loan-week-august-17

Loan week, August 1-7

A roundup of the latest syndicated loan market news.
Australia

A A$1.2 billion multi-tranche debt package for ABB Grain was sealed on July 31 via mandated leads and bookrunners Commonwealth Bank of Australia and Rabobank.

The deal is split into three equal tranches; a credit facility with a tenor of 364 days and two three-year revolvers.

Syndication saw ANZ and Westpac coming in as senior co-arrangers, while National Australia Bank joined in as a co-arranger. HSBC was a lead manager.

Proceeds are to refinance existing debt and for capital expenditure purposes.

Namoi Cotton FinanceÆs A$80 million facility was signed on August 1 via mandated leads ANZ and Cooperatieve Centrale Raiffeisen-Boerenleenbank on a club basis. The mandated leads each committed A$40 million.

The loan comprises a A$20 million three-and-a-half-year term loan and three eight-month revolvers split into A$48 million, A$10 million and A$2 million tranches.

China

Syndication of Inner Mongolia Huomei Hongjun Aluminum & ElectricityÆs $200m three-year debut loan was well received and closed oversubscribed. The mandated arrangers and bookrunners are Fortis and Royal Bank of Scotland.

Syndication saw a total of eight lenders joining in. The facility is most likely going to be upsized to $250 million with bank commitments also needed to be scaled back.

The signing date is slated for mid-August. Proceeds are for the purchase of machinery and aluminium.

Shanghai Zhenhua Port MachineryÆs $177.5 million three-year financing was completed on July 30 via original mandated leads and bookrunners Calyon and Royal Bank of Scotland. The loan was already upsized to $125 million from $100 million prior to launch, but was increased further due to the good market response.

The bullet loan pays a spread of 215bp over Libor.

Final allocations saw the bookrunners contributing $20 million apiece. Coming in as equal-status lead arrangers were Commerzbank, which provided $25 million, and BayernLB, Fortis and KBC Bank, which took $20 million each.

Arrangers Bank of Nova Scotia held $12.5 million, while Natixis, Svenska Handelsbanken and Wing Hang Bank committed $10 million apiece. Rounding off the syndicate as senior managers were Dah Sing Bank and United Overseas Bank, lending $5 million each.

Proceeds are for working capital requirements.

A Rmb500 million term loan for Shanghai Zijiang Enterprise is still in syndication via sole bookrunner Calyon.

The margin is priced at 105% of the PBOC rate. Banks have until the end of the month to revert.

Proceeds are for working capital purposes.

Hong Kong

A $200 million three-year dual-currency financing for Peace Mark (Holdings) was launched on July 29 via bookrunners ABN AMRO, Banc of America Securities Asia, Commonwealth Bank of Australia, Deutsche Bank and ING Bank.

The deal features an average life of 2.25 years and a margin of 160bp over Hibor or Libor. Mandated lead arrangers joining with $15 million or above earn 90bp. Lead arrangers offering $10 million to $14 million get 80bp and arrangers lending between $5 million and $9 million take 70bp.

Proceeds are to refinance a term loan and a revolver signed in June 2007. Banks will have until August 19 to revert.

India

Bank of BarodaÆs $175 million three-year term loan was signed on August 5 via mandated lead arrangers Banc of America Securities Asia, BNP Paribas, DZ Bank (Singapore branch), Sumitomo Mitsui Banking Corp and Taiwan Cooperative Bank (offshore banking branch).

Joining as lead arrangers are Bank of Taiwan (offshore banking branch), Banque des Mascareignes, Chang Hwa Commercial Bank (offshore banking branch), Land Bank of Taiwan (offshore banking branch) and Mega International Commercial Bank (Labuan branch).

Cathay United Bank (Labuan branch), First Commercial Bank (Singapore branch), Kommunalkredit International Bank, Shanghai Commercial & Savings Bank (offshore banking branch) and Westdeutsche Genossenschafts-Zentralbank are the arrangers of the transaction.

The pricing of the deal is 105bp over Libor. Proceeds are for on-lending purposes.

A $90 million three-year fundraising for Indian Oversea Bank was launched into the market on July 25 via bookrunners Bank of Tokyo-Mitsubishi UFJ, Calyon, HSBC, Intesa Sanpaolo, Natixis and Sumitomo Mitsui Banking Corp.

The term loan is priced at 110bp over Libor and banks are welcome to come in at three levels. Co-arrangers providing $15 million or above get an upfront fee of 54bp. Lead arrangers committing between $10 million and $14 million earn 39bp. Senior managers lending $5 million to $9 million take 24bp.

Proceeds are for working capital purposes. The deadline for commitments is expected to be in the last week of August.

Indonesia

A $104 million multi-tranche facility for PT Energi Sengkang û the SPV of Energy World Corp (EWC) and PT Medco û was closed on August 4 via mandated lead arrangers Mizuho Corporate Bank and Standard Chartered Bank. KBC Bank (Singapore branch), Natixis and Nordkap Bank came in as lead arrangers.

Proceeds are to finance a power and gas field project in South Sulawesi, Indonesia.

PT Astra Sedaya FinanceÆs $80 million two-year and nine month fundraising was launched into syndication in late July via coordinating arrangers and bookrunners Bank of Tokyo-Mitsubishi UFJ, Chinatrust Commercial Bank, Mizuho and Sumitomo Mitsui Banking Corp.

The deal features an average life of 1.875 years and a commitment fee of 25bp for the first six months and 50bp for the seventh to ninth months. The margin for the amortising loan is 160bp over Libor for the offshore lenders and 170bp over the same benchmark for the onshore lenders.

Mandated lead arrangers joining with $20 million or above get a fee of 75bp while lead arrangers committing between $10 million and $19 million earn 70bp.

Proceeds are for on-lending purposes. The deadline for commitments is expected to be by the end of August.

NEC CorpÆs Ñ40 billion one year transaction has been sealed via sole mandated lead and bookrunner Citi.

Syndication saw BNP Paribas, HSBC and JP Morgan joining in with three other undisclosed financial institutions.

New Zealand

A NZ$150 million three-year term loan for Fletcher Building was inked on July 31 as a club deal via a syndicate of six mandated lead arrangers.

Final allocations saw ANZ provide NZ$43.9 million while Bank of New Zealand and Westpac held NZ$26.5 million apiece. Bank of Tokyo-Mitsubishi UFJ, Commonwealth Bank of Australia and HSBC took NZ$17.7 million each.

The funds are to refinance existing debt.

Unison NetworksÆ NZ$200 million multi-tranche fundraising was signed on July 31 via sole mandated lead and bookrunner ANZ.

The loan comprises three term loans û an NZ$80 million four-year credit, a NZ$60 million three-year portion and a NZ$60 million two-year tranche.

Allocations saw ANZ holding NZ$67.5 million while participants Commonwealth Bank of Australia and Westpac contributed NZ$55 million each. Bank of New Zealand gave NZ$22.5 million.

Proceeds are to refinance an existing facility.

Singapore

A S$1.2 billion equivalent one-and-a-half-year acquisition bridge loan for Cairns û an SPV of Tecity Group û was completed on August 1 by sole bookrunner Standard Chartered Bank. Bank of Tokyo-Mitsubishi UFJ, Commerzbank (Singapore branch) and United Overseas Bank joined in as senior mandated lead arrangers. Sumitomo Mitsui Banking Corp (Singapore branch) came in as the mandated lead arranger, while Maybank (Singapore branch) and RHB Bank (Singapore branch) participated as lead arrangers.

The financing features a step-up margin of 150bp over SOR or Libor for the first 12 months, and 175bp over the same benchmark thereafter. Proceeds are to partly finance the tender offer made by the borrower for Straits Trading Company.

Taiwan

Foxconn (Far East)Æs $1.035 billion dual tranche facility was inked last Thursday (July 31) through a consortium of 10 bookrunners.

Mandated lead arrangers Bank of Tokyo-Mitsubishi UFJ, Barclays, Cathay United Bank, Chang Hwa Commercial Bank, ING Bank, Mega International Commercial Bank, Mizuho Corporate Bank, Standard Chartered Bank (Taiwan branch) and Sumitomo Mitsui Banking Corp contributed $100 million apiece while Shanghai Commercial & Savings Bank committed $95 million. Arranger Taiwan Business Bank and manager Taiwan Cooperative Bank joined with $30 million and $10 million respectively.

The term loan is split into a $535 million three-year tranche with a two-year extension option and a $500 million five-year portion. Guaranteed by the parent of the borrower, Hon Hai Precision Industry, the margins for the two portions are 40bp and 45bp over Libor respectively.

Proceeds are to meet the working capital requirements of the borrower and its subsidiaries in China and Vietnam.

¬ Haymarket Media Limited. All rights reserved.