Loan week, August 8-12

A roundup of the latest syndicated loan market news.

Australia

A A$204 million three-year term loan for Hemmes Finance has been closed as a club deal via Commonwealth Bank of Australia and St George Bank. 

The leads contributed equally to the facility.

Proceeds are to refinance existing indebtedness.

Visy Packaging Properties’ A$400 million dual tranche term loan was signed last Wednesday (August 4) via bookrunners and mandated lead arrangers Commonwealth Bank of Australia and National Australia Bank.

The package comprises a A$300 million three-year tranche and a A$100 million four-year portion.

Syndication saw ANZ, HSBC and Westpac joining as participants. All banks contributed A$80 million apiece.

Proceeds are to refinance existing debt facilities.

Hong Kong

A HK$5 billion dual tranche financing for Kerry Holdings and Kerry Treasury has been signed via a consortium of nine mandated lead arrangers.

The five-year transaction is split into a HK$3.8 billion term loan and a HK$1.3 billion revolving credit.

Final allocations saw HSBC contributing HK$1.5 billion while Sumitomo Mitsui Banking Corp pledged HK$800 million. Bank of Tokyo-Mitsubishi UFJ, Credit Agricole, DBS Bank and Mizuho Corporate Bank gave HK$500 million each while ANZ took HK$400 million. Natixis committed HK$100 million while Wing Lung Bank came in with HK$240 million.

Proceeds are for refinancing and general corporate purposes.

India

An Rs8.3 billion six-year term loan for Century Textiles & Industries was completed last Thursday (August 5) via sole mandated lead arranger SBI Capital Markets.

Final allocations saw Union Bank of India pledge Rs2.3 billion while Bank of Baroda and IDBI Bank committed Rs2 billion apiece. Allahabad Bank and State Bank of Hyderabad gave Rs1 billion each.

Proceeds are for setting up new manufacturing plants.

A Rs72.7 billion multi-tranche facility for JSL has been inked via sole mandated lead arranger SBI Capital Markets.

The facility comprises four 10-year term loan tranches of Rs20.9 billion, Rs29 billion, Rs5 billion and Rs7.1 billion, and a Rs10.7 billion one-year renewable revolver.

Syndication saw 35 banks coming in as participants.

Proceeds are for refinancing and project expansion purposes.

Japan

Sumitomo Rubber Industries’ ¥2.2 billion five-year term loan has been signed via sole mandated lead arranger and bookrunner Credit Agricole CIB.

Syndication saw Hiroshima Bank and Hokuriku Bank joining in at lower tiers.

Proceeds are for general corporate purposes.

Macau

MGM Grand Paradise has successfully obtained a $950 million dual tranche financing via a consortium of 16 mandated lead arrangers.

Secured by legal charge over the project, the five-year facility comprises a $550 million term loan and a $400 million revolving credit.

Final allocations saw Bank of China (Macau) taking $180 million while ICBC (Macau) joined in with $150 million. Banco Nacional Ultramarino took $75 million while Bank of America Merrill Lynch held $69 million. Credit Agricole gave $58 million while Banco Comercial Portugues, BNP Paribas, Commerzbank and Royal Bank of Scotland pledged $50 million each. Tai Fung Bank contributed $39 million while JP Morgan, Morgan Stanley and Sumitomo Mitsui Banking Corp joined in with $33 million apiece. Banco Comercial de Macau committed $30 million and Bank of Nova lent $27 million. Deutsche Bank ended up with $25 million.

Proceeds are to refinance MGM Grand Macau’s existing $1.1 billion syndicated facilities and for general corporate purposes.

Malaysia

Enigma Harmoni has completed a MYR100 million six month term loan on a club basis via mandated lead arrangers CIMB Bank and Kuwait Finance House.

Proceeds are for working capital purposes.

Integrated Healthcare Holdings’ S$1.9 billion three-year acquisition financing was sealed as a club deal in early August via a consortium of eight mandated lead arrangers.

The bullet loan saw original mandated lead arrangers DBS Bank, OCBC Bank (Malaysia) and United Overseas Bank committing S$400 million each while mandated lead arrangers ANZ, BNP Paribas (Labuan) and HSBC contributed S$150 million apiece. CIMB Bank (Singapore) and Maybank ended up with S$100 million each.

The transaction is guaranteed by Khazanah Nasional. Proceeds are to partially fund Khazanah Nasional's acquisition of Singapore’s Parkway Holdings and to repay a S$1 billion loan borrowed in 2008.

South Korea

Oriental Brewery’s KRW1.5 trillion refinancing has been sealed via sole bookrunner and mandated lead arranger Korea Development Bank.

The transaction comprises a KRW1.4 trillion term loan and a KRW100 billion revolver.

Syndication saw a total of eight Korean financial institutions participating in the financing, which were – Hana Bank, Industrial Bank of Korea, Korea Exchange Bank, Korea Federation of Community Credit, Kookmin Bank, Shinhan Bank and Woori Bank.

Proceeds are to refinance the $913 million-equivalent acquisition financing that backed the KKR-led leveraged buyout of Oriental Brewery in 2009.

A $60 million two-year offshore loan-style FRN for Shinhan Card has been sealed on a club basis via mandated lead arrangers ANZ and DBS Bank.

Proceeds are for working capital purposes.

Taiwan

Asia Cement (China) Holdings’ $120 million five-year term loan has been launched via mandated lead Land Bank of Taiwan.

The loan is priced at 58bp over Libor.

Chang Hwa Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank, HSBC, Mega International Commercial Bank, Mizuho Corporate Bank, Shanghai Commercial & Savings Bank and Taipei Fubon Commercial Bank have committed to the deal so far.

Proceeds are for working capital purposes.

A NT$2.2 billion five-year term loan for Giantplus Technology has been signed via bookrunners Mega International Commercial Bank and Taipei Fubon Commercial Bank.

The facility is split into a NT$1 billion tranche and a NT$1.2 billion portion which feature a spread of 100bp and 110bp over the secondary CP rate respectively, with a 15bp commitment fee.

Bank Sinopac, Cathay United Bank, Chang Hwa Commercial Bank, E.Sun Commercial Bank, Hua Nan Commercial Bank and Land Bank of Taiwan joined in as participants.

Proceeds are for capital expenditure and working capital purposes.

Ta Ching Securities has obtained a NT$1.2 billion three-year revolving credit via mandated lead arrangers Cathay United Bank, Industrial Bank of Taiwan and Taiwan Cooperative Bank.

Guaranteed by its chairman, the revolver pays a spread of 70bp over the secondary CP rate.

Final allocations saw the leads taking NT$180 million each while Agricultural Bank of Taiwan, Bank of Taiwan, Shin Kong Commercial Bank and Taiwan Business Bank joined in as managers with NT$126 million apiece. Participants Far Eastern International Bank, Hua Nan Commercial Bank and Ta Chong Bank lent NT$52 million each.

Proceeds are for working capital purposes.

Yieh United Steel Corp’s NT$12 billion five-year refinancing is expected to be inked on August 20 via joint bookrunners Chang Hwa Commercial Bank, Hua Nan Commercial Bank, Land Bank of Taiwan, Mega International Commercial Bank, Taiwan Business Bank and Taiwan Cooperative Bank.

The refinancing comprises NT$7.3 billion and NT$4.7 billion term loans which offer a margin of 95bp and 105bp over the secondary CP rate.

Agricultural Bank of Taiwan, Bank of Kaohsiung, Bank of Taiwan, First Commercial Bank, Taichung Commercial Bank, Taishin International Bank and Taipei Fubon Commercial Bank joined in at lower tiers.

Proceeds are to refinance existing indebtedness.

Thailand

A 20-year multi-tranche dual currency fundraising for Amata B Grimm Power 3 has been sealed via sole mandated lead arranger Kasikornbank. Bangkok Bank joined in at a lower tier.

The deal consists of a Bt2.7 billion term loan, a $42 million financing, a Bt300 million credit facility and a Bt720 million portion.

Kasikornbank is the sole contributor to the Bt300 million facility, while the two banks gave equally in the other three tranches.

Proceeds are to finance a power plant project in Thailand.

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