Loan week, August 29-September 4

A roundup of the latest syndicated loan market news.

AMPCI Macquarie Infrastructure Management No 2's A$685 million three- and five-year multi-tranche facility was signed on August 28 on a club basis.

The secured bullet loan comprises a A$317.34 million three-year term loan, a A$267.66 million five-year term loan and a A$100 million three-year revolving credit.

Bank of Scotland provided A$100 million while Commonwealth Bank of Australia contributed A$82 million. Calyon, Natixis, Suncorp Metway and Westpac each committed A$75 million, while ANZ Investment Bank gave A$74 million. Barclays Capital and Societe Generale lent A$50 million apiece. National Australia Bank rounded out the group with A$29 million.

Proceeds are for refinancing purposes.

A $295 million 2.5-year term loan for Bank of Queensland was completed on August 28 via bookrunners ABN AMRO and Chinatrust Commercial Bank.

ABN AMRO, Chinatrust Commercial Bank, First Commercial Bank, Intesa Sanpaolo, Landesbank Baden-Wuerttemberg, Lloyds TSB Bank and Taiwan Cooperative Bank contributed $25 million apiece. Natixis gave $20 million, while Commerzbank lent $10 million. Bank of Kaohsiung, Export-Import Bank of Korea, Mega International Commercial Bank, Sunny Bank, Taiwan Business Bank and Taiwan Shin Kong Commercial Bank each committed $5 million. Shanghai Commercial Bank and Cathay United Bank took $3 million and $2 million respectively.

The transaction features a margin of 100bp over Libor and will be repaid on a bullet basis. Proceeds are for general corporate and working capital purposes.

BHP Billiton's $1.1 billion 130-day uncommitted renewable trade finance facility was launched into syndication last week via mandated lead arranger ABN AMRO.

Around a dozen of the borrowerÆs relationship banks have been approached and each is asked to commit a minimum of $100 million. The deadline to revert is at the end of next month, although there is a possibility of postponing the date by one to two weeks.

Proceeds from the secured loan are to fund shipments of materials such as coke and coal, which is being bought by BHPÆs client, ArcelorMittal.

Boral's $700 million three-year multi-currency fundraising has been sealed as a club deal.

Commonwealth Bank of Australia and National Australia Bank each gave $125 million, while Westpac, Sumitomo Mitsui Banking Corp and ANZ Investment Bank provided $110 million, $100 million and $80 million respectively. J.P. Morgan committed $63.8 million and Toronto Dominion Bank and Citi took $50 million and $46.2 million respectively.

Proceeds are for general corporate purposes


Syndication of FerroChina's $200 million three-year term loan is expected to close towards the end of the month. Credit Suisse is leading the deal, which is split between a $160 million tranche and a $40 million portion.

Proceeds will be used for refinancing and working capital purposes.

A $250 million three-year maiden loan for Inner Mongolia Huomei Hongjun Aluminium & Electricity, which has been upsized from $200 million, is expected to be signed within a fortnight.

Mandated arrangers and bookrunners Fortis and RBS contributed $32 million apiece, while equal status arrangers HSH Nordbank lent $29 million and Commerzbank, KBC Bank, Natixis and Rabobank provided $27 million each. Lead arranger Societe Generale took $21 million and arrangers Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp each pledged $14 million.

The amortising credit, which is priced at 250bp over Libor, will be used as a pre-financing for the purchase of raw materials such as aluminium.

Hong Kong

A $1.5 billion one-year club transaction for COSL Norwegian was inked on August 27 through mandated leads Bank of China, Calyon, HSBC, Standard Bank, Standard Chartered Bank and Sumitomo Mitsui Banking Corp.

The financing is guaranteed by COSL Singapore, the parent of the borrower. Proceeds are to partially finance the $2.5 billion acquisition of Awilco by COSL Norwegian.

Sino-Ocean Land Holdings' $215 million two-year term loan was signed on August 25 as a club deal.

Bank of China (Hong Kong) committed $65 million, Standard Chartered Bank (Hong Kong) $50 million and ICBC $40 million, while Bank of Communications (Hong Kong) and Bank of East Asia provided $30 million apiece.

The secured financing pays a spread of 225bp over Libor. Proceeds are to meet the borrowerÆs working capital requirements and to fund real estate development projects in mainland China.


The mandated arranger group on Hindalco Industries' $1 billion five-year financing is expected to be finalised by the end of this week after one or two more banks obtain approval to join ABN AMRO, Banc of America Securities Asia, Bank of Tokyo-Mitsubishi UFJ, Barclays Capital, Calyon, Citi, Deutsche Bank, HSBC, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp.

Upon getting a formal mandate, syndication could be launched as early as next week. The loan pays a spread of 275bp over Libor during the first year, which will increase to 309bp thereafter.

Proceeds are to take out an existing $3.1 billion bridge facility signed on May 11, 2007, for the acquisition of Novelis, a Canada-based producer of rolled aluminium products. A rights issue will be used to take out the rest of the bridge.

Reliance Industries' $1.2 billion multi-currency syndicated debt package was signed on August 29 and split into a $1 billion loan and a $200 million facility.

Final allocations on the $1 billion deal saw the 19 mandated lead arrangers û ABN AMRO, Banco Bilbao Vizcaya Argentaria, Bank of Nova Scotia, Bank of Tokyo-Mitsubishi UFJ, BayernLB, BNP Paribas, Calyon, Citi, DBS Bank, Fortis, HSBC, ING Bank, KfW Bank, Mashreqbank, Natixis, NordLB, Rabobank, Sumitomo Mitsui Banking Corp and WestLB û committing $40.25 million apiece.

Lead arrangers China Development Bank lent $40 million and Commonwealth Bank of Australia held $37.25 million. Lead managers Chinatrust Commercial Bank, DnB Nor Bank, Mega International Commercial Bank, Mizuho Corporate Bank and Norinchukin Bank each provided $20 million. Managers Bank of Taiwan took $17 million, while Bank of East Asia, First Commercial Bank and Qatar National Bank pledged $10 million apiece. Rounding up the group were co-managers E Sun Commercial Bank and Hua Nan Commercial Bank with contributions of $6 million and $5 million respectively.

Final allocations on the $200 million term loan saw mandated lead arrangers û ABN AMRO, Banco Bilbao Vizcaya Argentaria, Bank of Tokyo-Mitsubishi UFJ, BayernLB, BNP Paribas, Calyon, Citi, DBS Bank, HSBC, ING Bank, Natixis, Rabobank, Sumitomo Mitsui Banking Corp and WestLB û lend $12.2 million each. NordLB held $9.75 million and Bank of Nova Scotia and KfW Bank provided $9.7 million apiece.

The $1 billion 4.75-year deal for Vedanta Resources was signed last week. Mandated lead arrangers ABN AMRO, Bank of Baroda, Bank of Tokyo-Mitsubishi UFJ, Barclays Capital, Calyon, Citi, Mizuho Corporate Bank, Standard Chartered Bank, State Bank of India, Sumitomo Mitsui Banking Corp and WestLB each contributed $66.8 million while lead arrangers Natixis (Singapore) and Scotiabank committed $50 million apiece.

Arrangers BayernLB, DBS Bank and Intesa Sanpaolo lent $25 million each, while lead managers Indian Bank took $20 million and Chang Hwa Commercial Bank and Chinatrust Commercial Bank held $15 million apiece, China Construction Bank, First Gulf Bank and Taishin International Bank each pledged $10 million and Bank of East Asia and First Commercial Bank provided $5 million apiece.

A Rs1.5 billion six-month revolving credit for Vodafone Essar was completed in late August via sole mandated lead arranger and bookrunner Royal Bank of Scotland. Three financial institutions joined the deal, which is for general working purposes.


Venetian Macau's $5.25 billion-equivalent multi-tranche debt facility has been launched into the sub-underwriting phase through global coordinators and bookrunners Banco Nacional Ultramarino, Bank of China, Citi, Goldman Sachs, Lehman Brothers, Standard Chartered Bank, Sumitomo Mitsui Banking Corp and United Overseas Bank.

The five-year loan, which has a margin of 350bp over Libor and Hibor, is split into a $250 million revolver, a $4.25 billion senior secured amortising term loan and a $750 million delayed drawdown amortising term loan. The commitment fees on the revolver and delayed drawdown tranche are 125bp and 175bp respectively.

Banks are invited to join at four levels - $500 million tickets pay a global coordinator fee, an underwriting fee of 100bp and offer the titles of global coordinator, joint lead arranger and bookrunner, while $300 million holds pay an underwriting fee of 100bp and offer the titles of senior coordinator, joint lead arranger and bookrunner. Those committing $200 million earn an underwriting fee of 60bp and have the coordinator, joint lead arranger and bookrunner titles and $100 million contributions have an underwriting fee of 25bp and titles of joint lead arranger and bookrunner. There is also a management fee of 100bp for all levels.

Proceeds are to refinance a $3.3 billion loan signed in March 2007, for working capital purposes and to fund further projects on the Cotai Strip which include the Four Seasons Macau and other hotels with casinos.


Institute of Technical Education (ITE)'s $300 million 26.5-year amortising facility has been signed by a consortium of five banks on a club basis.

Coordinating arrangers Bank of Tokyo-Mitsubishi UFJ, Dexia Bank, DZ Bank, HSBC and Sumitomo Mitsui Banking Corp each contributed $60 million.

Proceeds are to fund the construction of ITEÆs 9.54 hectare College West campus.

South Korea

Mandated lead arrangers and bookrunners Bank of America, Banco Bilbao Vizcaya Argentaria, Calyon, DBS Bank, ING Bank and LBBW (Singapore) have launched a $200 million three-year offshore FRN-style loan for SK Energy.

The deal pays a spread of 180bp over Libor and will be used for working capital purposes.

Lead arrangers taking $20 million or above earn a management fee of 90bp and a top level all-in of 210bp. Arrangers holding between $10 million and $19 million receive 70bp and lead managers pledging $5 million to $9 million get 55bp.

Banks have until September 12 to send in their commitments.

Sri Lanka

Syndication of National Savings Bank's $50 million one-year term loan is still ongoing with Citi and State Bank of India acting as mandated arrangers.

The bullet facility has a margin of 140bp over Libor. The borrower will on-lend the funds to the government of Sri Lanka.

Banks have been invited to join at three levels. Tickets of $10 million or above pay an upfront fee of 120bp and offer the mandated lead arranger title, while $5 million to $9 million commitments garner 110bp with an arranger title and $2 million to $4 million holds pay 100bp with a senior manager title.

The deadline for responses is at the end of the month.


A NT$300 million three-year club deal for Bin Chuan Enterprise has been sealed via mandated lead arrangers Chinatrust Commercial Bank, E. Sun Commercial Bank, Mega International Commercial Bank, Shin Kong Commercial Bank and Taipei Fubon Commercial Bank. The leads each committed NT$60 million.

Secured by land and plant, the term loan pays a spread of 70bp over the 90-, 120- or 180-day secondary CP rate and has a commitment fee of 15bp. The repayment schedule will be in four semi-annual installments after an 18-month grace period.

Proceeds are to refinance an existing debt facility.

A NT$4 billion dual-tranche facility for Cheng Loong Corp was completed on August 25 via a group of eight coordinating arrangers and bookrunners û ABN AMRO, Cathay United Bank, Chang Hwa Commercial Bank, E. Sun Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank, Land Bank of Taiwan and Taipei Fubon Commercial Bank.

The bullet fundraising is divided into a NT$3.4 billion five-year term loan, which pays a spread of 48bp over the secondary CP rate, and a NT$600 million three-year guaranteed facility that features a margin of 55bp over the same base.

The leads contributed NT$400 million apiece, except for First Commercial Bank and ABN AMRO which committed NT$500 million and NT$300 million respectively. Co-arranger Taiwan Business Bank and managers China Bills Finance, International Bills Finance and Mega Bills Finance each held NT$200 million.

Proceeds are for working capital purposes.

Hwa Hsia International and HG Global HoldingÆs $38 million multi tranche fundraising was inked in late August via coordinating arrangers and bookrunners Chinatrust Commercial Bank, Ta Chong Bank and Taipei Fubon Commercial Bank.

The debt package is split into a $13 million three-year term loan, which is priced at 165bp, and $15 million and $10 million five-year term loans that pay a margin of 195bp over the same benchmark. The commitment fee for the term loans is 15bp.

The leads each committed $5 million while senior manager Cathay United Bank joined in with $4 million. Manager Mega International Commercial Bank, Taiwan Business Bank and Taiwan Shin Kong Commercial Bank contributed $3 million apiece with participants Bank of Panhsin, First Commercial Bank, Industrial Bank of Taiwan, Taiwan Cooperative Bank and Yuanta Commercial Bank lending $2 million each.

Proceeds are for refinancing and capital expenditure purposes.


PetroVietnam Drilling Investment's $150 million 6.5-year amortising credit was launched into general syndication last week via lead arrangers ABN AMRO, ANZ Investment Bank and HSBC. Roadshows were held in Taipei on September 4 and in Singapore on September 5.

The loan has an average life of four years and pays a spread of 300bp over Libor. It also enjoys a guarantee from PetroVietnam.

Mandated lead arrangers committing $15 million or above earn an upfront fee of 125bp and a top level all-in of 331.25bp. Arrangers lending $10 million to $14 million get 100bp and co-arrangers providing $5 million to $9 million receive 75.

Banks have until October 3 to revert. Proceeds will be used to finance a jack-up rig and to refinance a short-term facility that was used for the rig.
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