Loan Week, Aug 4 - Aug 10

A round up of the latest syndicated loan market news.

The A$1.445 billion fundraising for Brambles Industries saw 10 banks join in senior syndication. Joining as sub-underwriters are BNP Paribas, Calyon, Commonwealth Bank of Australia, GE, Hypovereinsbank, Mizuho Corporate Bank, National Australia Bank, Royal Bank of Scotland, SG and Westpac Banking Corp.

The six year facility comprises an A$1.004 billion term portion, an A$130 million revolver and an A$275 million capital expenditure tranche. Proceeds will be used to support the A$1.8 billion Kohlberg Kravis Roberts led leveraged buyout of Brambles IndustriesÆ subsidiaries Cleanaway Australia and New Zealand and Industrial Service Australia.

ANZ Investment Bank, Citigroup, Credit Suisse, HBOS and UBS are the mandated lead arrangers. Brambles Industries is borrowing through special purpose vehicle Rubus Intermediate One. A wider general syndication will follow shortly.

MyerÆs A$995 million financing has been closed via mandated lead arrangers Credit Suisse, Goldman Sachs JB Were and National Australia Bank. A total of 13 banks are participating in the deal.

Lenders include Allied Irish Bank, Aozoro Bank, BayernLB, Chinatrust Commercial Bank, Citic Ka Wah Bank, Group Credit Mutuel, Oversea-Chinese Banking Corp, ICBC (Asia), St George Bank and United Overseas Bank.

Proceeds will be used to support the A$1.4 billion Newbridge and Texas Pacific led leveraged buyout of the Myer department store chain. Signing is scheduled for next week.

Rumor has it that Credit Suisse has been mandated to arrange an A$430 million takeover bid for footwear and clothing retailer Colorado Group.


Sole mandated lead arranger Standard Chartered has launched Bangladesh PetroleumÆs $250 million facility into general syndication. The one year loan is fully guaranteed by the Central Bank of Bangladesh. Proceeds will be used for working capital purposes. A roadshow will be held in Dubai next Monday (August 14). Banks have until end of August to revert.


Market talk is that Air China, the countryÆs largest international carrier, is aiming to raise as much as $1 billion renminbi equivalent aircraft financing. The borrower last tapped the market when it raised $48 million in May 2006 via an eight year term loan. That facility was arranged by Calyon, Group Credit Mutuel and NordLB.

Sole mandated lead arranger BNP Paribas (Shanghai) has launched Nanjing Walsin Metal and Dongguan Walsin Wire & CableÆs Rmb800 million equivalent revolving credit into general syndication.

The two year facility comprises an Rmb560 million tranche that will be borrowed by Nanjing Walsin Metal and the remaining $30 million reminbi equivalent portion will be borrowed by both Nanjing Walson Metal and Dongguan Walsin Wire & Cable. Proceeds will be used for working capital purposes.

The borrowersÆ Taiwanese parent company, Walsin Lihwa Corp, is providing a guarantee. Financial close is scheduled on September 8.

Hong Kong

China Special Steel HoldingsÆ $30 million is syndicating via sole mandated lead arranger Citic Ka Wah Bank. Around 10 banks are said to be in the final stage of gaining approvals. The three year facility is priced at 155bp over Libor, translating to a top level all-in of 173.3bp over Libor. Banks have until August 18 to respond.

Joint mandated lead arrangers Citic Ka Wah Bank and UOB Asia have completed the fundraising for Huafeng Textile International GroupÆs HK$250 million. The five year facility saw four banks join in general syndication.

Mandated lead arrangers lent HK$65 million apiece while four other arrangers û DBS Bank (Guangzhou), Industrial & Commercial International Capital, Cathay United Bank and Bangkok Bank û came in with holds of HK$30 million each.

Signing will take place shortly.

Allocations for Link REITÆs HK$5 billion financing have been finalised via mandated lead arrangers Bank of China (Hong Kong), Bank of Tokyo-Mitsubishi UFJ, BNP Paribas (Hong Kong), Calyon, DBS Bank, HSBC and Standard Chartered (Hong Kong). The five year revolving credit has been scaled back from HK$5.6 billion.

Mandated lead arrangers ended up with HK$650 million apiece. Senior manager Industrial and Commercial Bank of China (Asia) provided HK$200 million while Bank of China (Macau) and Tai Fung Bank took HK$150 million and HK$100 million respectively.

Proceeds will be used to refinance an existing facility signed in November 2005. Signing was held on last Friday (August 4).

Signing for Swire PacificÆs HK$3.5 billion facility took place on Monday (August 7) in Hong Kong via an eight bank syndicate. The five year facility has been upsized from HK$3 billion due to a resounding response in general syndication. It offers a spread of 20bp over Hibor and proceeds will be used for general corporate purposes.

Mandated coordinating arrangers are Standard Chartered holding HK$600 million, DBS Bank and Fortis Bank taking HK$575 million each, Westpac Banking Corp lending HK$450 million while ING Bank and SMBC are providing HK$400 million apiece. Two other lenders are Bank of China (Tokyo) and BBVA contributing HK$300 million and HK$200 million respectively.

The $150 million facility for GTL, formerly Global Tele-Systems, has been launched via mandated lead arrangers are Standard Chartered, Bank of Baroda and State Bank of India and Bank of. Thus far, the facility has received commitments from a handful of banks.

The five year facility features a margin of 175bp over Libor and is being marketed on three tiers. Lead arrangers providing $15 million or above receive 85bp, leading to a top level all-in of 192bp over Libor; co-arranger taking $10 million to $14 million earn 75bp for an all-in of 190bp over Libor while senior manager lending $5 million to $9 million get 65bp for an all-in of 188bp over Libor.

Standard Chartered, Bank of Baroda and State Bank of India are running the books. Proceeds will be used for working capital and acquisition purposes. Bank responses are due by August 25.

Tata Steel has awarded the mandate for a $900 million facility to a group of three banks. They are ABN Amro, Citigroup and Standard Chartered. The jumbo loan is set to launch shortly.


Allocations have been finalised for Nishiyama Stainless ChemicalÆs Ñ3 billion facility via sole mandated arranger Bank of Tokyo-Mitsubishi UFJ.

Mandated lead arranger ended up with Ñ1.1 billion. Joining as lenders are Resona Bank committing Ñ600 million, Shoko Chukin Bank providing Ñ450 million, Bank of Ikeda contributing Ñ300 million while Bank of Kyoto, Iyo Bank and Senshu Bank are lending Ñ150 million each and Mizuho Bank offering Ñ100.

Proceeds will be used for working capital purposes. Signing ceremony is scheduled for August 17.


The S$500 million fundraising for Parkway Holdings has been completed via a consortium of 15 banks. The facility has been upsized from S$400 million due to an overwhelming response in general syndication.

Sole mandated lead arranger Standard Chartered ended up with S$50 million. Six other lead arrangers are NordLB (Singapore) taking S$70 million, Commonwealth Bank of Australia (Singapore) lending S$50 million, Landesbank (Singapore) and SMBC (Singapore) committing S$49 million each while ABN Amro (Singapore) and Royal Bank of Scotland are providing S$45 million apiece.

Arrangers are Bank of China (Singapore), Bank of East Asia (Singapore) and Maybank (Singapore) with commitments of S$28 million each. Lead managers are BBVA (Singapore), International Commercial Bank of China (Singapore) and Rabobank International (Singapore) contributing S$14 million apiece while Chang Hwa Commercial Bank (Singapore) and Bank of Communications (Singapore) are pledging S$9 million and S$7 million respectively.

The $40 million fundraising for TT International is progressing in general syndication with banks expected to revert next week. Mandated arrangers are BNP Paribas, DBS Bank, KBC Bank and Oversea-Chinese Banking Corp.

Banks have been invited to join on three tiers. Banks commit $5 million or above receive a top level all-in of 212bp over Libor while banks commit $3 million will earn an all-in yield of 207bp over Libor. Proceeds are to refinance existing debt and for working capital requirements.
South Korea

Korea Aerospace Industries signed a $40 million three year term loan. Mandated arrangers BNP Paribas and Korea Exchange Bank committed $20 million apiece. The facility offers a spread of 60bp over Libor. Proceeds are for working capital purposes.

Shinhan Bank has successfully raised $300 million credit via a total of 13 banks. Mandated arrangers Barclays Capital, BayernLB, BNP Paribas, DBS Bank, HSBC, Lloyds TSB Bank, Mizuho Corporate Bank and Oversea-Chinese Banking Corp lent $25 million apiece while Calyon, HSH Nordbank, ING Bank, SMBC and SwedBank-Sparbanken Sveriage provided $20 million each.

Proceeds will be used to refinance the borrowerÆs $300 million revolver signed in July 2005.


Syndication for Chung Hung Steel CorpÆs NT$12 billion facility is expected to close on August 31. Mandated arrangers are Bank of Taiwan, Chiao Tung Bank, Chinatrust Commercial Bank, Industrial Bank of Taiwan, International Commercial Bank of China, Land Bank of Taiwan, Taipei Fubon Commercial Bank, Taishin International Bank, Taiwan Business Bank and Taiwan Cooperative Bank.

The loan is split into a NT$7 billion ten year term loan portion, a NT$3 billion three year revolving credit and a NT$2 billion five year guarantee facility.

Banks have been invited to join on four levels. Arrangers providing NT$1.2 billion or over earn a management fee of 10bp over CP rate, co-arrangers lending NT$800 million to NT$1.19 billion get 8bp over CP rate, managers contributing NT$300 million to NT$790 million gain 4bp over CP rate and participants offering NT$200 million to NT$290 million receive 1bp over CP rate. Proceeds are to refinance existing debt.

Eastern MultimediaÆs NT$32 billion leveraged buyout financing has been completed via an 18 bank syndicate. The multi tranche facility saw 16 banks join in sub-underwriting.

Mandated lead arrangers and bookrunners are Chinatrust Commercial Bank and Taipei Fubon Commercial Bank taking NT$3.2 billion each while Citigroup is lending NT$2.4 billion. There are nine other sub-underwriters ended up with holds of NT$1.536 billion each. They are BNP Paribas, Calyon, Cathay United Bank, DBS Bank, International Bank of China, SG, West LB, ING Bank and Mizuho Corporate Bank.

China Development Industrial Bank, Industrial Bank of Taiwan, Hsinchu International Bank and Ta Chong Bank are committing NT$1.392 billion apiece while Taishin International Bank and SMBC are providing NT$1.28 billion and NT$1.248 billion respectively.

The loan comprises a NT$22 billion seven year term portion, a NT$8 billion 8.5 year term tranche and a NT$2 billion 8.5 year revolver. Proceeds will be used to support the $1.3 billion Carlyle Group-led leveraged buyout of Eastern Multimedia Group.

Signing took place on July 31.

The NT$14.9 billion fundraising for Eva Airways has been closed and upsized from NT$10.4 billion due to a blowout response. Mandated lead arrangers are Cathay United Bank, Chang Hwa Commercial Bank, Chinatrust Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank, International Commercial Bank of China and Taipei Fubon Commercial Bank.

The 12 year facility saw six banks join in general syndication. They are Bank of Overseas Chinese, Cathay Life Insurance, Central Trust of China, Export-Import Bank of the Republic of China (Taiwan), Land Bank of Taiwan and Taiwan Business Bank.

Proceeds will be used for aircraft financing purposes and signing is targeted for August 18 (next Friday).

Rumor has it that ProMOS Technologies is close to mandating Chinatrust Commercial Bank and Taiwan Cooperative Bank to arrange a NT$15 billion five year financing. A wider syndication will follow shortly. The borrower last visited the market when it raised NT$13 billion in October 2005. That five year facility was arranged by Bank of Taiwan, Chang Hwa Commercial Bank, Taishin International Bank and Taiwan Cooperative Bank.

Rechi HoldingsÆ $40 million multi-tranche financing was signed on Wednesday (August 9). A total of ten banks are participating the deal.

The transaction comprises a $20 million five year term portion, a $10 million five year term tranche and a $10 million three year revolving credit.

Mandated lead arranger China Commercial Bank took $6.5 million while co-arrangers China Development Industrial Bank, Mizuho Corporate Bank and Far Eastern International committed $5.6 million each. Taipei Fubon Commercial Bank and Taiwan Shin Kong Commercial Bank joined as lead managers with holds of $3.6 million apiece. Managers, Bank of Panhsin, Fuhwa Commercial Bank, and Shanghai and Commercial Saving Bank lent $2.8 million each, and Hua Nan Commercial Bank ended up with $1.7 million.

Proceeds will be used to support the construction of a plant in Qingdao and to refinance an existing facility signed in September 2005.

Taiwan High Speed Rail CorpÆs NT$40.7 billion dual-tranche facility has been signed. A total of seven banks are participating in the transaction and allocations have been finalised.

The credit consists of a NT$19.883 billion three year term tranche ôAö and a NT$ 20.817 billion year term tranche ôBö which offer margins of 240bp and 160 bp over SDR deposit rate respectively.
Co-ordinating arrangers Fuhwa Bank and Ta Chong Bank provided NT$800 million each, Taishin International Bank and Taipei Fubon provided NT$785 million apiece. Proceeds are to refinance a NT$323 billion facility signed in February 2000.

Teco Electronics and MachineryÆs NT$5 billion facility has been upsized from NT$4 billion due to oversubscription.

Mandated arrangers Bank of Taiwan, First Commercial Bank, Hua Nan Commercial Bank and Taiwan Cooperative Bank contributed NT$800 million while Cathay United Bank came in with a hold of NT$400 million. Joining as managers were Bank of Kaohsiung, Central Trust of China, Shanghai Commercial & Savings Bank, Shin Kong Commercial Bank and Taiwan Business Bank with tickets of NT$300 million apiece.

The deal offers a spread of 37.5bp over CP rate. Proceeds are for working capital purposes and signing took place on Monday (August 7).


Market talk is that Viet Nam National Shipping Lines is tapping the market for a $2 billion loan. Proceeds will be used to buy 73 vessels and for expansion purposes.

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