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Loan week, April 3-8

A roundup of the latest syndicated loan market news.

Australia

A A$1.2 billion debt package for OZ Minerals has been extended via mandated lead arrangers ANZ, BayernLB, BNP Paribas, BOS International, Commonwealth Bank of Australia, National Australia Bank and Royal Bank of Scotland.

The loan was due to mature on March 31, but has been pushed back to April 30, 2009.

General syndication of Telstra Corp's A$300 million dual-currency facility is ongoing via bookrunners Bank of China (Hong Kong) and Bank of Tokyo-Mitsubishi UFJ.

The deal is split into three-year and five-year tranches, and can be drawn down in US dollars or Australian dollars.

Proceeds are for working capital purposes. The financing is expected to close in April.

China

Dow Corning (Zhangjiagang)'s Rmb4.2 billion five-year term loan was completed on April 2 via mandated lead arrangers Bank of China (Shanghai) and Sumitomo Mitsui Banking Corp. Agricultural Bank of China, Bank of Communications, Bank of Tokyo-Mitsubishi UFJ and China Merchants Bank joined as participants.

Proceeds are to refinance existing debt facilities and to fund a siloxane manufacturing project in Zhangjiagang, China.

Singapore

Ascendas India Trust's S$50 million fundraising was inked last week via Citibank and DBS.

The short-term loan is priced at 600bp over SOR. Proceeds are for refinancing purposes.

A S$221 million financing for MacarthurCook Industrial REIT has been granted a 60-day extension via Commonwealth Bank of Australia and National Australia Bank. The facility will now mature on June 16, 2009.

Proceeds are for general corporate purposes.  

South Korea

A $120 million dual-tranche fundraising for Korea Development Bank is currently in the market via mandated lead arrangers Calyon, Commerzbank, Mizuho Corporate Bank and Natixis.

The deal comprises one- and two-year term loans, which are priced at 200bp and 300bp over Libor respectively.

Senior lead managers coming in with $20 million to $29 million get 190bp and 280bp for the one- and two-year tranches. Lead arrangers providing $10 million to $19 million take 180bp and 260bp, while arrangers holding between $5 million and $9 million earn 170bp and 240bp.

The bullet loan is scheduled to close this Friday (April 10) and signing is targeted for next week. Proceeds are for general corporate purposes.

Taiwan

Kang Na Hsiung Enterprise's NT$1.3 billion five-year fundraising was launched into syndication on April 6 via mandated lead arrangers First Commercial Bank, Industrial Bank of Taiwan and Mega International Commercial Bank.

The debt is split equally into a term loan and a commercial paper guarantee facility. The term loan portion offers a spread of 60bp over the one-year post office savings rate, while the commercial paper guarantee facility portion pays a guarantee fee of 75bp. Both tranches feature a commitment fee of 20bp.

Three levels are being offered in syndication. Equal-status arrangers committing NT$300 million or above gain an upfront fee of 23bp. Participants coming in with NT$200 million to NT$300 million get 13bp and those providing NT$100 million to NT$200 million get 10bp. The deal features a 20% greenshoe option.

Proceeds are to refinance a NT$1.3 billion five-year dual-tranche facility signed in April 2006 and for working capital purposes. The loan is expected to close in mid May.

A NT$2.6 billion five-year dual-tranche financing for Ruentex Development is expected to sign on Friday (April 10) via a consortium of eight coordinating arrangers.

The loan comprises NT$2.5 billion and NT$105 million term loans. The second tranche is provided solely by First Commercial Bank. Guaranteed by the chairman of the company, the facility is priced at 105bp over the one-year post office savings rate and offers a commitment fee of 20bp.

For the first tranche, bookrunners and mandated leads Bank of Taiwan, DBS, Hua Nan Commercial Bank, Land Bank of Taiwan, Mega International Commercial Bank, Taichung Commercial Bank and Taiwan Cooperative Bank lent NT$260 million each, except for First Commercial Bank, which committed NT$320 million. Participants Cathay United Bank, Chang Hwa Commercial Bank and Shanghai Commercial & Savings Bank ended up with NT$120 million apiece.

Proceeds are for the construction of a commercial building complex and for working capital purposes.

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