loan-week-august-1723

Loan Week, August 17-23

A roundup of the latest syndicated loan market news.
Australia

National Australia Bank has funded a A$108.5 million multi-tranche facility for On Site Rentals & Access Holdings.

The five-year fundraising comprises a A$22.5 million five-year term loan, a A$46 million bullet loan, a A$15 million facility and two A$5 million portions.

It has been launched into general syndication, with National Australia Bank as the sole mandated arranger and bookrunner. Next Capital is the guarantor.

SPI (Australia) AssetsÆ A$6.2 billion one-year acquisition bridge loan has been completed as a club deal via a syndicate of nine banks.

Mandated arrangers joining with a contribution of A$712.5 million each were Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Commonwealth Bank of Australia, Fortis Project Finance, Morgan Stanley, Mizuho Corporate Bank, Royal Bank of Scotland. National Australia Bank committed A$500 million.

Singapore Power Facility is the guarantor.

China

ErTan Hydropower DevelopmentÆs Rmb24 billion 25-year financing has been inked via sole mandated arranger Bank of China, which provided Rmb7.2 billion.

Co-ordinating arranger China Development Bank contributed Rmb9.6 billion. Lenders ICBC Asia lent Rmb3.12 billion, China Construction Bank Rmb1.92 billion and Agricultural Bank of China Rmb960 million, while Shanghai Pudong Development Bank and China Merchants Bank took Rmb600 million apiece.

Proceeds will support a hydropower dam project. Cheng Du Municipal Government is acting as a guarantor.

TAGAL (ANSC-TKS Galvanizing)Æs Rmb1.709 billion dual tranche credit has been signed via sole mandated arranger Bank of China.

The term loan is divided into a Rmb1.083 billion tranche and a Rmb625 million portion, both with a 10-year tenor. Margins are at 90% over the People's Bank of China rate.

Allocations saw the bookrunner provide Rmb1.189 billion and one other bank, China Citic Bank lending Rmb520 million as a participant.

Proceeds are for general and working capital purposes.
Hong Kong

A HK$430 million three-year amortising loan for AMVIG Holding was completed last week (August 16) via sole mandated lead arranger ABN AMRO.

Final allocations saw the bookrunner contributing HK$35 million with participants China Construction Bank (Hong Kong Branch) and Commonwealth Bank of Australia providing HK$115 million and HK$90 million respectively. Bank of Tokyo-Mitsubishi UFJ ended up with HK$65 million, DBS Bank (Hong Kong Branch) took HK$55 million and CITIC Ka Wah Bank and ICBC (Asia) committed HK$35 million apiece.

Proceeds are for working capital purposes.

Syndication is ongoing for K Wah Stones HoldingsÆ HK$1.5 billion five-year revolver led by mandated arrangers HSBC, CCB International Finance, Hang Seng Bank and Shanghai Commercial Bank. HSBC is the sole bookrunner.

Banks have been invited to join on three tiers. Arrangers committing HK$150 million or above receive 25bp in management fees. Co-arrangers providing between HK$100 million and HK$145 million gain 17.5bp while senior managers taking HK$50 million to HK$95 million get 10bp.

The deal offers a margin of 58bp over the Hong Kong Interbank Offered Rate (Hibor). K. Wah International Holdings is the guarantor. Banks are expected to revert by the end of this week.

Lee & Man Paper ManufacturingÆs HK$2 billion five-year term loan was signed last week (August 16) via mandated arrangers and bookrunners DBS Bank and Standard Chartered Bank. The facility was oversubscribed and upsized from HK$1.5 billion due to an overwhelming market response and will not be launched into general syndication.

Final allocations saw the bookrunners commit HK$182 million apiece with 12 other banks joining in as equal-status mandated arrangers providing HK$126 million each. The banks comprise Bank of Communications (Hong Kong Branch), Bank of East Asia, Bank of Nova Scotia Asia, Bank of Tokyo-Mitsubishi UFJ (Hong Kong Branch), China Construction Bank International Finance, CITIC Ka Wah Bank, Export Development Canada, Industrial & Commercial Bank of China (Asia), KBC Bank, Mizuho Corporate Bank, Nanyang Commercial Bank (Hong Kong Branch) and Sumitomo Mitsui Banking Corp. Completing the syndicate was Tai Fung Bank, committing HK$124 million as lead arranger.

Lung Cheong International HoldingsÆ HK$200 million credit was signed on August 21 via a consortium of seven banks.

The deal pays a spread of 90bp over Hibor and carries a tenor of 3.5 years with a one-year extension option.

Mandated arrangers Bank of China and Hang Seng Bank provided HK$42.5 million apiece. Export Development Canada committed HK$35 million while Standard Chartered contributed HK$30 million. ABN AMRO and Bangkok Bank each lent HK$20 million while United Overseas Bank ended up with HK$10 million.

Lung Cheong Toys, Kids Galaxy Corp. and LC Technology are the guarantors.

New World DevelopmentÆs HK$1 billion five-year financing is slated to sign at the end of the month via mandated leads Agricultural Bank of China (Hong Kong Branch), Bank of Tokyo-Mitsubishi UFJ, Citi and Mizuho Corporate Bank (Hong Kong Branch). Citi is the sole bookrunner and original mandated lead arranger.

The facility was upsized from HK$800 million due to a strong response from the market. The deal pays a spread of 37bp over Hibor.

Final allocations saw the mandated leads provide HK$130 million apiece with arrangers Scotiabank (Hong Kong) and Wing Lung Bank contributing HK$100 million each. Chiyu Banking Corp, Malayan Banking (Hong Kong Branch), Public Bank (Hong Kong) and Tai Fung Bank all ended up holding HK$70 million apiece.

Proceeds are to refinance an existing facility signed in 2002 and for working capital purposes.
India

Alok IndustriesÆ $75 million five-year fund-raising has closed via lead arrangers Barclays Capital, Bank of India, State Bank of India and UTI Bank. The facility was heavily oversubscribed due to an enthusiastic market response.

The facility features a $25 million greenshoe, which the borrower is considering exercising. Signing is slated for the week of August 27.

A $3.1 billion bridge loan for AV Minerals (Netherlands) and AV Metals, which are wholly-owned subsidiaries of Hindalco Industries, was closed on August 16 via a consortium of 14 mandated lead arrangers. Original lead arrangers and bookrunners ABN AMRO, Bank of America and UBS (Singapore Branch) funded the deal in May.

The dual-tranche facility is spilt between the two subsidiaries with a $2.2 billion financing for AV Minerals and a $900 million portion for AV Metals, both with a tenor of 18 months. Pricing was offered on two levels, 30bp for the first year and 80bp over the London Interbank Offered Rate (Libor) for the remaining six months.

Final allocations saw mandated lead arrangers ABN ARMO commit $384.64 million with Bank of America and UBS (Singapore Branch) holding on to $280.63 million and $280 million respectively. Bank of India provided $185.53 million, while ICICI Bank and Mizuho Corporate Bank contributed $180.26 million apiece. Deutsche bank (Singapore Branch) took $178.16 million while Citi (Bahrain Branch), Standard Chartered Bank and Sumitomo Mitsui Banking Corp all held $175 million each. State Bank of India and Bank of Tokyo-Mitsubishi UFJ committed $170 million and $150 million respectively. Completing the mandated arranger group were BNP Paribas, which lent $135.53 million, and HSBC which joined with $125 million.

Coming in as lead arrangers were Rabobank with $105.26 million and Calyon with $100 million. Rounding up the syndicate as an arranger was Commonwealth Bank of Australia (Singapore Branch) holding onto $50 million.

Proceeds are to support the acquisition of Canada-based Novelis.

ICICI BankÆs $1.5 billion yen-equivalent multi-tranche facility has received its first commitment in general syndication from Banco Nacional Ultramarino. The fundraising is led by a consortium of 10 mandated lead arrangers û BayernLB, BNP Paribas, Calyon, Commerzbank, Goldman Sachs, HSBC, Intesa Sanpaolo, Natixis, Standard Chartered Bank and Sumitomo Mitsui Banking Corp.

The financing is split into three equal tranches comprising a $500 million 364-day tranche æAÆ, a $500 million three-year tranche æBÆ and a $500 million five-year tranche æCÆ. Margins are priced at 15bp, 38bp and 55bp over Libor for tranches æAÆ, æBÆ and æCÆ respectively.

Banks have until August 24 to revert. The loan will be syndicated in Japanese yen, with at least 25% of the final amount in US dollars.

The deadline for banks to revert on Jindal StainlessÆ $200 million financing has been extended to the end of August. Barclays, Citi, State Bank of India and UTI Bank are the mandated arrangers.

So far, they have received commitments from 15 banks and is waiting for some banks to process their approvals.

Syndication of Kesoram IndustriesÆ $70 million seven-year facility, led by ICICI Bank, is slated to close this Friday (August 24) following commitments from three banks. Two more banks are awaiting approvals.

The facility pays a spread of 125bp over Libor. The funds are to partly finance the borrowerÆs expansion of cement manufacturing capacity by 1.65 million metric tonnes per annum to 5.30 mmtpa, clinker capacity by 1.35 mmtpa to 4.65 mmpta and captive thermal power plant by 18.0 megawatts to 61.2MW at its existing Vasavdatta unit. The total cost of expansion is $109.8 million, of which $39.8 million will be funded by way of internal accruals and the rest via loans.

Reliance IndustriesÆ $500 million five-year bullet loan has been launched into general syndication a week after being launched into sub-underwriting via lead arrangers ABN AMRO, Bank of Tokyo-Mitsubishi UFJ, Calyon, HSBC and Standard Chartered Bank.

The facility carries a spread of 39bp over Libor. Banks wanting to join as mandated lead arrangers must underwrite $75 million with a take and hold of $50 million, earning an underwriting fee of 5bp and a management fee of 70bp.

General syndication is expected to close by August 31 with senior syndication a few days earlier.

Proceeds are for capital expenditure of the borrowerÆs oil and gas business.

Tata America International CorpÆs (TAIC) $100 million three-year fundraising was launched into general syndication on August 16 via mandated leads Banc of America Securities Asia and Citi.

The bullet facility pays a margin of 44bp over Libor.

Banks joining at the top as equal-status arrangers with $15 million or above earn 5bp in underwriting fees and 10bp upfront. A take and hold option with 10bp in fees is also available to those contributing $12.5 million or above.

In general syndication, lead arrangers committing $5 million to $10 million gain 7.5bp. A roadshow was held in Singapore yesterday (August 23) and banks have until September 10 to revert.

Vedanta ResourcesÆ $1.1 billion one-year bridge facility was signed on August 20 via a consortium of 16 banks.

The bullet loan features a spread of 30bp for the first six months and 65bp thereafter.

Mandated lead arrangers Abu Dhabi Commercial Bank provided $100 million while joining with holds of $75 million each were ABN AMRO, Barclays Capital, Bank of Baroda, BNP Paribas, Calyon, Citi Global Markets (Singapore), DBS Bank, Fortis Bank, Mizuho Corporate Bank, Societe Generale and Sumitomo Mitsui Banking Corp. Bank of Tokyo-Mitsubishi UFJ took $73 million while ICICI Bank (United Kingdom) held $52 million. ICICI Bank (Canada) provided $25 million.
Lead arranger DZ Bank ended up with $25 million.

Proceeds are to support the acquisition of a 51% stake in Sesa Goa from Mitsui & Co.

Signing for Suzlon Energy, AE Rotor Holdings and SE Drive TechnikÆs Ç1.08 billion multi-tranche facility has been extended to Friday. The deal is led by mandated lead arrangers ABN AMRO, Banco Espirito Santo de Investimento, Commerzbank, ICICI Bank, Intesa Sanpaolo, HSBC, HSH Nordbank, NordLB, Rabobank, State Bank of India, and WestLB.
Indonesia

A $200 million five-year term loan for Chandra Asri is still in general syndication via mandated arrangers DBS Bank, Standard Chartered Bank and Sumitomo Mitsui Banking Corp.

The loan pays a spread of 275bp over Libor and carries an average life of 3.5 years. Two commitments have been received so far, with syndication looking to close very shortly. Proceeds are for general corporate and working capital purposes.

Pamapersada NusantaraÆs $350 million dual-tranche credit was launched into general syndication on August 8 via mandated lead arrangers DBS Bank, HSBC, Mizuho Corporate Bank, Standard Chartered Bank, Sumitomo Mitsui Banking Corp and United Overseas Bank

The facility consists of a $240 million term loan and a $110 million revolver, featuring a blended average life of 3.1 years.

The targeted closing date has been extended to early September. Proceeds are to refinance existing debt and for general corporate purposes.

Macau

Syndication has been delayed for Melco PBL Entertainment (Macau)Æs $1.25 billion dual-tranche facility via ANZ, Banc of America Securities Asia, Barclays Capital, Deutsche Bank and UBS.

The delay is a result of the borrower deciding to restructure the loan.

The original loan comprises a $1 billion seven-year term loan and a $250 million revolving credit facility. The margin for both tranches range from 150bp to 200bp over Libor and are tied to an Ebitda ratio.

The funds are to partly support the City of Dreams casino resort project

Bank of China, Calyon, HSBC, Standard Chartered and Sumitomo Mitsui Banking Corp have been mandated to arrange a HK$10 billion five-year credit for Swire Pacific.

New Zealand

A NZ$300 million dual-tranche facility has been completed for Infratil via ANZ, Bank of New Zealand and HSBC.

The financing is split equally into two NZ$150 million revolvers with maturities of one and three years respectively.

Bank of New Zealand committed NZ$125 million while HSBC contributed NZ$100 million. ANZ took NZ$75 million.

Proceeds are for acquisition purposes.

Singapore

A S$250 million three-year dual-tranche facility for HSBC Institutional Trust Services (Singapore), acting as trustee for Parkway Life Real Estate Investment Trust, has been funded by sole lead arranger Standard Chartered Bank. Syndication is in process.

The financing is divided into a S$250 million term loan and a S$50 million revolving credit portion.

Funds will be used to partially finance the acquisition of hospital properties and for general working capital purposes.

South Korea

New Songdo City DevelopmentÆs W2.5 trillion multi-tranche fundraising has been launched into senior and general syndication simultaneously via sole mandated lead arranger and bookrunner Shinhan Bank.

The loan is split into a W1 trillion term loan æAÆ, a W750 billion term loan æBÆ, a W670 brillion term loan æCÆ and a W80 billion revolver. All the tranches carry a tenor of seven years and margins are priced at 170bp over the three-month certificate of deposit (CD) rate.

In senior syndication, banks are being primarily invited by the bookrunner as coordinating arrangers.

In general syndication, banks can participate in three different tiers. Those contributing W300 brillion or above earn a 100bp management fee as lead arranger, commitments of W100 billion to W290 billion receive 70bp as co-arrangers and those providing W50 billion to W90 billion gain an upfront fee of 50bp.

Commitments are due in by the end of August and signing is slated for the end of September.

Proceeds are to fund a 10-year real estate development project. Term loan æAÆ is to refinance an existing debt facility signed in 2005, term loan æBÆ is to finance the operating and construction costs and land acquisitions will be funded via term loan æCÆ.
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