Loan Week, April 7-13

A roundup of the latest syndicated loan market news.

Syndication of ConnectEast FinanceÆs A$2.1 billion 10 year facility has been completed via a total 21 banks. The facility was funded on December 21 last year.

Mandated arrangers ABN AMRO, BNP Paribas, BOS International, Commonwealth Bank of Australia and United Overseas Bank committed A$150 million apiece. National Australia Bank contributed A$100 million while Calyon and HypoVereinsbank pledged $80 million each.

Arrangers Royal Bank of Scotland and WestLB took A$140 million apiece, Societe Generale held A$130 million and ANZ Bank and KBC Bank lent A$100 million each.

Co-arrangers Allied Irish Bank, Depfa Bank and Oversea-Chinese Banking Corp lent A$75 million each while Banco Bilbao Vizcaya Argentaria held A$51 million.

Lead managers Dexia Bank, DZ Bank, Mega International Commercial Bank and Natixis ended up with A$50 million apiece.

Macquarie Regional RadioworksÆ A$310 million three year credit has been signed with ANZ Investment Bank as sole lead arranger. The deal was funded in December 21 last year.

This two tranche facility secured a total of 10 participants û Bank of Scotland, Bayerische Hypo- und Vereinsbank, Commonwealth Bank of Australia, ING Bank, Mega International Commercial Bank, Mizuho Bank, National Australia Bank, Rabobank Nederland, Societe Generale and WestLB.

The financing was divided into a A$310 million amortising portion and a A$20 million bullet loan, both with a tenor of three years.

Proceeds of the loan are to refinance an existing debt and for general corporate purposes.

An A$800 million three tranche club deal for Pacific Brands has been signed via mandated arrangers ANZ Investment Bank, Commonwealth Bank of Australia, HSBC Australia, National Australia Bank and Westpac.

All three tranches were bullet cash advances, one facility was for A$150 million, another for A$400 million and the final fraction made up of A$250 million. Maturity dates are February 2009, February 2010 and March 2012 respectively.

Proceeds are to finance the acquisition of Yakka.

Sole mandated arranger Barclays Capital is looking to launch Repco CorporationÆs A$425 million multi-tranche LBO facility early next week.

A senior A$340 million six year portion is split into three tranches û a A$90 million amortising loan offering a margin of 225bp over BBSY, a A$180 million bullet facility paying 200bp and a A$70 million working capital facility. An A$85 million six-and-a-half year sub-tranche carries a margin of 600bp.

Arrangers lending A$50 million or above earn a front-end fee of 75bp and co-arrangers receive 55bp for committing between A$35 million to A$49 million.

Proceeds are to support sponsor CCMP Capital AsiaÆs leveraged buyout of Repco. A bank presentation will be held on April 24 in Sydney with syndication close targeted for the end of May.


CSC Nanjing Tanker CorpÆs $180 million facility has been signed. Calyon was the sole mandated arranger and bookrunner.

Calyon committed $40 million while Industrial & Commercial Bank of China contributed $60 million.

Lead managers China Construction Bank held $30 million while Fortis Bank and Mizuho Corporate Bank took $25 million each.

Hong Kong

China Travel Service (Holdings) Hong KongÆs HK$2 billion five year financing has been launched into general syndication via mandated arrangers Bank of China and HSBC.

Banks have been invited on three tiers. Arrangers committing HK$175 million or above get a management fee of 30bp for an all-in of 42bp over Hibor, co-arrangers with HK$125 million to HK$170 million receive 25bp for an all-in of 41bp while senior managers lending between HK$75 million and HK$120 million get 20bp for an all-in of 40bp.

The deal offers a margin of 36bp over Hibor. Proceeds will be used for general corporate purposes and to refinance an existing loan signed in June 2004. Banks are to revert by the end of April.

A $20 million five year credit for Bilcare is expected to close syndication in the last week of April via sole mandated arranger HSBC.

The loan offers a margin of 110bp over Libor and fees to the market are on two tiers. Those contributing $5 million and above take the arranger title for 100bp flat and senior managers with tickets between $3 million to $ 4.9 million earn 80bp.

Syndication close for Finolex CablesÆ $30 million five year bullet loan has been pushed back from April 12 due to the Easter break.

Mandated lead arrangers and bookrunners Barclays Capital and BNP Paribas have invited banks into syndication and commitments are pending.

Banks have been invited to join on two tiers. Arrangers committing $5 million and above receive a management fee of 40bp and lead managers contributing between $3 million to $4 million earn 35bp.

Industrial Development Bank of India (IDBI)Æs $120 million 357 day bullet loan was signed on April 10. The loan was oversubscribed and increased from $100 million. Original mandated arrangers and bookrunners are DBS Bank, DZ Bank, Mizuho Corp and RZB Austria contributing $15 million apiece.

Commerzbank, First Commercial Bank and Intesa Sanpaolo joined later with $15 million each and received the mandated arranger title.

Committing $5 million apiece were co-arrangers Banco Popolare di Verona e Novara, Export-Import Bank of Republic of China and Unicredito Italiano.

The top level all-in was 23bp over Libor with a margin of 13bp. Participation was divided into four tiers. Mandated arrangers providing $15 million and above earned 10bp, lead arrangers providing $10 million to $14.9 million gained 9bp, co-arrangers holding $5 million to $9.9 million received 8.1bp and lead managers with between $2 million to $4.9 million took 7.2bp.

Pacific First ShippingsÆ $170 million seven year ship fundraising is expected to close towards the end of April via sole mandated lead arranger ICICI Bank.

United Overseas Bank is the only participant which has joined in syndication so far.

The term loan offers a margin of 200bp over Libor and proceeds are to fund the purchase of 12 ships.

Reliance Utilities and Reliance Ports and TerminalÆs $925 million term loan closed syndication late last week via mandated arrangers ICICI Bank and Standard Chartered Bank.

The facility is split into a $425 million loan for Reliance Utilities and a $500 million financing for Reliance Ports and Terminals, both offering a margin of 127bp over Libor on a blended basis. The average life is 6.75 years and 6.91 years respectively.

In sub-underwriting mandated arrangers lending $100 million and above earn 60bp flat and senior lead arrangers committing $60 million to $99 million get 55bp.

In general syndication, four tiers were offered. Lead arrangers providing $50 million and above gain a participation fee of 50bp, arrangers contributing $20 million to $49 million earn 40bp, lead managers between $15 million to $39 million get 30bp and managers lending $10 million to $14 million receive 20bp.

The syndicate of banks has not yet been disclosed. Proceeds of the loans are for the construction of a utility gas plant and for port related infrastructure.

Sole lead arranger ICICI Bank is set to launch United Breweries GroupÆs ú325 million term loan into syndication in May.

The nine year acquisition deal is on a non-recourse basis and is secured by the cashflow and capital expenditure of the company.

New Zealand

Mandated lead arrangers and bookrunners ABN AMRO, Barclays Capital, Calyon and Deutsche Bank are expecting to launch Telecom Corp of New ZealandÆs NZ$1.35 billion dual-tranche LBO facility in May.

The loan is split into a senior tranche and a subordinated portion. Proceeds are to support CCMP Capital Asia and TeachersÆ Private CapitalÆs NZ$2.24 billion acquisition of the borrower.

The transaction should be completed by the end of the month, once the Overseas Investment Office approves the deal.

ARMF (TBP) and ARMF (CP)Æs S$289 million dual tranche 14 month fundraising has been completed via sole mandated arranger BNP Paribas.The deal is split into a S$123 million tranche æAÆ and a S$166 million tranche æBÆ.

Tranche æAÆ saw BNP Paribas commit S$35 million while arrangers Bank of Nova Scotia and Industrial and Commercial Bank of China pledged $23 million apiece. RHB Bank held S$20 million, Bank of Taiwan took S$12 million and Credit Industriel et Commercial lent S$10 million.

In tranche æBÆ, BNP Paribas contributed S$81 million while Bank of Nova Scotia took S$30 million and Credit Industriel et Commercial provided S$20 million. Bank of Taiwan held S$18 million and Maybank ended up with S$17 million.

Proceeds are to finance the acquisition of Central Plaza.

A multi-tranche S$352 million five year refinancing for Eureka office Fund is in syndication via coordinating arrangers BNP Paribas and Oversea-Chinese Banking Corp.

The margin is 54bp over SOR and top level banks committing S$60 million or above earn 15bp flat.

The S$250 million three year multi-tranche credit for Ho Bee Cove is expected to close early next week, after receiving firm commitments from five banks. Mandated arrangers and bookrunners DBS Bank, HSBC and OCBC are waiting for others to revert.

The three tranche loan comprises a S$187 million financing, a S$7 million portion and a S$56 million revolver. The margin is 78bp over SOR.

Fees to the market are on three levels. Arrangers lending S$30 million and above receive a management fee of 18bp, co-arrangers committing S$20 million to S$29 million gain 15bp and lead managers providing S$10 million to S$19 million earn 12bp.

Signing is targeted to take place at the end of the month.

South Korea

Kia Motors CorpÆs Ç225 million three year facility has been inked on a club basis via a consortium of 12 banks.

ABN AMRO and HSBC committed Ç30 million apiece while BNP Paribas, Bank of Tokyo-Mitsubishi, Calyon, DBS Bank and Standard Chartered provided Ç$20 million each. ANZ, Bank of America and Sumitomo Mitsui Banking Corp lent Ç15 million each while Bank of Nova Scotia and Industrial & Commercial Banking Corp took Ç10 million apiece.

Kookmin BankÆs $250 million dual tranche term loan has closed and was signed yesterday (April 12) via 10 mandated lead arrangers û Banc of America Securities Asia, Barclays Capital, BayernLB, BNP Paribas, Citigroup, HSBC, Oversea Chinese Banking Corp, Standard Chartered, Sumitomo Mitsui Banking Corp and Wachovia Bank. All banks were also bookrunners, with the exception of BayernLB.

The facility is split into two tranches. A $100 million two year tranche æAÆ offers a margin of 7bp over Libor while a $150 million three year tranche æBÆ is priced at 10bp. Banks were invited to join on two tiers. Lead arrangers contributing $10 million and above earn a management fee of 8bp for tranche æAÆ and 15bp for tranche æBÆ; and arrangers committing $5 million to $9 million get 6bp and 12bp respectively.

For tranche æAÆ, all 10 mandated lead arrangers pledged $7.8 million apiece, while lead arranger Landesbank Baden-Wurttemberg provided $10 million. JP Morgan Chase and Banca di Roma lent $5 million each with arranger Toronto-Dominion Bank giving $2 million.

For tranche æBÆ, all 10 mandated lead arrangers provided equal amounts of $8.5 million each. Lead arrangers Commerzbank Aktiengesellschaft contributed $20 million, with Agricultural Bank of China, Banque et Caisse dÆEpargne de lÆEtat, Dresdner Bank and Intesa Sanpaolo giving $10 million apiece. The final $5 million was contributed by JP Morgan Chase.

Proceeds are to refinance an existing facility signed in April 2006.

Syndication of SK ShippingÆs $528 million 20 year ship financing has been completed via mandated arrangers Korea Development Bank, Kookmin Bank and Woori Bank who committed $56 million apiece.

Lenders Shinhan Bank took $70 million, Fortis Bank pledged $50 million and BNP Paribas lent $45 million. Korea Development Bank took $40 million and International Bank of Korea held $35 million while Bank of Nova Scotia, Banco Bilbao Vizcaya Argentaria, Hana Bank and National Agricultural Cooperation Federation ended up with $30 million apiece.

Proceeds are to refinance existing debt and for ship financing purposes. The facility is secured by three VLCCs.


A dual tranche NT$1 billion loan for Chuan Lih Fa Machinery Works Corporation has been launched via sole mandated lead arranger Taipei Fubon Commercial Bank.

The fundraising comprises a revolving credit of NT$700 million and a NT$300 million term loan. Both tranches offer a margin of 85bp over the secondary CP rate with a five year maturity.

Syndication is targeted to close by the end of April.

Optimax Technology CorpÆs NT$4 billion club deal has signed. The deal is split equally into two NT$2 billion revolvers with margins of 30bp and 50bp over the primary CP rate respectively.

Mandated arrangers Chinatrust Commercial Bank and Taiwan Cooperative Bank provided NT$1.6 billion apiece while Fuhwa Commercial Bank took NT$800 million.

Yieh Phui (China) TechnomaterialÆs dual currency term loan of $62.3 million was signed on April 11 with BNP Paribas as the sole mandated arranger. The deal was split into a $30 million tranche æAÆ and a RMB250 million tranche æBÆ.

Syndication attracted seven banks in total. Tranche æAÆ saw BNP Paribas commit $2.6 million while arranger Mizuho Corporate Bank provided $5.9 million. Co-arranger Oversea Chinese Banking Corp lent $5 million while lead managers Bank of East Asia, Citic Ka Wah Bank, Hang Seng Bank and Wing Hang Bank contributed $5 million, $6 million, $3 million and $2.5 million respectively.

In tranche æBÆ, BNP Paribas held RMB72.1 million while Woori Bank took RMB50 million and Mizuho Corporate Bank committed RMB46 million. Oversea Chinese Banking Corp lent RMB39 million, Hang Seng Bank gave RMB23.4 million and Wing Hang Bank ended up with RMB19.5 million.

Margins offered were 100bp over Libor for tranche æAÆ and 95bp over PBOC for tranche æBÆ. Both tranches came with a commitment fee of 20bp.

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