loan-week-april-916

Loan week, April 9-16

A roundup of the latest syndicated loan market news.

China

China National Machinery Industry Corp's Rmb850 million fundraising has been signed via sole mandated lead arranger and bookrunner Bank of China.

The lead provided Rmb550 million, while participants Bank of Beijing and China CITIC Bank contributed Rmb200 million and Rmb100 million respectively.

Proceeds are to finance the acquisition of China First Tractor Group.

A Rmb35 billion loan for Qingdao Guo Xin Development Corp was signed on April 15 via sole mandated lead arranger China Development Bank. Agricultural Bank of China, Bank of China, Bank of Communications, China Construction Bank, China Everbright Bank, China Merchants Bank and Industrial & Commercial Bank of China have joined the deal at lower levels.

Proceeds are to support the first three phases of a railway construction project in Qingdao, China.

Singapore

HydroChem Singapore's $146 million 28-month, multi-tranche facility has been signed via bookrunners Arab Banking Corp, BNP Paribas and Calyon with Royal Bank of Scotland and Zurich Insurance joining as equal status arrangers.

Proceeds are to support the construction of a membrane-based seawater desalination plant in Magtaa and for trade financing purposes.

South Korea

A $200 million financing was signed for Korea Development Bank on April 15 via bookrunners Calyon, Commerzbank, Mizuho Corporate Bank and Natixis. The facility was oversubscribed and upsized from $120 million.

The term loan is split into a $175 million one-year tranche and a $25 million two-year portion, with spreads of 200bp and 300bp over Libor respectively.

Final allocations saw the leads take $28 million apiece, while senior lead arrangers Citic Ka Wah Bank and Standard Chartered Bank each provided $20 million. Lead arranger Royal Bank of Canada provided $15 million, while Union National Bank and WestLB ended up with commitments of $10 million apiece. Arrangers Banque BIA, Export-Import Bank of China, and Yamaguchi Bank rounded off the syndicate with $5 million each. Proceeds are for general corporate purposes.

Taiwan

E-One Moli Energy Corp's NT$2.5 billion five-year fundraising was signed on April 10 via coordinating arrangers Bank SinoPac, Chinatrust Commercial Bank, First Commercial Bank, Mega International Commercial Bank, Taiwan Business Bank, Taiwan Cooperative Bank and Yuanta Commercial Bank. The facility was oversubscribed and upsized from NT$2.2 billion.

The five-year term loan offers a spread of 110bp over the 90-day or 180-day secondary CP rate and a commitment fee of 10bp. A two-year extension option is available for this facility.

Final allocations saw the seven lead arrangers pledge NT$250 million each, while participants Bank of Taiwan, Hua Nan Commercial Bank, Land Bank of Taiwan and Taichung Commercial Bank came in with NT$155 million apiece. Chang Hwa Commercial Bank provided NT$130 million. 

Proceeds are for the construction of a factory in Southern Taiwan Science Park and for equipment purchases.

A NT$1.5 billion five-year facility supporting the leveraged buyout of Gala TV Corp has been sealed through bookrunners and mandated lead arrangers Chinatrust Commercial Bank and Mega International Commercial Bank.

The debt package is split into a NT$1.3 billion term loan and a NT$200 million revolving credit. Both tranches are priced at 210bp to 285bp over the secondary CP rate (tied to a debt-to-Ebitda ratio) and pay a commitment fee of 40bp.

Chinatrust Commercial Bank and Mega International Commercial Bank contributed NT$550 million and NT$500 million respectively. Lead manager Entie Commercial Bank held NT$275 million, while participants Bank of Panhsin gave NT$95 million. Chang Hwa Commercial Bank rounded out the syndicate with NT$80 million.

Proceeds are to support the MBK Partners-led leveraged buyout of Gala TV Corp completed on December 30, 2008.

Rechi Holdings' $40m multi-tranche facility was amended earlier this month via sole mandated lead arranger Chinatrust Commercial Bank. The original loan agreement was signed in August 2006.

The margin for the three tranches has been increased to 180bp over three-month or six-month Libor, while the tenor of the second and third tranches have been amended from three to five years.

Proceeds are for refinancing, capital expenditure and working capital purposes.

A NT$1.4 billion credit facility for Wah Lee Industrial Corp has been inked via bookrunners Bank SinoPac, Chinatrust Commercial Bank, E.Sun Commercial Bank, Taishin International Bank, Taiwan Business Bank and Yuanta Commercial Bank.

The three-year revolver is priced at 90bp to 125bp over the secondary CP rate with a commitment fee of 20bp.

Final allocations saw the bookrunners contribute NT$200 million each, except for Bank Sinopac, which provided NT$300 million. Mandated lead arranger Bank of Kaohsiung ended up with NT$100 million.

Proceeds are to repay short term debt and for working capital purposes.

Vietnam

Phuc Son Cement's $73 million five-year financing has been completed via sole bookrunner Mega International Commercial Bank.

Guaranteed by World Cement Corp (Singapore), the term loan is priced at 300bp over the cost of funds index and offers a commitment fee of 25bp.

Mega International Commercial Bank lent $36.5 million and participant Vietcombank joined in with $36.5 million.

Proceeds are for capital expenditure purposes.

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