loan-week-august-28september-3

Loan week, August 28-September 3

A roundup of the latest syndicated loan market news.

Australia

Goodman Fielder's A$500 million forward start facility was launched on August 27 via bookrunners ANZ and National Australia Bank.

The three-year term loan pays a spread tied to a leverage grid. The margin starts at 340bp over BBSY if the leverage ratio is between 2.75 and 3 times; steps up to 370bp if the ratio is over 3 times; and steps down to 260bp when the leverage falls below 2.75 times. 

Banks are invited to join on four tiers - mandated lead arrangers lending A$75 million or above receive 100bp in upfront fees, while co-arrangers providing A$51 million to $74 million get 75bp. Lead managers offering between A$25 million and A$50 million earn 50bp.

Proceeds are to refinance a A$700 million debt signed in 2005 that is due to mature in October 2010. Bank responses are due by the end of September.

ING Management, on behalf of ING Industrial Fund, successfully secured a A$1.6 billion term loan on August 27 from mandated lead arrangers ANZ, Commonwealth Bank of Australia, Mizuho Corporate Bank and Westpac.

Syndication saw Bank of Nova Scotia, Citi, Deutsche Bank, ING, J.P. Morgan, Oversea-Chinese Banking Corp, Toronto Dominion Bank and United Overseas Bank joining as participants.

Proceeds are to refinance A$1.5 billion and A$325 million three-year revolving credits signed in December 2007 and April 2008 respectively.

China

A Rmb1.7 billion fund-raising for Shanghai Xin Zhao Realty Development was signed last week via sole mandated lead arranger and bookrunner DBS.

The five-year term loan is priced at 100% of the PBOC rate.

Final allocations saw the lead taking Rmb280 million, while participant Agricultural Bank of China lent Rmb800 million. Bank of Communications lent Rmb220 million, United Overseas Bank Rmb200 million and First Sino Bank Rmb150 million. Oversea-Chinese Banking Corp rounded off the syndicate with a Rmb50 million ticket.

Proceeds are for refinancing, general corporate purposes and to part-finance outstanding and future construction and renovation expenses. 

Sino-Ocean Land Holdings' $700 million three-year term loan was upsized from $300 million and signed on September 2 via mandated lead arrangers Bank of China (Hong Kong) and China Construction Bank.

The deal features a margin of 210bp over Libor and a grace period of one year. Proceeds are to refinance a $215 million syndicated facility signed in August 2008.

Hong Kong

A A$510 million refinancing facility for Cheung Kong Infrastructure Finance (Australia) has been inked via mandated lead arrangers and bookrunners ANZ and Bank of China (Hong Kong).

Final allocations saw ANZ commit A$170 million, while Bank of China (Hong Kong) lent A$176 million. Bank of China (Macau) gave A$124 million and Nanyang Commercial Bank provided A$40 million.

Proceeds are to refinance an existing loan signed in 2004 and for general corporate purposes.

Spark Country's HK$780 million three-year debt package has been signed on a club basis via mandated lead arrangers Bank of East Asia, DBS and Wing Lung Bank.

The deal pays a spread of 110bp over Hibor and the lead arrangers contributed HK$260 million apiece.

Proceeds are for refinancing and general corporate purposes.

India

An Rs8.8 billion 15-year infrastructure facility for L&T Rajkot Vadinar Tollway was completed om August 27 via sole mandated lead arranger Standard Chartered Bank. Andhra Bank, Bank of India, Dena Bank, India Infrastructure Finance, Indian Bank, Karur Vysya Bank, Syndicate Bank and UCO Bank came in as participants.

Proceeds are to support a highway widening project in Gujarat, India.

Singapore

Olam International's $540 million dual-tranche transferrable facility was fully underwritten by mandated lead arrangers and bookrunners Bank of Baroda, BNP Paribas, Credit Suisse, DBS, HSBC, ING, J.P. Morgan, Natixis and Standard Chartered Bank.

The financing comprises a $324 million three-year term loan and a $216 million five-year term loans.

Syndication launch is expected in September and proceeds are for refinancing, working capital and general corporate purposes.

Meanwhile, another $100 million one-year Islamic loan for the borrower has been put together by bookrunner Islamic Bank of Asia. Bank of Tokyo-Mitsubishi UFJ, CIMB Bank and OCBC Al-Amin Bank participated as joint lead arrangers, while Qatar National Bank joined as a lead arranger.

Proceeds are for trade financing purposes.

Syndication of Sabre Energy Industries' S$2.3 billion financing was closed this month via sole bookrunner DBS. Signing is expected to take place towards the end of the month. The deal was funded and drawn in early March this year.

The three-year term loan is priced at 250bp over SOR and features a commitment fee of 40bp. A S$350 million portion out of the initial amount will be repaid this month, while the remaining S$1.9 billion portion was syndicated.

Final allocations saw the lead commit S$1.1 billion, while equal-status lead arrangers Maybank, Oversea-Chinese Banking Corp and Calyon took S$185 million, S$160 million and S$125 million respectively. Bank of Tokyo-Mitsubishi UFJ and Sumitomo Mitsui Banking Corp each provided S$105 million, and Natixis and National Australia Bank came in with S$70 million and S$60 million apiece.

Proceeds are to support a S$3.6 billion acquisition of PowerSeraya by YTL Power International.

Taiwan

B & Q International (Taiwan)'s NT$2.2 billion financing was sealed last week via coordinating arrangers Land Bank of Taiwan and Taiwan Business Bank. The facility was oversubscribed and upsized from NT$1.8 billion.

Guaranteed by the parent - Testrite Group - the five-year revolving credit is priced at 100bp over the 90-day or 180-day secondary CP rate and offers a commitment fee of 10bp.

Final allocations saw the leads contribute NT$470 million each, while participant Hua Nan Commercial Bank joined in with NT$300 million. Agricultural Bank of Taiwan, Chang Hwa Commercial Bank, Taichung Commercial Bank and Taiwan Cooperative Bank came in with NT$230 million apiece.

Proceeds are for working capital purposes.

Eva Airways Corp inked two aircraft financings last week - a NT$6 billion 12-year term loan borrowed through Eva Airways Corp and a $180 million 12-year term loan borrowed under its Samoa-incorporated subsidiary Octostar B777-09, both via bookrunners and mandated lead arrangers Chang Hwa Commercial Bank, EnTie Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank, Taichung Commercial Bank and Taiwan Cooperative Bank.

On the Taiwan dollar transaction, pricing is tied to EVA Airways Corp's net-profit-before-tax ratio and its debt-to-equity ratio as follows: the initial pricing is 100bp over the 90-day secondary CP rate with an interest rate floor of 2.3%; if the net-profit-before-tax ratio is higher than 1% and the debt-to-equity ratio is lower than 3.5 times, the margin falls to 90bp with an interest rate floor of 2.15%; if the net-profit-before-tax ratio is higher than 2% and the debt-to-equity ratio is lower than three times, the spread lowers to 70bp with an interest rate floor of 2%.

On the US dollar facility, pricing is tied to EVA Airways Corp's net-profit-before-tax ratio and debt-to-equity ratio as follows: the initial pricing is 135bp over three-month Libor or three-month TAIFX3 with an interest rate floor of 2.3%, whichever is higher; if the net-profit-before-tax ratio is higher than 1% and the debt-to-equity ratio is lower than 3.5 times, the margin falls to 110bp over three-month Libor or 85bp over three-month TAIFX3 with an interest rate floor of 2.15%, whichever is higher; if the net-profit-before-tax ratio is higher than 2% and the debt-to-equity ratio is lower than three times, the margin falls to 90bp over three-month Libor or 65bp over three-month TAIFX3 with an interest rate floor of 2%, whichever is higher.

Final allocations saw First Commercial Bank lend NT$700 million and $43 million, while EnTie Commercial Bank and Taichung Commercial Bank pledged NT$800 million and $10 million each. Chang Hwa Commercial Bank, Hua Nan Commercial Bank and Taiwan Cooperative Bank provided NT$600 million and $20 million apiece. Participants Land Bank of Taiwan came in with NT$500 million and $15 million, while Cathay Life Insurance and E.Sun Commercial Bank took NT$400 million and $12 million each. Yuanta Commercial Bank and the Export-Import Bank of the Republic of China gave NT$300 million and $9 million apiece.

Proceeds are for the purchase of two aircraft.

Froch Enterprise's NT$2.5 billion fundraising has been completed via bookrunners E.Sun Commercial Bank and Land Bank of Taiwan.

The debt package is split into two seven-year term loans of NT$340 million and NT$1.0 billion each and a NT$1.2 billion five-year revolving credit. The minimum interest rate for this deal is 2%.

Allocations saw the bookrunners Land Bank of Taiwan committing NT$800 million while E.Sun Commercial Bank lent NT$610 million. Participants Agricultural Bank of Taiwan gave NT$380 million, while Chang Hwa Commercial Bank took NT$300 million. Taichung Commercial Bank held NT$230 million and Hua Nan Commercial Bank ended up with NT$180 million.

Proceeds are to finance land acquisitions, machinery purchases and factory construction, as well as for refinancing and working capital purposes.

A NT$600 million three-year credit for Gintech Energy Corp has been completed as a club deal via mandated lead arrangers First Commercial Bank and Land Bank of Taiwan.

The three-year revolver offers a spread of 140bp over the 90-day secondary CP rate with a minimum interest rate of 2.2% after tax throughout the deal's tenor and a commitment fee of 10bp.

Final allocation saw the two leads take NT$300 million apiece.

Proceeds are for working capital purposes.

Great Smart's $60 million transaction was signed on August 31 via seven coordinating arrangers led by Taishin International Bank.

Guaranteed by the parent - Goldsun Development & Construction - the facility comprises a $37 million term loan and a $23 million revolving credit that pays a margin of 115bp over Libor. The interest rate floor is 2%.

Final allocations saw one of the leads, Taishin International Bank, lend $9 million, while Cathay United Bank, Chinatrust Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank and Taipei Fubon Commercial Bank contributed $7.5 million apiece. Taiwan Business Bank pledged $5.7 million, while lead managers Shanghai Commercial & Savings Bank and Yuanta Commercial Bank gave $3.9 million each.

Proceeds are for refinancing and working capital purposes.

Thailand

A Bt2.5 billion loan for Sri Trang Agro-Industry was signed on September 1 through sole mandated lead arranger and bookrunner Kasikornbank.

The lead provided Bt1 billion, while syndication saw Bank of Ayudhya and Government Savings Bank join in as participants with Bt800 million and Bt700 million respectively.

Proceeds are for expansion and general corporate purposes.

¬ Haymarket Media Limited. All rights reserved.

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