loan-week-august-31september-6

Loan Week, August 31-September 6

A roundup of the latest syndicated loan market news.
Australia

Babcock & Brown Power SPVs BBI PipeCat and BBI PowerCatÆs, A$2.1 billion dual tranche financing has been completed via sole lead arranger Commonwealth Bank of Australia.

The loan comprises a A$1.6 billion one year limited recourse facility, tranche æAÆ and a separate A$518 million one year credit, tranche æBÆ.

Tranche æAÆ saw Commonwealth Bank, ANZ, BNP Paribas and Dexia Bank each provide A$395.3 million while tranche æBÆ saw the same banks holding A$129.5 million apiece.

Proceeds are to support Babcock & Brown Infrastructure, Babcock & Brown Power, Babcock & Brown Wind Partners and Singapore PowerÆs acquisition of energy infrastructure group Alinta.

FOXTEL ManagementÆs A$740 million five year credit was completed on September 3 via mandated arrangers ABN AMRO (Australia Branch), ANZ, Commonwealth Bank of Australia, nabCapital, Toronto Dominion (Australia Branch) and Suncorp-Metway. ABN AMRO was the sole bookrunner.

The bullet facility saw the mandated arrangers contribute A$100 million apiece with participants Sumitomo Mitsui Banking Corp and Citi holding onto A$75 million and A$65 million respectively.

Funds are to refinance an existing debt facility.

Hong Kong

CEC International HoldingsÆ HK$300 million credit has closed oversubscribed via sole lead arranger Standard Chartered. The facility was upsized from HK$230 million.

Final allocations saw Standard Chartered provide HK$60 million. Arrangers United Overseas Bank committed HK$45 million while Fubon Financial Holdings held HK$40 million. Lead managers China Construction Bank, Citic Ka Wah Bank and Oversea-Chinese Banking Corp took HK$30 million each while manager KBC Bank lent HK$25 million. Mizuho Corporate Bank and Wing Hang Bank ended up with HK$20 million each.

The funds are to refinance an existing deal signed in April 2005. Coils Electronics is the guarantor.

The signing ceremony is slated for mid-September.

A HK$6.5 billion seven year revolver for HH Finance, a SPV of Hopewell Holdings has had general syndication extended until next week as more banks are waiting for approvals. The facility is being led via a group of 13 mandated arrangers û Agricultural Bank of China, Bank of China (Hong Kong) Bank of Communications, BNP Paribas, Calyon, China Construction Bank, China Merchants Bank, Citi, DBS Bank, ICBC Asia, Mizuho Corporate Bank, Nanyang Commercial Bank and Sumitomo Mitsui Banking Corp.

The loan offers a spread of 32bp over Hibor. So far, around six commitments have been received.

Proceeds are to refinance an existing HK$5.35 billion fundraising signed in June 2006. Hopewell Holdings is the guarantor.

Mandarin Oriental (Hong Kong) and Excelsior HotelÆs HK$3.5 billion seven year dual-tranche facility was signed oversubscribed on September 4 via mandated lead arrangers Banco Bilbao Vizcaya Argentaria (Hong Kong Branch), Bank of Communications (Hong Kong Branch), Bank of Tokyo-Mitsubishi UFJ, BNP Paribas (Hong Kong Branch), HSBC, Industrial & Commercial Bank of China (Asia) and Standard Chartered Bank (Hong Kong Branch). The original mandated arrangers were Bank of Tokyo-Mitsubishi UFJ, BNP Paribas (Hong Kong Branch), HSBC and Standard Chartered Bank (Hong Kong Branch). The loan was upsized from HK$3 billion due to an enthusiastic response from the market.

The financing is divided into a HK$2.33 billion term loan and a HK$1.17 billion revolver, featuring a margin of 28bp over Hibor.

Final allocations saw the mandated lead arrangers Bank of Tokyo-Mitsubishi UFJ and HSBC contributing HK$350 million apiece, while BNP Paribas (Hong Kong Branch) and Standard Chartered Bank (Hong Kong Branch) provided HK$250 million each. Industrial & Commercial Bank of China (Asia) took HK$240 million while Banco Bilbao Vizcaya Argentaria (Hong Kong Branch) and Bank of Communications (Hong Kong Branch) held HK$215 million apiece.

Coming in as arrangers were Hang Seng Bank and Shanghai Commercial Bank providing HK$195 million each. China Construction Bank Corp (Hong Kong Branch), Chong Hing Bank, Mizuho Corporate Bank, Sumitomo Mitsui Banking Corp and Tai Fung Bank committed HK$155 million apiece.

Senior managers Nanyang Commercial Bank gave HK$125 million while Bank of China (Hong Kong), Bank of East Asia, Oversea-Chinese Banking Corp (Hong Kong Branch) and Wing Lung Bank took HK$85 million each.

Proceeds are to refinance an existing facility signed in August 2001.

Mass Transit Railway Corp (MTRC)Æs HK$10 billion dual-tranche loan was launched into general syndication on Wednesday (September 5) syndication via a consortium of 15 mandated lead arrangers. The banks were Bank of China, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Calyon, China Development Bank, Citi, Fortis, Hang Seng Bank, HSBC, ICBC, ING Bank, Mizuho Corporate Bank, Rabobank, Standard Chartered Bank and Sumitomo Mitsui Banking Corp. Bank of China, Citi, HSBC and Standard Chartered Bank are also the bookrunners.

The fundraising is divided equally into a three year term loan, tranche æAÆ and a five year revolver, tranche æBÆ, with margins of 15bp and 19bp over Hibor respectively.

Fees to the market are on two tiers. Senior managers committing $300 million or above receive 12bp and 15bp in management fees for tranches æAÆ and æBÆ correspondingly. Those contributing $100 million to $299 million earn 9bp and 10bp as lead managers.

Proceeds are to support the merger of the two government-owned transport infrastructures, MTR and KCR. Banks have until September 24 to revert.

Swire PacificÆs HK$10 billion five year dual tranche facility was launched into senior syndication on September 3 via mandated arrangers Bank of China (Hong Kong), Calyon, HSBC, Standard Chartered (Hong Kong) and Sumitomo Mitsui Banking Corp.

The bullet facility is equally split into a term loan and a revolver, and features a spread of 25bp over Hibor.

In senior syndication, banks lending HK$1 billion or above receive 5bp over Hibor in underwriting fees and 25bp in management fees for an all-in of 31bp. There is also a take and hold option of HK$750 million where participating banks gain 25bp for an all-in of 30bp.

Banks joining at the senior level are expected to revert by September 18, with general syndication to follow soon after.
Proceeds are for general corporate purposes and for refinancing existing debt.
India

Alok IndustriesÆ $90 million five year term loan was signed on August 31 via a syndicate of 11 banks. The deal was oversubscribed due to a strong market response, and was increased from $75 million.

Allocations saw mandated lead arrangers Axis Bank, Barclays Capital and State Bank of India commit $13.5 million apiece while Bank of India took $12.5 million. Arrangers SBI International (Mauritius) and State Bank of India (Canada) each held $10 million. Krung Thai Bank came in as co-arranger with a hold of $5 million while lead managers Chang Hwa Commercial Bank, DBS Bank, Mega International Commercial Bank and Taiwan Business Bank ended up with $3 million apiece.

Bhushan Steel & StripsÆ $150 million five year fundraising was inked on September 3 via a consortium of 14 banks. Barclays Capital and State Bank of India were the original mandated arrangers.

Joining in with holds of $11 million each were Barclays Capital, Chinatrust Commercial Bank. Deutsche Bank, Bank of India, State Bank of India, UTI Bank, Bank of Baroda, United Overseas Bank and UniCredit Bank. Shinhan Bank and Syndicate Bank held $10 million apiece while Punjab National Bank took $6 million. Allahabad Bank, Bank Negara Indonesia (Persero), Krung Thai Bank and SBI International (Mauritius) lent $5 million each. Bank of Taiwan took $3 million while Hua Nan Commercial Bank ended up with $2 million.

A $1.5 billion yen-equivalent multi-tranche landmark financing for ICICI Bank was completed on Tuesday (September 4) via a syndicate of 10 mandated arrangers - BayernLB, BNP Paribas, Calyon, Commerzbank, Goldman Sachs, HSBC, Intesa Sanpaolo, Natixis, Standard Chartered Bank and Sumitomo Mitsui Banking Corp. All banks are acting as bookrunners with the exception of Intesa Sanpaolo. This is IndiaÆs largest-ever offshore syndicated loan facility by a financial institution.

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

Final allocations saw the mandated arrangers contribute $124.7 million apiece. Lead arrangers Samba Financial Group and Woori Bank (Hong Kong Branch) provided $30 million each with First Commercial Bank (Hong Kong Branch) giving $25 million.

Coming in as co-arrangers committing $20 million apiece were DBS Bank, Saudi National Commercial Bank and WGZ Bank. Lead managers Banco Nacional Ultramarino took $15 million with eight others û Bank Austria Creditanstalt, Bank of Montreal, BankMuscat, Export-Import Bank of Republic of China, Lloyds TSB Bank, Mega International Commercial Bank (Offshore Banking Branch), Taiwan Shin Kong Commercial Bank (Offshore Banking Branch) and Zurcher Kantonalbank holding $10 million each. Rounding out the syndicate were EMRO Finance Ireland and Shanghai Commercial & Savings Bank (Offshore Banking Branch) taking $5 million apiece with Toronto Dominion (South East Asia) contributing $3 million.

Proceeds are for general corporate purposes.

Suzlon EnergyÆs Ç1.08 billion multi-tranche financing is signing today (September 7) via a consortium of 24 banks.

The deal comprises a Ç375 million 10 month term loan, a Ç325 million 18 month credit, a Ç300 million loan and an Ç80 million 10 month portion.

Proceeds are for general corporate purposes.

A $35 million five year credit for Usha Martin has been launched into general syndication via sole lead arranger ICICI Bank.

Banks have been invited on three tiers. Mandated lead arrangers lending $10 million and above receive an upfront fee of 100bp for an all- in of 160bp over Libor. Those committing between $5 million and $10 million receive 90bp in fees for an all-in of 158bp and the title of senior lead arranger. Lead arrangers providing between $2 million and $4 million gain 80bp for an all-in of 156bp.

The loan features a spread of 140bp over Libor. Banks have until September 21 to respond.

Indonesia

Syndication of Pamapersada NusantaraÆs $350 million financing is still going strong, with the facility already oversubscribed. DBS Bank, HSBC, Mizuho Corporate Bank, Standard Chartered, Sumitomo Mitsui Banking Corp and United Overseas Bank are leading the facility.

The facility comprises a $240 million five year term loan and a $110 million three year revolver.

Banks have been invited on three levels. Lead arrangers lending $20 million or above receive 57.3bp in management fees while arrangers committing between $10 million to $19 million gain 52.5bp. Lead managers providing between $5 million and $9 million get 47.5bp.

Banks are still awaiting approvals from their respective credit committees, with the deadline slated for the end of this week. Signing is targeted to take place at the end of September.

Japan

A Ñ200 billion three year, nine month term loan for Mosso Finance was signed on August 28 via a consortium of 15 mandated lead arrangers û Aozora Bank, Bank of Tokyo-Mitsubishi UFJ, Bank of Yokohama, BNP Paribas, Chuo Mitsui Trust & Banking, Citi, ING Bank, Mitsubishi UFJ Trust & Banking Corp, Mizuho Corporate Bank, Royal Bank of Scotland, Shinsei Bank, Shizuoka Bank, Sumitomo Mitsui Banking Corp, Sumitomo Trust & Banking and WestLB.
Aozora Bank, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Citi, Mizuho Corporate Bank, Shinsei Bank and Sumitomo Mitsui Banking Corp were the bookrunners.

Proceeds are to fund the purchase of convertible bonds issued by Fujitsu.

Macau

ANZ, Bank of America, Barclays, Deutsche Bank and UBS have restructured Melco PBL Entertainment (Macau)Æs $1.75 billion dual tranche facility. A $1 billion B-loan targeted at US investors has been cancelled.

The facility is now split into a $1.5 billion seven year term loan and a $250 million five year revolver. The restructured facility features a much higher margin of 275bp over Libor and 558bp over three-month Libor.

Syndication is going strong with banks expecting to revert by September 18.

Proceeds are to partly finance the City of Dreams project in MacauÆs Cotai Strip which is expected to be completed in 2009.

Philippines

A $1.08 billion 15 year fundraising for Crimson Power Holdings was completed on August 31 via mandated leads ANZ, Calyon, ING Bank, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp; with the exception of ANZ all the banks are also bookrunners.

The term loan pays a spread of 90bp over Libor.

Allocations saw ING Bank, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp taking $100 million apiece with ANZ and Calyon holding $75 million each. Senior lead arrangers Shinsei Bank and Sumitomo Trust & Banking committed $100 million apiece with Shinkin Central Bank and Royal bank of Scotland providing $95 million and $60 million respectively. Aozora Bank, Chuo Mitsui Trust and Banking and Mitsubishi UFJ Trust and Banking Corp contributed $75 million apiece while co-arranger Mizuho Trust Banking & Co ended up with $50 million.

Proceeds are to support Marubeni Corp and Tokyo Electric PowerÆs acquisition of Mirant CorpÆs assets.
Singapore

ASL ShipyardÆs $66 million multi-tranche credit was signed oversubscribed on August 31 via mandated arrangers and bookrunners BNP Paribas and Oversea-Chinese Banking Corp.

The fundraising is split into a $56.85 million 27-month refundment guarantee, a $6.1m 27-month performance bond and a $3.05 million 13-month warranty bond.

Final allocations saw Bangkok Bank, Natixis and Sumitomo Mitsui Banking Corp joining in as equal-status arrangers; each committing the same amount as the bookrunners of $12.2 million apiece. Coming in as lead arranger was VTB Bank holding onto $5 million.

Proceeds are to fund the construction of a vessel.

Aspial-Lee Hwa Jewellery SingaporeÆs S$40 million four year dual tranche fundraising was signed on September 5 on a club basis. The facility is split equally into a term loan and a revolving credit that pays a spread of 165bp and 140bp respectively.

Final allocations saw United Overseas Bank hold S$9.5 million with Oversea-Chinese Banking Corp and Standard Chartered each providing S$8.75 million. Citi and HSBC ended up with S$6.5 million apiece.

South Korea

Doosan InfracoreÆs $4 billion multi-tranche leveraged buy-out facility was launched into general syndication on August 31 via sole mandated arranger and bookrunner Korea Development Bank.

The financing is split into a $3 billion three tranche facility borrowed under a SPV, HoldCo, and a $1 billion dual tranche fundraising borrowed via Doosan Infracore and Doosan Engine.

The $3 billion credit is comprises a $300m five year revolver, tranche æAÆ, a $1.2 billion five year bullet loan, tranche æBÆ and a $1.5 billion seven year facility, ætranche CÆ. The deal offers a spread of 235bp over Libor for tranches æAÆ and æBÆ and 305bp over Libor for tranche æCÆ.

The remaining $1 billion loan consists of a $700 million portion and a $300 million tranche both with tenors of seven years and a grace period of three years. Margins are priced at 160bp over Libor for the two tranches.

Banks are being invited to join on four different tiers. Those providing $500 million or above earn a 100bp management fee as arranger, contributions of $300 million to $499 million receive 85bp as co-arrangers, commitments of $100 million to $299 million take 65bp flat as senior managers and managers providing $50 million to $99 million gain 40bp.

Proceeds are to support the acquisition of the construction equipment unit, Bobcat, from Ingersoll-Rand. Commitments are due by September 21.

Korea Development Bank provided a $79 million five year fundraising for Kumho Tire on August 28 as on a bilateral basis.

Proceeds are for general corporate purposes for the production plants located in Tianjin and Nanjing.

Taiwan

Chinatrust Commercial Bank has arranged a NT$1.025 billion three year multi-tranche fundraising for Sunland Real Estate.

The deal is split into a NT$332.5 million bullet loan, a NT$142.5 million portion and a NT$550 million term loan, each paying a spread of 145bp over the secondary CP rate.

Final Allocations saw Chinatrust Commercial Bank commit NT$410 million while Bank of Panhsin and Taiwan Business Bank took NT$307.5 million each.
¬ Haymarket Media Limited. All rights reserved.