loan-week-april-410

Loan week, April 4-10

A roundup of the latest syndicated loan market news.
Australia

Candlestick BidcoÆs A$610 million dual tranche fundraising has been completed on a club basis via a group of four mandated lead arrangers.

The loan comprises a A$540 million three year revolving/term loan and a $70 million three year bullet.

Final allocations saw ANZ provide A$220 million while Suncorp-Metway contributed A$170 million. BOS International (Australia) committed A$145 million while National Australia Bank took A$75 million.

Proceeds are to refinance existing debt and to fund acquisitions.

A A$2.26 billion multi-tranche LBO facility for Ned Group Holdings, an SPV of Coates Hire, is still in general syndication, ABN AMRO, ANZ, Calyon, Mizuho Corporate Bank, Sumitomo Mitsui Banking Corp and Westpac Banking Corp are the original mandated arrangers.

The debt package comprises a A$2.03 billion six year credit, a A$175 million loan and a A$60 million revolver.

Senior syndication saw AIB Bank, Aozora Bank, Bank of Ireland, Bank of Tokyo-Mitsubishi UFJ, BOS International, Commonwealth Bank of Australia, Deutsche Bank, GE Commercial Finance, Rabobank, Scotiabank and WestLB coming in as equal-status arrangers.

After the recent roadshow in Taipei, a number of Taiwanese lenders are looking at the deal. This would mark TaiwanÆs first foray in the Australian debt market. Close of syndication has been left open to allow sufficient time for potential lenders to decide.

Proceeds are to support the Carlyle Group and National Hire-led leveraged buyout of Coates Hire.

Primary HealthcareÆs A$2.54 billion multi-tranche fundraising has already received a handful of commitments since being launched into sub-underwriting. The deal has been partially funded via mandated arrangers and bookrunners ABN AMRO, Calyon, Credit Suisse, Deutsche Bank and National Australia Bank.

The two year credit comprises a A$1.44 billion loan, a A$1 billion bullet and a A$100 million portion with a 12 month extension option.

Banks have until mid-April to revert with general syndication expected to be launched soon after.

Proceeds are to support the acquisition of Symbion Health.

China

Country GardenÆs $200 million five year offshore financing has generated good interest amongst potential lenders since its soft launch at the end of March via sole lead Bank of China.

The transaction is slated to be formally launched into the market at the beginning of May after changes to the loan structure have been finalised amidst new property regulations and laws.

Palm Springs HoldingsÆ $120 million two and a half year fundraising was completed last week via sole bookrunner Credit Suisse.

Full syndication was undisclosed. Proceeds are to fund the development and construction of real estate properties.

A $200m three year term loan for Protostar has been signed via sole lead arranger Credit Suisse.

The margin is priced at 450bp over Libor. The funds are to support the construction of satellites used for television broadcasting.

Hong Kong

A $150 million three year credit for Huawei Tech Investment was signed on April 3 on a club basis via leads Bank of China (Hong Kong), Royal Bank of Scotland and Standard Chartered with each lending $50 million.

The loan features a margin of 65bp over Libor and a two year extension option to be exercised at the discretion of the borrower.

Marble WayÆs, an SPV of Shui On Development, HK$2.54 billion multi-tranche financing has been inked through sole mandated lead Credit Suisse.

The facility is split into three term loans - a HK$1.32 billion tranche, a HK$740 million portion and a HK$480 million credit. The margins pay a spread of 450bp over Libor for the HK$740 million portion and 200bp for the other two tranches.

Full syndication is undisclosed. Proceeds are for the development of property.


India

Roadshows were held in Singapore and Taipei on April 9 and April 10 for Bank of IndiaÆs $100 million three year facility. Bank of Tokyo-Mitsubishi UFJ, DZ Bank, HSBC, Intesa Sanpaolo and Sumitomo Mitsui Banking Corp are leading the deal.

Banks have been invited on three tiers. Mandated lead arrangers committing $15 million or above gain 60bp in management fees for an all-in of 110bp while arrangers providing $10 million to $15 million receive 45bp for an all-in of 105bp. Co-arrangers coming in with tickets of $5 million to $10 million get 30bp for an all-in of 100bp.

The margin is priced at 90bp over Libor. Banks have until the end of April to respond.

Tata ChemicalÆs $850 million dual tranche five year financing is still in senior syndication via mandated leads ABN AMRO, Bank of Nova Scotia, Calyon, HSBC, Mizuho Corporate Bank, Rabobank and Standard Chartered Bank.

The credit comprises a $500 million five year fundraising that will be syndicated to the market while a $350 million portion will be completed as a club deal by the seven leads. The margin is priced at 135bp over Yen-Libor and there is an average life of 5.25 years.

So far, six banks are processing credit approvals and syndication is scheduled to close by the end of next week. General syndication will not be launched until the end of the month to avoid coinciding with another transaction, Tata Motors.

Proceeds are to support the acquisition of US-based General Chemical Industrial Products.


Syndication of TML HoldingsÆ, an SPV of Tata Motors, $3 billion 12-month bridge facility has seen a couple of banks join the deal at the top. Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Citi, ING Bank, JPMorgan, Mizuho Corporate Bank, Standard Chartered Bank and State Bank of India are the leads who have also fully underwritten the loan.

Banks have been invited on two levels in senior syndication and four in general. At the mandated arranger level, banks underwriting $175 million or above receive 5bp in underwriting fees and 45bp in upfront fees for an all-in of 160bp over Libor. Mandated arrangers coming in with take-and-hold commitments of $150 million gain 45bp for an all-in of 155bp over Libor.

Lead arrangers providing $100 million or above get 40bp for an all-in of 150bp while arrangers holding between $75 million and $99 million receive 35bp for an all-in of 145bp. Lead managers committing between $50 million and $74 million gain 30bp while managers lending between $25 million and $49 million get 25bp for all-ins of 140bp and 135bp respectively.

The margin is 85bp for the first six months, 120bp from the sixth to the ninth month and 150bp thereafter. The blended margin is 110bp over Libor.

Senior syndication is targeted to close in mid-April and general syndication is expected to be completed at the end of April.

Proceeds are to finance the acquisition of Jaguar and Land Rover from Ford.

Visiting the market again is Vedanta Resources. The company is looking to refinance the bridge facility signed in August 2007. Banks have not been officially mandated but the previous original mandated leads ABN AMRO, Barclays Capital, Citi and ICICI Bank are the frontrunners.

Banks are expected to be mandated by early next week and syndication is slated to be launched towards the end of April.
Indonesia

Senior syndication of Calipso InvestmentÆs, an SPV of Bumi Resources, $485 million dual tranche debt package has closed via sole mandated lead and bookrunner Credit Suisse.

The deal comprises a $110 million four year and a $375 million two year term loan. The margin is priced at 350bp and 250bp over Libor respectively.

Syndication saw ICICI Bank and WestLB joining in as equal status mandated arrangers. Four more banks have also committed in general syndication.

The closing date is scheduled for the end of the month. Proceeds are to support the acquisition of an Australian company, Herald Resources.

Japan

Mitsubishi CorpÆs $1 billion one year credit facility was inked on Monday (April 7) through sole mandated arranger Citi.

Syndication saw Bank of Tokyo-Mitsubishi UFJ and 12 other undisclosed financial institutions joining in.

Proceeds are for general corporate purposes.

New Zealand

Medical SecuritiesÆ NZ$155 million dual tranche financing has been inked via sole bookrunner ANZ.

The debt is split between a NZ$100 million three year bullet and a NZ$55 million one year revolver.

Allocations saw the bookrunner taking NZ$98.5 million while Westpac as lender held NZ$56.5 million.

The funds are to refinance a deal signed in November 2007.

A NZ$200 million one year revolver for Zespri Group has been sealed via a consortium of four banks.

Syndication saw lead ANZ, lenders Bank of New Zealand, Rabobank and Citi each commit $50 million apiece.

Singapore

A S$615 million four year bullet for Pinnacle (Sentosa) has been completed on a club basis via six banks- CIMB Bank, DBS Bank, HSBC, Maybank, Oversea-Chinese Banking Corp and Sumitomo Mitsui Banking Corp.

Ho Bee Investment and IOI Properties are the guarantors in the facility.

Resorts World at SentosaÆs (RWS) S$4.19 billion multi-tranche debt package is still in senior syndication and is being well received with at least eight commitments so far. The facility is being led by DBS Bank, HSBC, Oversea-Chinese Banking Corp, Sumitomo Mitsui Banking Corp and Royal Bank of Scotland.

The seven and a half year credit comprises a S$3.5 billion amortising loan, a S$500 million revolver and a S$193 million bank guarantee. DBS Bank and Oversea-Chinese Banking Corp jointly provided the bank guarantee. The deal pays a spread of 175bp over Libor.

The response from the market has exceeded expectations and senior syndication is slated to close by next week. General syndication may not take place if enough commitments have been received.

Proceeds are for the construction of an integrated resort located on Sentosa Island, Singapore.

Syndication of Savu InvestmentsÆ S$586.7 million dual tranche three year credit has been extended till the end of the month. So far, up to 10 banks are said to have committed to the facility which is being led by Standard Chartered.

The loan comprises a S$486.1 million three year facility and an S$81.1 million three year portion. Both tranches offer a spread of 85bp over SOR.

Taiwan

A NT$1.82 billion three and a half year credit for Far Eastern International Leasing Corp was signed on April 2 via mandated arrangers Agricultural Bank of Taiwan, Chang Hwa Commercial Bank, Chinatrust Commercial Bank and Taiwan Shinkong Commercial Bank. The facility was upsized slightly from NT$1.8 billion.

The loan pays a spread of 60bp over the secondary CP rate.

Final allocations saw the mandated leads providing NT$300 million apiece. Coming in as co-arrangers were Mega International Commercial Bank and Hua Nan Commercial Bank contributing NT$300 million and NT$200 million respectively. Rounding off the syndicate was Bank of Taiwan with a hold of NT$120 million as a manager.

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

Syndication of Jih Sun SecuritiesÆ NT$2.5 billion three year financing has closed via mandated leads and bookrunners Agricultural Bank of Taiwan, Chang Hwa Commercial Bank, Chinatrust Commercial Bank, Mega International Commercial Bank and Taiwan Cooperative Bank.

The margin is priced at 65bp over the 90-day secondary CP rate. Final allocations are yet to be disclosed.

The signing date is scheduled for April 15. Proceeds are for working capital purposes.

KemfloÆs NT$960 million multi-tranche fundraising has been signed via a consortium of five banks.

The debt comprises a NT$432 million five year term loan, a NT$192 million five year credit and a NT$336 million five year revolver.

Final allocations saw the bookrunners Chinatrust Commercial Bank and Mega International Commercial Bank commit NT$250 million each while Chang Hwa Commercial Bank contributed NT$200 million.

Manager Taiwan Shing Kong Commercial Bank held NT$160 million while Taiwan Cooperative Bank lent NT$100 million as a participant.

Vietnam

The dust has finally settled on the confusion caused by Bank for Investment and Development of Vietnam (BIDV) Æs two simultaneous debt packages in the market. One is led by Standard Chartered and the other by ANZ and Sumitomo Mitsui Banking Corp.

The borrower has clarified that it now has only one financing led by Standard Chartered in the market to avoid any confusion.

The $100 million one year facility features a spread of 85bp over Libor and is being syndicated on a best effort basis.

Banks have been invited at three levels with mandated leads getting 25bp in upfront fees for providing $20 million and above. Lead arrangers holding between $10 million and $19 million gain 20bp while arrangers lending between $5 million and $9 million receive 15bp.

The deadline for banks to revert is at the end of April.



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