loan-week-august-814

Loan week, August 8-14

A roundup of the latest syndicated loan market news.
Australia

Sonic HealthcareÆs A$160 million three year revolving term loan was inked at the beginning of the month via mandated lead arrangers Commonwealth Bank of Australia and Westpac as a club deal.

Allocations saw the banks holding A$80 million apiece. The funds are for working capital purposes.

China

An $81 million-equivalent dual currency facility for SGIS Songshan has been completed via sole mandated arranger and bookrunner BNP Paribas.

The deal comprises a $41 million term loan, priced at 275bp over Libor and a RMB273 million portion paying a spread of 105% of the PBOC rate. Both tranches have a tenor of three years.

Final allocations in US dollar-equivalent saw BNP Paribas holding $10 million. Lead arrangers ANZ and Woori Bank contributed $9.88 million apiece while NordLB and Wing Hang Bank took $8.35 million and $7.15 million respectively. Coming in as arrangers were Bank of Nova Scotia, Korea Exchange Bank and Bangkok Bank providing $7.5 million, $5.65 million and $5 million correspondingly. Intesa Sanpaolo and United Overseas Bank committed $4.94 million apiece while Wing Lung Bank and Public Bank lent $4.91 million and $2.94 million respectively.

Proceeds are for general corporate purposes.

Shangdong Chenming PaperÆs $80 million three year refinancing has been launched into syndication via original mandated lead arranger Sumitomo Mitsui Banking Corp.

The term loan features a margin of 255bp over Libor and has a commitment fee of 25bp. Banks are welcome to participate on three levels. Mandated lead arrangers providing $15 million or above get an upfront fee of 160bp, while banks joining with $10 million to $14 million and $5 million to $9 million get 148bp and 135bp respectively. An extra early bird fee of 10bp will be granted to those banks that come in before August 25.

Banks will have until September 8 to revert.

Hong Kong

An $80 million three year term loan for Xiwang Sugar Holdings has been launched into the market by Bank of China (Hong Kong). The financing features an amortising repayment. Proceeds are for working capital and capital expenditure purposes.

India

Indian Overseas BankÆs $90 million three year financing is still in general syndication via mandated leads Bank of Tokyo-Mitsubishi UFJ, Calyon, HSBC, Intesa Sanpaolo, Natixis and Sumitomo-Mitsui Banking Corp.

The margin is priced at 110bp over Libor.

Banks are to revert by August 20. The signing date is slated for early September.

Reliance IndustriesÆ $1 billion five year term loan is in syndication and is expected to close soon. Mandated leads Nova Scotia and KfW bank joined the original mandated lead arrangers ABN AMRO, Banco Bilbao Vizcaya Argentaria, Bank of Tokyo-Mitsubishi UFJ, BayernLB, BNP Paribas, Calyon, Citi, DBS Bank, Fortis, HSBC, ING Bank, Mashreqbank, Natixis, NordLB, Rabobank, Sumitomo-Mitsui Banking Corp and WestLB. Commonwealth Bank of Australia and Qatar National Bank are participating in the deal at a lower level.

Tata ChemicalÆs $850 million five year dual tranche facility was closed last Thursday (August 7) through coordinating arrangers ABN AMRO, Bank of Nova Scotia, Calyon, HSBC, Mizuho Corporate Bank, Rabobank, Scotia Bank and Standard Chartered Bank.

The transaction comprises $500 million and $350 million term loans. Proceeds are to support acquisition activity.

Indonesia

A $300 million five year term loan for PT Saptaindra Sejati was signed on Wednesday (August 13) via 10 mandated leads on a club basis.

ANZ, Bank of Tokyo-Mitsubishi UFJ, Calyon, DBS Bank, Oversea-Chinese Banking Corp, PT Bank Ekspor Indonesia (Persero), PT Bank Mandiri (Persero), Standard Chartered Bank, Sumitomo Mitsui Banking Corp and United Overseas Bank each committed $30 million in the fundraising.

The deal pays a spread of 270bp and 260bp for onshore and offshore lenders respectively in the first six months, with the margin linked to a debt-EBITDA ratio thereafter. The margin will stay at 270bp and 260bp if the ratio is greater than or equal to 2.75, and will decrease to 250bp and 240bp when the ratio falls below 2.75.

Proceeds are to refinance existing debt facilities and for general corporate purposes.

Malaysia

Malaysia International Shipping Corp (MISC) Æs $500 million five year financing was launched into general syndication on August 1 via coordinating arrangers Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Mizuho Corporate Bank, Oversea-Chinese Banking Corp and Sumitomo Mitsui Banking Corp.

Banks are welcome to join in as mandated lead arrangers, lead arrangers and arrangers by providing $75 million or above, $50 million to $74 million, and $25 million to $49 million respectively. The deal is receiving a good response from the market and is likely to be upsized. One bank has joined the group so far.

The leads will fund the borrower by the end of August but the deadline for commitments is expected to be in early September.

An Ç850 million five year debt package for PLI (Netherlands) , an SPV of Petronas Lubricants International, was signed last week via a consortium of nine mandated arrangers on a club basis û Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Calyon, DBS Bank, HSBC, Intesa Sanpaolo, ING Bank, Oversea-Chinese Banking Corp and Sumitomo-Mitsui Banking Corp.

The bullet term loan pays a spread of 84bp over Euribor and a commitment fee of 30bp.

Final allocations have not been disclosed. Proceeds are to refinance an existing Ç950 million facility signed in November 2007.

South Korea

Daegu BankÆs $100 million one year dual tranche fundraising was sealed on August 6 via lead arrangers BayernLB, Chinatrust Commercial Bank, Commerzbank, HSBC, ING Bank, Landesbank Baden-Wuerttemberg and Oversea-Chinese Banking Corp as a club deal.

The deal is split into a $50 million tranche paying a spread of 65bp over Libor, and a $50 million-equivalent Yen portion, priced at 65bp over Yen-Libor.

Final allocations saw BayernLB, Commerzbank and Landesbank Baden-Wuerttemberg committing $20 million apiece while Chinatrust Commercial Bank, HSBC, ING Bank and Oversea-Chinese Banking Corp took $10 million each.

The funds are to refinance a $120 million term loan signed on 5 July 2007.

Taiwan

A NT$50 billion fundraising for AU Optronics (AUO) is expected to come into the market in early September via original mandated lead arranger Bank of Taiwan. The structure of the transaction is yet to be finalised.

Proceeds are to support the construction of a TFT-LCD plant in Taichung and to fund the purchase of machinery.

Lite-On TechnologyÆs NT$16.7 billion equivalent five year dual-currency debt package has been launched by original lead arranger Citi.

The deal is split into a NT$12 billion portion, which comprises a NT$10 billion term loan and a NT$2 billion revolver; and a Ç100 million (NT$4.7 billion) revolving credit.

Proceeds are to refinance an existing debt facility and for working capital purposes. The deadline for commitments is expected to be in early September.


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