Loan week, December 12-18

A roundup of the latest syndicated loan market news.

A A$537.7 million five-year multi-tranche debt package for Energy Fund Finance was closed on December 12 by ANZ, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Commonwealth Bank of Australia, Sumitomo Mitsui Banking Corp and Westpac.

The facility comprises A$231.3 million, A$20.1 million, A$86.4 million and A$199.9 million term loans and the lead arrangers committed A$89.6 million apiece.

Proceeds are to support the acquisition of a portfolio of Australian energy infrastructure assets spun off from APA Group. Marubeni, Osaka Gas and APA Group are the sponsors.

A A$320 million debt package for Flight Centre was signed on December 12 via mandated lead arrangers ANZ, National Australia Bank and Westpac.

The deal is split into a A$170 million three-year revolver and a A$150 million letter of credit facility.

Final allocations saw National Australia Bank committing A$120 million while ANZ and Westpac held A$100 million apiece.

Proceeds are to refinance debt.

Pacific HydroÆs A$262 million fundraising has been signed via mandated lead arrangers ANZ, BOS International (Australia), National Australia Bank and Westpac on a club basis.

The facility is split into a A$90 million three-year revolver and term loans of A$45 million, A$60 million and A$67 million. Final allocations saw BOS international commit A$92m while the other leads contributed A$56.7 million apiece.

Proceeds are for general corporate purposes.

Hong Kong

An $80m two-year bullet loan for Noble Group was completed on December 13 via sole bookrunner HSBC. Landesbank Baden-Wurttemberg and Kuwait Finance House came in as joint lead arrangers, while Banque BIA and Societe Generale joined at lower levels.

Proceeds are for refinancing and working capital purposes.


Syndication for Coastal Gujarat PowerÆs $1.5 billion 15-year term loan has been signed via State Bank of India.

The facility pays a spread of 200bp minus SBAR. Aside from the syndicated portion, there is a $327 million 18-year buyer credit solely provided by BNP Paribas with a guarantee from Korea Export & Insurance Corp. There are also $450 million and $250 million 19 year-term loans provided by International Finance Corp and Asian Development Bank respectively.

Final allocations saw mandated lead arranger State Bank of India take $501 million and participant India Infrastructure Finance take $451 million. Oriental Bank of Commerce held $138 million, while Housing and Urban Development Corp and Vijaya Bank took $125 million and $123 million respectively. State Bank of Bikaner & Jaipur committed $50 million, while State Bank of Hyderabad, State Bank of India and State Bank of Indore joined in with $25 million each.

Proceeds are to fund a $4.24 billion project that entails the development of a 4,000MW Mundra coal-fired power station under a BOO and BOT concession in Gujarat, India.

Indian BankÆs $60 million one-year term loan via Intesa Sanpaolo and Standard Chartered Bank has been called off.

The deal was launched in August and was priced at 50bp over Libor. Proceeds were for working capital purposes.

A $510 million equivalent five-year transaction for Vodafone Essar was sealed as a club deal on December 15 through a consortium of six banks.

Final allocations saw Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, HSBC and Standard Chartered Bank commit $100 million apiece, while Intesa Sanpaolo and Mizuho Corporate Bank provided $60 million and $50 million respectively.

Proceeds are to fulfill the borrowerÆs capital expenditure requirements.


Syndication of Bukit Makmur Mandiri Utama (Buma)Æs $366 million four-year term loan is still ongoing via bookrunners DBS, ING and Sumitomo Mitsui Banking Corp with Bank of Tokyo-Mitsubishi UFJ joining at the top.

Proceeds are to take out a bridge loan signed in 2007. General syndication is expected to take place in early 2009.


Cambridge Industrial Trust (CIT)Æs S$390 million dual tranche facility has beeen oversubscribed and increased by S$5 million from S$385 million via original mandated lead arranger and bookrunner HSBC. National Australia Bank and RBS joined HSBC as equal status arrangers, while one more bank is processing its credit approval to join at the top.

The financing is now in documentation but there may still be a limited general syndication early next year as there are a number of banks that are interested in the transaction.

Proceeds are for refinancing purposes.

Sri Lanka

Government of Sri-Lanka has secured a $170 million amendment from Arab Investment Corp, Bank Muscat, Emirates Bank Group, HSBC, ICICI Bank, Indian Bank, Indian Overseas Bank, Standard Chartered Bank and State Bank of India.

Proceeds are to amend a $150 million facility signed in June 2008.


Syndication of a NT$13 billion dual tranche facility for Chi Mei Corp was launched into the market via mandated lead arranger Bank of Taiwan.

The debt package is divided into a NT$7 billion term loan and a NT$6 billion revolving credit. The five-year loan pays a spread of 55bp over the primary CP rate.

Mandated lead arrangers and bookrunners joining with NT$2 billion or above receive 25bp, while a contribution between NT$1.5 billion and NT$1.9 billion pays 18bp. Those comitting NT$1.3 billion to NT$1.4 billion get 15bp. Arrangers committing between NT$1 billion and NT$1.2 billion get 10bp while managers and participants contributing NT$500 million to NT$900 million and NT$300 million to NT$400 million take 6bp and 3bp respectively.

Proceeds are to refinance existing debt facilities and for working capital purposes. Closing is expected in January 2009.

Syndication of DelSolarÆs NT$4 billion five-year transaction is in progress via mandated lead arrangers and bookrunners Chinatrust Commercial Bank and First Commercial Bank.

The debt package is split into a NT$3 billion term loan which is priced at 67.5bp over the secondary CP rate and a NT$1 billion revolver that pays a spread of 72bp. The commitment fee is 12bp if the usage of the term loan is less than 70% or that of the revolving credit is less than 50%.

Banks are welcome to join at three levels. Mandated lead arrangers committing NT$600 million or above earn 25bp, senior managers providing NT$300 million to NT$599 million get 12bp and participants coming in with NT$299 million or below take 7bp.

A road show has taken place and closing is expected before the Chinese New Year. Proceeds are to fund the construction of a solar cell plant in Taiwan and for working capital purposes.

Kao Ming Container Terminal CompanyÆs NT$16.2 billion debt package was sealed yesterday via bookrunners E. Sun Commercial Bank, First Commercial Bank, Fubon Financial Holding, Land Bank of Taiwan, Mega International Commercial Bank, Taiwan Business Bank, and Taiwan Cooperative Bank.

The facility is divided into an NT$11.7 billion term loan, a NT$4 billion term loan and a NT$500 million guarantee facility. The deal is priced at 85bp over the one-year postal bureau deposit rate.

Final allocations saw Mega International Commercial Bank and Fubon Financial Holding contribute NT$2.0 billion and NT$1.7 billion respectively, while the rest of the leads gave NT$1.5 billion apiece. Participants Chang Hwa Commercial Bank, Hua Nan Commercial Bank and Yuanta Commercial Bank held NT$969 million each, while Agricultural Bank of Taiwan lent NT$775 million. Export-Import Bank of the Republic of China and Taichung Commercial Bank joined in with NT$485 million apiece.

Proceeds are to fund the construction of the first phase of Kaohsiung Port Container Terminal No. 6.

Syndication of a NT$7.2 billion dual tranche facility for President Fair Development Corp is close to sign via bookrunners Agricultural Bank of Taiwan, Bank of Taiwan, Chung Hwa Commercial Bank, DBS Bank, First Commercial Bank and Land Bank of Taiwan.

The deal is split into a NT$6.7 billion 10-year term loan and a NT$475 million five-year revolver. The package pays a spread of 65bp over the 90-day CP Primary rate.

Banks have been invited to join as co-arrangers committing NT$500 million or above for an upfront fee of 16bp. Banks joining in as senior managers with NT$300 million to NT$499 million receive an upfront fee of 12bp. Banks holding NT$200 million to NT$299 million get the manager title and 8bp in fees.

Bank of Kaohsiung, Hua Nan Commercial bank, Taiwan Business Bank, Taiwan Cooperative Bank and Mega International Commercial Bank have joined as participants.

Proceeds are to refinance a previous debt facility and for working capital purposes.

Taiwan Prosperity Chemical CorpÆs NT$3.66 billion five-year dual tranche financing was inked on December 11 through mandated lead arrangers and bookrunners Chinatrust Commercial Bank, Mega International Commercial Bank and Taiwan Cooperative Bank.

The deal was divided equally into two NT$1.83 billion term loans. Secured by land, plants and equipment, the amortising facility features a margin of 55bp over the 90 day secondary CP rate and has a commitment fee of 10bp if the usage is less than 70%.

Final allocation saw all the leads commit NT$600 million, except for Mega International Commercial Bank which provided NT$700 million. Coordinators Yuanta Commercial Bank and Chang Hwa Commercial Bank gave NT$500 million and NT$400 million respectively, while managers Bank of Taiwan, First Commercial Bank and Taiwan Business Bank ended up with NT$360 million, NT$300 million and NT$200 million.

Proceeds are for refinancing and capital expenditure purposes.
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