Loan week, April 18-24

A roundup of the latest syndicated loan market news.

AGL EnergyÆs A$270 million two-year financing has been launched into general syndication via mandated lead arrangers Royal Bank of Scotland and Westpac Banking Corporation.

The deadline for banks to revert is mid-May. Proceeds are to refinance a $270 million 364-day facility signed in October 2007.

An A$800 million multi-tranche fundraising for Goodman Group is still under syndication via bookrunners ANZ and National Australia Bank.

The four-year multi-currency loan comprises two A$100 million portions and a A$600 million tranche.

Sole lead Bank of China has been mandated to arrange a $385 million-equivalent aircraft financing for Qantas Airways. The deal is to formally launch into syndication in May.

Leads Commonwealth Bank of Scotland, National Australia Bank, Royal Bank of Scotland and Westpac Banking Corporation launched a A$1 billion multi-tranche debt package for Tatts Group into syndication on April 23.

The tranche breakdown has yet to be disclosed but it will feature tenors of one, three and five years respectively.

Hong Kong

Pacific Andes Treasury ManagementÆs $160 million four-year dual tranche fundraising is at the final stages of syndication and has been extended to accommodate the lendersÆ internal processing time. The mandated leads and bookrunners are 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.

Citic Ka Wah Bank has already joined in as an equal-status arranger and several other commitments have been received but not disclosed.

The syndication is expected to close by the end of the month. Proceeds are to refinance an existing debt signed in July 2006 and for working capital purposes.

A HK$4.65 billion dual tranche four-year financing for Teamer International was signed on April 18 as a club deal via a consortium of 10 mandated arrangers.

The credit is split between a HK$2.85 billion term loan and a HK$1.8 billion revolver. The deal pays a spread of 55bp over Hibor. Acting as the guarantors are K. Wah International Holdings, Nan Fung Development, Nan Fung Textiles and Sino Land.

Final allocations saw Bank of China (Hong Kong branch) and Bank of Communications committing HK$844 million apiece, while DBS Bank, HSBC and Sumitomo-Mitsui Banking Corporation held HK$500 million each. Standard Chartered Bank provided HK$465 million while Industrial & Commercial Bank of China (Asia) and Wing Hang Bank gave HK$300 million apiece. Rounding off the syndicate were Bangkok Bank and Shanghai Commercial Bank with holds of HK$200 million each.

The funds are to partly refinance an existing facility used for the acquisition of land and to support construction costs.


Syndication of Sigma ElectricÆs $115 million five-year financing is expected to close soon, with four banks joining the syndicate so far. HSBC and Shinhan Bank have joined as equal-status arrangers. Royal Bank of Canada has joined as a lead arranger while Chinatrust Commercial Bank has committed as an arranger. JPMorgan is leading the transaction.

The loan comprises a $75 million five-year credit and a $40 million five-year bullet with both tranches featuring a spread of 275bp over Libor.

Banks have been invited to participate on three levels. Those lending $20 million and above receive the title of mandated lead arranger and upfront fees of 125bp, while banks committing between $15 million and $19 million get the lead arranger title and 112.5bp in fees. The title of arranger and fees of 100bp will be given to those providing between $10 million and $14 million.

The funds are to refinance a Goldman Sachs Principal Investments-led equity investment into the borrower.

ABN AMRO, Calyon, HSBC, Mizuho Corporate Bank, Rabobank, Scotiabanc and Standard Chartered have launched the $500 million yen-equivalent five-year portion of an $850 million debt package for Tata Chemical into general syndication. The $350 million five-year credit has been completed on a club basis via the seven mandated lead arrangers.

Banks have been invited on three tiers. Lead arrangers contributing $20 million or above receive 90bp in management fees for an all-in of 152.14bp while arrangers holding between $10 million and $19 million get 84bp for an all-in of 151bp. Managers lending between $5 million and $9 million gain 76bp for an all-in of 149.48bp.

The margin is priced at 135bp over yen Libor. Roadshows were held in Singapore on April 21 and Taipei on April 22. Banks have until May 23 to respond. Aozora Bank joined the syndicate at the top level prior to the launch of general syndication.

Proceeds are to finance the acquisition of General Chemical Industrial Products.

Vedanta Resources has mandated ABN AMRO, Barclays Capital, Bank of Tokyo-Mitsubishi UFJ, Calyon, Citi, Standard Chartered and Sumitomo Mitsui Banking Corporation to arrange its $1 billion-four year facility.

The loan is expected to be launched into syndication in early May.


PT PLN Perusahaan Listrik Negara (Persero) Æs $592.28 million 13-year project financing has been allocated. Bank of China, BNP Paribas, China Construction Bank, China Development Bank, China CITIC Bank, ICBC Asia and Societe Generale led the facility.

Final allocations saw all the leads but China Citic Bank provide $50.18 million each. China Citic Bank took $34.2 million.

Arrangers ANZ, BayernLB, Calyon, Credit Suisse, Fortis, ING Bank, Natixis, Royal Bank of Scotland and WestLB committed $25 million apiece while co-arrangers Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp each ended up with $16 million.

The signing ceremony is expected to take place on April 28.

A S$1.94 billion 46-month dual tranche debt package for MGP Berth is being well received in syndication. The mandated leads are DBS Bank, Hypo Real Estate Capital, Oversea-Chinese Banking Corporation and United Overseas Bank.

The facility features an attractive margin of 210bp over SOR and consists of a S$1.55 billion senior portion and a S$388 million junior tranche which will not be syndicated and held only by the bookrunners.

So far, two large commitments have been received along with a few smaller tickets. Banks are yet to be disclosed.

Syndication is slated to close by the end of April. Proceeds are to partially refinance an existing S$1.42 billion bridge loan and to fund construction costs.

Noble GroupÆs $700 million two-year guarantee facility was completed on April 22 via original mandated lead arrangers ING Bank, Royal Bank of Scotland, Societe Generale and Standard Chartered Bank. The deal was upsized from $500 million due to a good market response.

The credit can be denominated in US dollars, euros and Australian Dollars and features a one-year extension option.

Final allocations saw Standard Chartered Bank contributing $79 million while ING Bank, Royal Bank of Scotland and Societe Generale took $74 million apiece. Coming in as equal-status arrangers were ICICI Bank and KfW IPEX Bank lending $60 million and $49 million respectively. Bank of Tokyo-Mitsubishi UFJ, Commerzbank, DBS Bank and Lloyds TSB Bank provided $40 million each.

Lead arrangers Citic Ka Wah Bank and Deutsche Bank took $35 million and $30 million correspondingly. Commonwealth Bank of Australia and Banco Santander took $25 million and $20 million respectively as arrangers. Completing the syndicate were co-arrangers Arab Bank and KBC Bank, giving $10 million apiece.

Proceeds are for trade finance purposes.

South Korea

Hyundai Capital ServicesÆ $155 million three-year offshore floating rate note was sealed on Tuesday (April 22) via mandated lead arrangers ANZ, DBS Bank and WestLB.

Final allocations saw WestLB contributing $50 million while ANZ and DBS Bank took $30 million apiece. Coming in as participants were Landesbank Baden-Wuerttemberg, Mega International Commercial Bank and Maybank providing $25 million, $15 million and $5 million respectively.

Proceeds are to refinance existing debt and for working capital purposes.


Cosmo Electronics CorporationÆs NT$840 million-equivalent dual currency facility has closed syndication via sole mandated lead Taishin International Bank.

The loan is split into a NT$420 million portion and a $12.6 million tranche.

The full syndicate has not yet been disclosed.

The signing date is scheduled for today (April 25). The funds are for working capital purposes.

A NT$11.2 billion 12-year financing for Eva Airways Corporation has been inked via a syndicate of 11 banks.

Final allocation saw the mandated leads First Commercial Bank and Land Bank of Taiwan each commit NT$1.5 billion, while Cathay United Bank, Chang Hwa Commercial Bank, E Sun Commercial Bank, Taipei Fubon Commercial Bank, Taiwan Cooperative Bank and Yuanta Commercial Bank took NT$1 billion apiece.

Lenders Agricultural Bank of Taiwan held NT$1 billion and Hua Nan Commercial bank contributed NT$800 million. Export-Import Bank of Taiwan ended up with NT$400 million.

The funds are to support the acquisition of two Boeing 777 aircraft.

Quanta ComputerÆs $360 million five-year fundraising has closed oversubscribed amid good response. The deal was upsized from $300 million.

Allocations saw leads Bank of Tokyo-Mitsubishi UFJ and Hua Nan Commercial Bank holding $30 million apiece while Cathay United Bank, E Sun Commercial Bank, First Commercial Bank, ING Bank, Industrial Bank of Taiwan, Land Bank of Taiwan, Mega International Commercial Bank, Mizuho Corporate Bank, Shanghai Commercial & Savings Bank, Sumitomo Mitsui Banking Corporation, Taiwan Cooperative Bank and Yuanta Commercial Bank each took $24.38 million. Taiwan Business Bank provided $7.5 million as a lender.

The original mandated leads were Bank of Tokyo-Mitsubishi UFJ, Hua Nan Commercial Bank, ING Bank, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp.

The signing ceremony is slated to take place on April 30.

Taiwan Calcom International Computer GraphicÆs NT$500 million three-year revolving facility will be signed next Wednesday.

Mandated lead arrangers First Commercial Bank and Taiwan Business Bank took NT$85 million each, while Taiwan Cooperative Bank and Hua Nan Commercial Bank ended up with NT$75 million apiece. Managers Cathay United Bank, Chang Hwa Commercial Bank, KingÆs Town Bank, Land Bank of Taiwan and Shin Kong Bank each contributed NT$36 million.

The bullet loan, which is guaranteed by the chairman and president of the company, pays a spread of 165bp over the secondary CP rate. Lenders have security against land, buildings and accounts receivable. The commitment fee is 15bp.

Upfront fees are 20bp, 15bp and 10bp for banks that contribute over NT$80 million, NT$60 million to NT$79 million, and NT$40 million to NT$59 million respectively.

Proceeds are to refinance an existing debt facility and for working capital purposes.

Syndication of Unitech Printed Circuit Board CorpÆs NT$2 billion five-year dual tranche credit has closed oversubscribed via bookrunners Cathay United Bank, Industrial Bank of Taiwan, Taipei Fubon Commercial Bank and Taishin International Bank. The commitments from banks were scaled back at the borrowerÆs request.

The debt package comprises a NT$1 billion term loan and a NT$1 billion revolver with both portions paying a spread of 62.5bp over the secondary CP rate.

Syndication saw six banks joining in as participants. These are Agricultural Bank of Taiwan, Chang Hwa Commercial Bank, Land Bank of Taiwan, Shin Kong Commercial Bank, Taiwan Business Bank and Taiwan Cooperative Bank. Allocations are yet to be disclosed.

The signing date is slated for the end of April. Proceeds are for working capital requirements.
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