication. Mandated lead arrangers are China Construction Bank and HSBC committing HK$60 million and HK$45 million respectively.

Maybank took HK$50 million and received the title of arranger. Five other banks joined as senior managers. They are Bank of Taiwan lending HK$35 million and Banca Nazionale del Lavoro, Cathay United Bank, Liu Chong Hing Bank and Taiwan Business Bank taking HK$30 million apiece.

Managers are Hua Nan Commercial Bank and Industrial and Commercial International Capital with tickets of HK$25 million each. United Overseas Bank committed HK$20 million. The deal features a spread of 66bp over Hibor. Proceeds will be used for debt repayment and general corporate purposes.

Hongkong LandÆs HK$7.5 billion dual tranche facility was signed on June 5. A total of 20 banks are participating in the deal.

Coordinating arrangers Bank of Tokyo-Mitsubishi UFJ, BNP Paribas (Hong Kong), HSBC and Standard Chartered Bank (Hong Kong) held HK$641million apiece, Bank of China (Hong Kong) lent HK$555 million, ICBC Asia took HK$470 million and Sumitomo Mitsui Banking Corp provided HK$448 million. Rabobank (Hong Kong) also joined at the top level with a commitment of HK$406 million as did Calyon, DBS Bank (Hong Kong), Mizuho Corporate Bank and Royal Bank of Scotland with tickets of HK$384.25 million each.

Arrangers include Wing Lung Bank lending HK$300 million, Fortis Bank (Hong Kong) committing HK$250 million, China Construction Bank (Hong Kong) and Tai Fung Bank contributing HK$200 million apiece and Bank of Communications (Hong Kong), Bank of East Asia and Scotiabank (Hong Kong) providing HK$150 million each. Bank of China (Macau) joined with a hold of HK$120 million as a senior manager.

Peace Mark (Holdings)Æs HK$600 million three year term loan facility was signed on June 5. A total of 13 banks are providing the funds.

Mandated arranger Sumitomo Mitsui Banking Corporation lent HK$74 million while coordinating arranger Taipei Fubon Commercial Bank took HK$73 million. Co-arrangers United Overseas Bank contributed HK$73 million and Bank of Taiwan (Hong Kong) provided HK$68 million.

Senior managers include Chang Hwa Commercial Bank (Hong Kong), Maybank (Hong Kong) and UniCredito Italiano committing HK$39 million each, Banca di Roma (Hong Kong), Bank of China (Macau), Cathay United Bank (Hong Kong), Mizuho Corporate Bank and State Bank of India (Hong Kong) lending HK$34 million each and BBVA taking HK$25 million.

Shanghai Industrial Investment Holdings has raised HK$3.5 billion via eight coordinating arrangers. They are Bank of China (Hong Kong), Bank of Communications, China Construction Bank, Citic Ka Wah Bank, Hang Seng Bank, HSBC, ICBC Asia and Mizuho Corporate Bank with tickets of HK$350 million each. HSBC is the sole bookrunner on this deal.

Arrangers are Tai Fung Bank lending HK$150 million with two others - Bank of Tokyo-Mitsubishi UFJ and Shanghai Pudong Development Bank - taking HK$125 million apiece. Joining as senior managers are Bank of China (Macua) holding HK$100 million and Liu Chong Hing Bank committing HK$75 million. Signing took place on May 30.

Hong Kong listed brokerage, Tai Fook Securities GroupÆs HK$500 million five year revolving credit has been extended for another week. The deal carries a spread of 90bp over Hibor. The financing will be used to fund the borrowerÆs expansion plans.

India

Air India is expected to award the mandate for a $2 billion aircraft financing shortly. The facility will comprise a pre-delivery tranche, a commercial loan and a US Exim portion. ABN AMRO, ICICI Bank and State Bank of India have formed a bidding group and Citigroup is rumoured to have put together another group.

Indonesia

Bank Ekspor Indonesia (Persero)Æs $120 million dual tranche term financing has been launched into sub-underwriting and general syndication. Mandated lead arrangers are DBS Bank, HSH Nordbank AG (Singapore), OCBC Bank, SMBC, RZB (Singapore) and Natexis Banques Populaires (Singapore). The first four banks were originally mandated and are running the books collectively. OCBC Bank is the facility agent and HSH Nordbank AG (Singapore) is the publicity agent.

The deal is split between a $70 million 370 day tranche æAÆ that is priced at 43bp over Libor and a $50 million two year tranche æBÆ that offers a margin of 75bp over Libor. Sub-underwriters lending $15 million or above will earn mandated lead arranger status. They will be paid a sub-underwriting fee of 2bp and 4bp, and receive an upfront fee of 26bp and 50bp, leading to a top level all-in of 71bp and 102bp respectively.

In general syndication, banks have been invited to participate on three tiers in both tranche æAÆ and æBÆ. For tranche æAÆ, lead arrangers providing $10 million to below $15 million are paid 27bp for an all-in of 70bp; arrangers contributing $5 million to below $10 million get 25bp for an all-in of 68bp while lead mangers taking $3 million to below $5 million earn 24bp for an all-in yield of 67bp. For tranche æBÆ, lead arrangers receive an upfront fee of 50bp, with an all-in yield of 100bp; arrangers get 46bp for an all-in of 98bp while lead managers gain 42bp for an all-in of 96bp.

The facility will be used for general funding requirements and to finance export related facilities. A roadshow was held in Singapore on Tuesday. The deadline for bank responses for sub-underwriting and general syndication are on June 12 and June 16 respectively.

The $75 million five year credit for Federal International Finance has secured subscriptions in excess of $50 million, including mandated arranger ABN AMROÆs hold. A $30 million to $80 million green shoe option will likely be exercised.

Bank of Tokyo-Mitsubishi UFJ is the latest investor to join with a $10 million ticket. Erste Bank, HVB and State Bank of India joined earlier. A number of banks are processing credit approvals and financial close is expected next week.

Allocations for Indover BankÆs $75 million 364 day fundraising have been finalised.

Mandated arrangers BayernLB and Natexis Banques Populaires (Singapore) are lending $10 million each and Oversea Chinese Banking Corp is providing $5 million.
Co-arrangers include PT Bank Negara Indonesia and RZB Austria committing $10 million apiece and Commerzbank contributing $8 million.

Lead Managers include NordLB and Bank of Montreal absorbing $6 million each, Bank of Montreal and Sumitomo Trust & Bank providing $5 million each and Danske Bank lending $4 million while senior manager Bank Mandiri is taking $2 million.

Japan

Mandated arranger Citigroup has arranged a $500 million financing for trading firm Itochu Corp . A total of 13 banks joined including BNP Paribas and Mizuho Corporate Bank. Proceeds are for general corporate requirements.

Singapore

United Test & assembly Center (UTAC)Æs $175 million 15-month bridge facility has been completed with five banks participating.

Mandated arrangers are DBS committing $75 million and Bank of America, OCBC, Rabobank and United Overseas Bank taking $25 million apiece. The deal offers a margin of 75bp for the first six months, that steps up to 100bp and 125bp for the final six months. Signing will be held next week.

South Korea

Hanjin ShippingÆs $205 million shipping loan has so far secured one commitment. Mandated lead arrangers BNP Paribas, Citigroup Global Markets Asia, ING Bank, Export-Import Bank of Korea, SG Asia and SMBC are waiting for a few more banks to revert before closing the books. The deal comprises an $82.048 million pre-delivery portion which features a top level all-in of 30bp over Libor; and a $205.12 million post-delivery portion that carries a top level all-in of 60.4bp over Libor. Signing is expected to be held on June 23.

Joint lead arrangers Kookmin Bank and Standard Chartered are waiting for a few more banks to revert before closing the books on Hyundai Engineering & ConstructionÆs $100 million three year loan-style FRN early next week. The facility has so far secured three commitments in general syndication. The deal features a spread of 60bp over Libor and proceeds will be used for working capital purposes.

A consortium of 10 banks closed syndication of Shinhan BankÆs Ñ30 billion dual tranche financing on Monday. Around 12 banks joined with subscriptions totalling Ñ13.9 billion. The financing received a blowout response according to bankers close to the deal.

Mandated lead arrangers are ABN AMRO, Banc of America Securities Asia, BNP Paribas, Calyon, Citigroup Global Markets Asia, HSH Nordbank AG (Singapore), ING Bank, Lloyds TSB Bank, Mizuho Corporate Bank and SMBC while BNP Paribas is the facility and security agent. Proceeds will be used to refinance a Ñ33 billion one year term financing signed on May 2005.

Allocations will be finalised shortly. Signing is targeted for June 12.

Taiwan

Chailease FinanceÆs NT$4 billion 12 year term loan was signed on Tuesday, June 6. A total of seven banks are participating in the transaction.

Mandated arrangers Hua Nan Commercial Bank, Taipei Fubon Commercial Bank and Taiwan Cooperative Bank held NT$950 million apiece. Central Trust of China joined as a co-arranger with a commitment of NT$450 million.

Joining as managers are Export-Import Bank of the Republic of China and Hsin Chu Commercial Bank with tickets of NT$300 million each. Shanghai Commercial & Savings Bank joined as a lender with a contribution of NT$100 million.

Elitegroup Computer System is set to mandate a group of four to arrange a $100 million three year financing. The banks are Chang Hwa Commercial Bank, First Commercial Bank, International Commercial Bank of China and Taiwan Cooperative Bank.

The borrower produces computer motherboards and is expected to award the mandate shortly. The deal is likely to be provided on a club basis.

The NT$10.4 billion 12 year aircraft financing for Eva Airways is expected to launch into syndication next week. Cathay United Bank, Chang Hwa Commercial Bank, Chinatrust Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank, International Commercial Bank of China and Taipei Fubon Commercial Bank are leading the facility.

The loan is split equally into two term facilities and offers a margin of 45bp over the secondary CP rate.

Global Testing CorpÆs NT$2.5 billion multi-tranche credit was signed on June 1 with a syndicate of 11 banks. Mandated lead arrangers Hua Nan Commercial Bank held NT$500 million and Bank of Taiwan and Ta Chong Commercial Bank lent NT$450 million each.

Lenders include Hsinchu International Bank and Cathay United Bank providing NT$300 million apiece, Central Trust of China, Land Bank of Taiwan, Shanghai Commercial & Savings Bank and Shin Kong Bank committing NT$200 million each and Industrial Bank of Taiwan and International Bank of Taipei with tickets of NT$100 million apiece.

The NT$7.2 billion multi-tranche financing for Hsintao Power Corp will sign on June 20. Mandated arrangers Chang Hwa Commercial Bank held NT$3.3 billion, Cathay United Bank lent NT$1.6 billion and Shanghai Commercial & Savings Bank and Taiwan Business Bank took NT$1.1 billion apiece. Cathay Life Insurance joined as a lender with a contribution of NT$138 million.

Taipei Fullerton HotelÆs NT$2.39 billion dual tranche fundraising has so far secured nine commitments and is already oversubscribed. Taiwan Cooperative Bank is leading the deal.

Banks that have joined include Agricultural Bank of China, Cathay United Bank, Fuhwa Bank, Hsinchu International Bank, KingÆs Town Bank, Shanghai Commercial & Savings Bank, Shin Kong Commercial Bank, Taichung Commercial Bank and Taipei Fubon Commercial Bank. Up to 10 more investors are processing credit approvals and financial close is slated for June 15. The loan amount is unlikely to be increased.

The NT$10 billion one year loan for Tien Yuan Hot Springs Hotel has signed. Mandated lead arranger Taiwan Cooperative Bank held NT$400 million while lenders Agricultural Bank of Taiwan lent NT$300 million, Shin Kong Commercial Bank provided NT$100 million, Asia Trust & Investment Corp took NT$70 million, Shanghai Commercial & Savings Bank and Sunny Bank committed NT$50 million each and Central Trust of China pledged NT$30 million.

Taiwanese chemical manufacturer, UPC has awarded the mandate for a $100 million renminbi equivalent term loan to BNP Paribas and Mizuho Corporate Bank. The facility is split between a $60 million term portion and a $40 million tranche. Proceeds will be used for working capital. A wider syndication will follow shortly.