loan-week-august-18--august-24

Loan Week, August 18 - August 24

A round up of the latest syndicated loan market news.
China

San Miguel (Guangdong) Foods and Beverages has successfully raised Rmb235 million via four banks. Mandated arrangers Standard Chartered Bank committed Rmb45 and million, Bank of China (Foshan), Bank of Tokyo-Mitsubishi UFJ (Shenzhen) and Mizuho Corporate Bank (Shenzhen) joined with tickets of Rmb65 million apiece.

Allocations for Zhenjiang Union Chemical Industry and Zhuhai Unicizer IndustrialÆs $100 million renminbi equivalent revolving credit have been finalised. Mandated lead arrangers BNP Paribas and Mizuho Corporate Bank (Shanghai) saw nine banks join in general syndication.

The mandated lead arrangers ended up with holds of $13.8 million each. Lead arrangers are Industrial & Commercial Bank of China and Bank of Communications taking $13.8 million and $12 million respectively. Co-arrangers are Agricultural Bank of China holding $9 million while four others û Bank of China, Hang Seng Bank, KBC Bank (Shenzhen) and United Overseas Bank û joined with commitments of $7.5 million apiece. Lead managers are Nanyang Commercial Bank (Shenzhen) and SMBC (Shanghai) absorbing $3.8 million each.

Signing is targeted for August 30.


Hong Kong

Allocations have been finalised for Hong Kong ElectricÆs HK$5 billion fundraising, was decreased from HK$6.65 billion. The deal offers a spread of 25bp over Hibor with a commitment fee of 12.5bp. Signing is scheduled for September 1.

The mandated co-ordinating arrangers are Bank of Tokyo-Mitsubishi UFJ, Calyon and HSBC committing HK$780 million each, Mizuho Corporate Bank taking HK$660 million, Bank of China (Hong Kong) contributing HK$500 million while co-ordinating arrangers are Fortis and Westpac holding HK$500 million apiece. Joining as an arranger is Commonwealth Bank of Australia joined as an arranger lending HK$300 million while senior managers include BBVA and Tai Fung Bank with commitments of HK$100 million each. Proceeds are for general corporate purposes.

Hutchison Whampoa has hired a consortium of 12 banks to arrange its HK$9 billion facility. The arranger group comprises Bank of China (Hong Kong), Bank of Tokyo-Mitsubishi UFJ, Calyon, DBS Bank, Hang Seng Bank, HSBC, ICBC Asia, Mizuho Corporate Bank, Royal Bank of Scotland, Standard Chartered, SMBC and WestLB.

All the mandated arrangers are running the books while Mizuho Corporate Bank is the documentation and facility agent. The five year facility will be used to refinance existing debt that will mature in early 2007. A wider syndication is expected to be launched today (Friday).

Syndication of K Wah Stones HoldingsÆ HK$1.5 billion facility has yet to close with six banks said to be in the final stages of getting credit approvals. Thus far, the dual-tranche facility has secured commitments from at least seven banks. Proceeds will be used for working capital purposes.

Sole mandated lead arranger and bookrunner Bank of China (Hong Kong) has launched Nine Dragon PaperÆs $350 million facility into general syndication. The four year loan will be used to fund the purchase of machinery and equipment. A site visit was held in Dongguan on Thursday (August 23).

Market talk is that PCCW-HKT Telephone is tapping the market to borrow HK$8 billion. The borrower last came to the market when its parent company, PCCW raised HK$6.45 billion via a consortium of 17 banks in August 2006. That four year facility was priced at 46bp over Hibor and proceeds were for general corporate purposes.
Speed Win has signed a HK$400 million 3.5 year term loan. Mandated arrangers Standard Chartered Bank (Hong Kong) and Bank of East Asia ended up with commitments of HK$200 million apiece.

The transaction offers a margin of 40bp over Hibor. Proceeds are to finance the development of a project in Tai Kok Tsui. Chinese Estates Holdings is providing a guarantee.


India

Rumor has it that z is tapping the market to fund the acquisition of Swiss research-based company Cabbogen Amcis worth $75m.

Matrix Laboratories has successfully raised Ç165 million via a dual-tranche fundraising via 14 banks. The facility is equally split between four year and seven month term loans. The deal is an amendment of an agreement that was signed in October 2005.

Mandated lead arrangers ABN AMRO (Singapore) provided Ç23.5 million and Rabobank (Singapore) committed Ç20 million. Joining as arrangers are Fortis Bank (Belgium) and ING Bank (Belgium) holding Ç18 million apiece while lead managers Banca di Roma (Singapore) pledged Ç17.5 million, Bumiputra-Commerce Bank (London) contributed Ç13 million, State Bank of India (Antwerp) lent Ç11 million, International Commercial Bank of China borrowed Ç9 million, Bank of Baroda (London) held Ç8.8 million, Chang Hwa Commercial Bank (London) and Chiao Tung Bank (Singapore) loaned Ç8 apiece, First Commercial Bank (Singapore) took Ç5million, and Indian Bank (Singapore) and Bank of Baroda (Ras Al Khaimah) joined with tickets of Ç3 million and Ç2.2 million each.

A consortium of 14 banks has launched Reliance PetroleumÆs $1.5 billion dual-tranche project financing into syndication. The mandated lead arrangers are ABN Amro, Banc of America Securities Asia, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Calyon, Citigroup, DBS Bank, DZ Bank, HSBC, ICICI Bank, Mizuho Corporate Bank, Standard Chartered, State Bank of India and SMBC.

The loan is split between a $950 million 7.5 year tranche æAÆ which pays a spread of 80bp over Libor and a $550 million 10 year tranche æBÆ that carries a margin of 85bp over Libor.

Banks are being invited to join in both senior and general syndication. In sub-underwriting, mandated lead arrangers lending $100 million or above receive an underwriting fee of 15bp and a participation fee of 70bp over Libor while lead arrangers providing $75 million or above get 10bp and 65bp over Libor respectively. In general syndication, lead arrangers taking $50 million or above earn 65bp; arrangers committing $30 million to $49 million get 50bp while lead managers pledging $15 million to $29 million receive 35bp over Libor.

Among the 14 arrangers, ABN Amro, Banc of America Securities Asia, Bank of Tokyo-Mitsubishi UFJ, Calyon, Citigroup, HSBC, ICICI Bank, State Bank of India and Standard Chartered are the bookrunners.

Deadlines for sub-underwriting and general syndication are September 18 and September 25 respectively.

The $750 million financing for Tata Steel has been launched into general syndication via nine mandated lead arrangers. The arranger group comprises ABN Amro, Bank of Tokyo-Mitsubishi UFJ, Calyon, Citigroup, First Commercial Bank, Maybank, Mizuho Corporate Bank, Standard Chartered and SMBC.

The seven year deal offers a spread of 34bp over Libor and is being marketed on three tiers. Lead arrangers providing $25 million or above receive 108bp leading to a top level all-in of 52bp over Libor; co-arrangers taking $15 million to $24 million get 102bp for an all-in of 51bp over Libor while senior managers pledging $5 million to $14 million earn 96bp for an all-in of 50bp over Libor.

ABN Amro, Calyon, Citigroup and Standard Chartered are running the books. Proceeds will be used to fund expansion plans and for working capital purposes. A roadshow was held in Taipei on Thursday and banks have until September 15 to respond.
Malaysia

Optimal Olefins (Malaysia), Optimal Glycols (Malaysia) and Optimal Chemicals (Malaysia)Æs $327.5 million facility has been completed via sole mandated lead arranger HSBC. The financing saw 11 banks join in syndication. The facility is split into a $140 million term portion that will be borrowed by Optimal Olefins (Malaysia) and a $187.5 million term tranche that will be borrowed by both Optimal Glycols (Malaysia) and Optimal Chemicals (Malaysia).

Lenders include Maybank International, Bank of Tokyo-Mitsubishi UFJ (Labuan), RHB Bank, United Overseas Bank (Malaysia), OCBC Bank (Malaysia), Mizuho Corporate Bank, SMBC, DBS Bank (Labuan), Standard Chartered Offshore Labuan, Bank of East Asia (Labuan) and AmInternational.

Proceeds will be used to refinance existing debt and signing took place on August 21.


South Korea

National Agricultural Cooperative FederationÆs Ç200 million two year facility has been launched into general syndication via mandated lead arrangers ABN Amro, Barclays Capital, BayernLB, BNP Paribas, Banc of America Securities Asia, Calyon, DBS Bank. Standard Chartered and SMBC.

The two year loan carries a spread of 7bp over Euribor and banks have been invited to join on three levels. Lead arrangers holding Ç10 million or more get 10bp translating to a top level all-in of 12bp over Euribor; arrangers taking Ç5 million to Ç9 million receive 8bp for an all-in of 11bp while lead managers providing Ç2 million to Ç4 million earn 6bp for an all-in of 10bp.

Proceeds will be used for working capital purposes and financial close is targeted for early September.

Sole mandated lead arranger Korea Development Bank has launched SK ShippingÆs $278 million facility into general syndication. The financing comprises a $179 million pre-delivery three year tranche that is split into a $143.2 million tranche æAÆ and a $35.8 million tranche æBÆ; and a $278.2 million post-delivery 20 year tranche that consists of a $222.56 million tranche æAÆ and a $55.64 million tranche æBÆ.

Banks have been invited to participate on two tiers for the post-delivery tranche that is priced at 65bp and 127bp over Libor respectively. Co-arrangers taking $50 million or more receive 20bp over Libor while senior managers holdings $30 million or above get 15bp over Libor. There is also a commitment fee of 20bp.

Proceeds will be used to fund the purchase of two VLCCs to be built by Hyundai Heavy Industries that will be delivered in June and September 2009. Bank responses are due by September 12.
Taiwan

Alpha Beta Enterprise has launched a NT$950 million 10 year loan via sole mandated arranger International Commercial Bank of China. Proceeds are working capital requirements.

Elitegroup Computer SystemsÆ $100 million three year financing has closed on a club basis. A group of four banks are participating in the transaction.

The deal features a margin of 60bp over Libor. Mandated arranger International Commercial Bank of China lent $40 million, and First Commercial Bank, Shin Kong Commercial Bank and Taiwan Cooperative Bank provided $20 million apiece. Proceeds are for working capital purposes.

Hipro Oversea signed an $80 million three year revolver on August 18. Mandated arrangers E Sun Commercial Bank, First Commercial Bank, Ta Chong Bank and Taishin International Bank took $13 million each, Hua Nan Commercial Bank and SMBC held $10 million apiece and lead manager Far Eastern International Bank ended up with $8 million.

The facility carries a margin of 80bp over Sibor and a commitment fee of 15bp. Lead managers lending $10 million and over get 3bp. Proceeds are to refinance existing debt and to provide for working capital purposes.

Ocean Blue Construction CorpÆs NT$2.2 billion multi-tranche credit will be signed today (Friday) via mandated arrangers Cathay United Bank, International Commercial Bank of China and Union Bank of Taiwan.

The 3.5 year deal consists of NT$870 million, NT$130 million and NT$1.2 billion term loans. Mandated arrangers are Cathay United Bank, International Commercial Bank of China and Union Bank of Taiwan lending NT$380 million apiece while participants include EnTie Commercial Bank, Shanghai Commercial & Savings Bank, Shin Kong Commercial Bank and Taiwan Cooperative Bank taking NT$220 million each and First Commercial Bank with a ticket of NT$180 million. The facility offers a spread of 92bp over the savings deposit rate. Proceeds are for the purchase of land and for construction purposes.

Phihong Enterprise has signed a NT$1 billion dual-tranche facility via sole mandated arranger Taishin International Bank. Proceeds will be used to refinance existing debt and for working capital purposes.

The deal is split into a 3.5 year term loan and a revolver both featuring a margin of 90bp over the CP rate. There is a commitment fee of 25bp. Co-arrangers committing NT$200 million gets 6bp and co-lead arrangers providing NT$100 million to NT$199 million earn 4bp.

Sole mandated arranger Taishin International Bank contributed NT$200 million while lead managers Hsinchu International Bank and Taiwan Business Bank provided NT$130 million each and China Development Bank and Far Eastern International Bank took NT$95 million apiece. Managers include Hua Nan Commercial Bank, Hwa Tai Bank, International Commercial Bank of China, Land Bank of Taiwan, Shanghai Commercial & Savings Bank, Shin Kong Commercial Bank and Ta Chong Bank with holds of NT$50 million apiece.

Winstek SemiconductorÆs NT$3.6 billion fundraising was signed on August 18. A total of 15 banks are participating. Proceeds are to support the purchase of machinery and for working capital purposes.

Sole mandated arranger Taishin International Bank committed NT$390 million. Lead managers Bank of Overseas Chinese, Central Trust of China, Cathay United Bank and Shanghai Commercial & Savings Bank pledged NT$270 million each while Bank of Kaohsiung, Chang Hwa Commercial Bank, EnTie Commercial Bank, Far Eastern International Bank, Hsinchu International Bank, Land Bank of Taiwan, Shin Kong Commercial Bank, Sunny Bank, Taipei Fubon Commercial Bank and Taiwan Business Bank took NT$210 million apiece.

Yang An ElectronicsÆ NT$800 million financing is set to be signed today (Friday). A group of 12 banks are providing the funds.

Sole mandated arranger Taishin International Bank took NT$140 million while lead managers E Sun Commercial Bank and Fuhwa Bank contributed NT$80 million each, Bank of Kaohsiung, Bank of Panhsin, Central Trust of China, Chang Hwa Commercial Bank, Far Eastern International Bank and Shin Kong Commercial Bank committed NT$60 million apiece, Hua Nan Commercial Bank and Shanghai Commercial & Savings Bank joined with tickets of NT$50 million apiece and Hwa Tai Bank ended up with NT$40 million.

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