loan-week-december-28

Loan Week, December 2-8

A digest of the latest loan news.
Australia

Seven MediaÆs A$2.65 billion leveraged buyout facility has been launched via mandated lead arrangers Morgan Stanley, Goldman Sachs JBWere and Citigroup. The senior debt comprises a A$2.1 billion six year tranche æAÆ, a A$200 million six year revolving credit æBÆ and a A$350 million six year term tranche æCÆ. There is another A$400 million 6.5 year subordinated debt portion.

Both tranches æAÆ and æBÆ offer a margin of 237.5bp over BBSY and tranche æCÆ is priced at 212.5bp over BBSY. Proceeds will be used to fund the acquisition of Seven Media Group by Kohlberg Kravis Roberts & Co. Banks have until December 28 to revert.

Bangladesh

Bangladesh Petroleum CorpÆs $250 million 360 day facility has been completed via sole mandated lead arranger Standard Chartered. A total of 22 banks are participating in this deal. The 360 day facility is priced at 135bp over Libor and proceeds will be used to pay for imports of crude oil.

Mandated lead arranger Standard Chartered and arranger BNP Paribas are pledging $23.75 million each. Arrangers Commercial Bank of Qatar, DZ Bank, National Bank of Dubai and Societe Generale are lending $20 million apiece. Managers are Bank Muscat International, Bank Negara Indonesia (Hong Kong), Calyon, Indian Bank, Mizuho Corporate Bank, Muslim Commercial Bank, State Bank of India (London), TAIC, Union National Bank and United Bank holding $10 million each. Participants are Bahraini Saudi Bank, Bank Al Habib (Bahrain), Emirate International Bank, Habib Bank (Zurich) and ICICI Bank joining with holds of $5 million each.

China

Syndication of China International Trust & Investment Corp (CITIC Group)Æs $200 million term loan has yet to close via mandated coordinating arrangers Bank of Tokyo-Mitsubishi UFJ, HSBC, ING Bank and Mizuho Corporate Bank. Thus far, the five year facility has secured commitments from several banks. Several others are said to be in the final stage of getting credit approvals.

The five year facility carries a margin of 35bp over Libor, leading to a top level all-in of 41bp. HSBC and ING Bank are running the books while Bank of Tokyo-Mitsubishi UFJ is the facility and documentation agent. Proceeds will be used for general corporate funding and to refinance existing indebtedness.

Banks have until today (December 8) to respond.

Dongfeng Yueda Kia AutomobilesÆ $250 million facility is syndicating via sole mandated arranger Citigroup. The five year financing has secured commitments from at least 11 banks. Up to two other banks are still processing credit approvals. Proceeds will be used to fund the construction of a plant in China. Financial close is slated for late December.

Sole mandated lead arranger Citigroup has launched Shanghai Electric PowerÆs Rmb1 billion ($127 million equivalent) revolving credit facility into syndication. The three year facility features a margin of 90bp over PBOC and is being marketed to banks on two tiers. Arrangers holding Rmb150 million or above get 2.5bp for a top level all-in of 90.8bp and senior managers lending Rmb75 million to Rmb100 million will get a zero commitment fee. Proceeds will be used for working capital purposes.

India

Sub-underwriting and general syndication for ICICI BankÆs $1 billion yen-equivalent financing are yet to close with banks expected to revert by the end of December.
Thus far, the facility has secured its first commitment. A handful of banks are processing credit approvals.

The arranger group consists of Bank of Tokyo-Mitsubishi UFJ, BayernLB, BNP Paribas, Calyon, Chinatrust Commercial Bank, Fortis Bank, HSBC, Lloyds TSB Bank, Mizuho Corporate Bank, Natexis Banques Populaires, Royal Bank of Scotland, Standard Chartered and SMBC. Proceeds will be used for general corporate purposes.

Syndication for Tata SteelÆs $1.78 billion financing has received commitments from three banks. Several other banks are said to be in the final stage of getting credit approvals.
Joint mandated arrangers ABN Amro and Standard Chartered have already underwritten the facility. The bridge facility carries a margin of 25bp and proceeds will be used for further acquisition purposes.

Tata Tea has awarded the mandate for its ú284.3 million facility to ICICI Bank and Standard Chartered. The multi-tranche facility is split between an ú85 million six year senior debt æAÆ, a ú108.5 million seven year senior debt æBÆ, a ú35 million six year revolving credit facility æCÆ and a ú55.8 million 10 year junior tranche æDÆ, featuring margins of 180bp, 210bp, 180bp and 400bp over Libor respectively. A wider general syndication will be launched shortly.
Indonesia

PT Central ProteinaprimaÆs $200 million facility has been launched via Barclays Capital, Chinatrust Commercial Bank and SMBC. The financing has received a strong response from the market and three banks have already committed. A number of banks are still processing approvals.

The five year facility carries an interest margin of 350bp over Libor, leading to a top level all-in of 390bp over Libor. Proceeds will be used to refinance existing debt and for general corporate purposes.

Japan

Cido Shipping has successfully raised $764 million via a syndicate of seven banks. The 10 year ship financing is split into a $720 million senior tranche which is being syndicated to commercial banks and a $44 million junior tranche which was fully underwritten by Calyon prior to launch.

Sole mandated lead arranger and bookrunner Calyon is providing $192.5 million, senior lenders are Credit Suisse taking $150 million, Commerzbank, Fortis Bank and HSH Nordbank holding $92.5 million apiece and Deutsche Schiffsbank and NIBC Bank lending $50 million each.

Singapore

Chemical Industrial (Far East)Æs S$40 million five year financing has been completed on a club basis. Joint mandated lead arrangers DBS Bank and KBC Bank are joined by Bangkok Bank and Maybank (Singapore). Proceeds will be used to refinance existing debt. Signing took place on November 24.

South Korea

Hana BankÆs $250 million facility has been completed on a club basis via a syndicate of 15 banks. The one year facility carries a margin of 5bp, leading to a top level all-in of 11bp over Libor.

Mandated arrangers are ABN Amro (Seoul), Barclays Bank, BayernLB, BNP Paribas (Seoul), Calyon (Seoul), Citibank Korea, DBS Bank, Dresdner Bank, HSH Nordbank (Singapore), Landesbank Baden-Wurttemberg (Singapore), Mizuho Corporate Bank (Seoul), Oversea-Chinese Banking Corp, Standard Chartered Bank (Hong Kong), SMBC and Wachovia Bank.

Proceeds will be used to refinance existing debt and for general working capital. Signing took place on December 1 (last Friday).

Mandated lead arrangers BayernLB, Calyon, DBS Bank, HSBC, HSH Nordbank, Oversea-Chinese Banking Corp, Standard Chartered and SMBC have closed Korea Exchange BankÆs $300 million fundraising. A total of 12 banks are leading the deal.

Mandated lead arrangers are BayernLB, Calyon, DBS Bank, HSBC, HSH Nordbank, OCBC, Standard Chartered (Hong Kong) and SMBC underwriting $34.1 million each. Arrangers are UniCredito Italiano and Banque et Caisse dÆEpargne de lÆEtat lending $10 million apiece. Co-arranger is Banca Nazionale del Lavoro taking $5 million and lead manager is Toronto Dominion providing $2 million.

The dual facility is split into a $200 million 364 day tranche and a $100 million two year tranche with margins of 7bp and 11.5bp respectively. Proceeds will be used for working capital. Signing was held on December 4.
Taiwan

Cite PublishingÆs NT$3 billion facility has been completed via a group of eight banks. The financing consists of a NT$2.7 billion 5.5 year term tranche æAÆ that is priced at 170bp over the primary CP rate and a NT$300 million 6.5 year revolving credit tranche æBÆ that carries a margin of 100bp over the primary CP rate.

Mandated lead arrangers DBS Bank, Calyon, SMBC and United Overseas Bank are committing NT$500 million each, Bank Sinopac is lending NT$360 million, Bank of Nova Scotia is contributing NT$320 million, Shanghai Commercial & Savings Bank is taking NT$180 million and Bank of Panhsin is providing NT$140 million.

Proceeds will be used to refinance existing debt.

The NT$4.3 billion financing for Chan En Construction has been launched via sole mandated lead arranger Land Bank of Taiwan. The 15 year facility comprises a NT$740 million term tranche æAÆ, a NT$2.18 billion term tranche æBÆ, a NT$1.18 billion term tranche æCÆ and a NT$200 million revolving credit tranche æDÆ. Proceeds will be used to fund the construction of a hotel in Hsinchu and for working capital purposes.

Sub-underwriting for China Network SystemsÆ NT$28 billion financing has been closed via joint mandated lead arrangers Citigroup and Chinatrust Commercial Bank. The leveraged buyout financing has been heavily oversubscribed and has attracted at least 16 banks. The financing consists of a NT$16.75 billion seven year tranche æAÆ, a NT$9.5 billion 8.5 year tranche æBÆ and a NT$1.75 billion 8.5 year tranche æCÆ.

DBS Bank, ING Bank, Societe Generale, SMBC and Taipei Fubon Commercial Bank are said to have already committed. China Development Industrial Bank, Industrial Bank of Taiwan and Standard Chartered dropped out from the group said a banker close to the deal. However, it is uncertain whether Hsinchu International Bank, which is being acquired by Standard Chartered recently, will join in the deal or not.

Proceeds will be used to support the MBK Partners-led leveraged buyout of China Network Systems.

Grand Prosper (Hong Kong) and Rich Universe InternationalÆs $66 million facility has been upsized from $40 million due to an overwhelming response in general syndication. The five year facility saw a total of 14 banks participating.

Mandated lead arrangers are Mega International Commercial Bank, Chinatrust Commercial Bank and Bank of Taiwan holding $8 million each. Participants are Taiwan Cooperative Bank taking $8 million, Bangkok Bank pledging $6 million, and Shanghai Commercial & Savings Bank lending $5 million. Seven others are providing $3 million each. They are E.Sun Bank, Bank SinoPac, Dah Sing Bank, Hua Nan Commercial Bank, Taipei Fubon Commercial Bank, Sunny Bank and Bank of Kaohsiung. First Commercial Bank is holding $2 million.

The five year loan features a margin of 53bp over Libor, translating to a top level all-in of 54.8bp. Proceeds will be used to refinance existing debt and for working capital purposes. Signing is targeted for mid December.

The $195 million ship financing for Taiwan Marine Transportation has been completed via a group of three banks. Mandated lead arranger Commerzbank was joined by Deutsche Schiffsbank and Korea Development Bank. The 10 year facility is split between a $133 million term tranche æAÆ that offers a spread of 95bp over Libor and a $62 million term tranche æBÆ that carries an interest rate of 128bp over Libor. Proceeds will be used to finance the recent purchase of seven vessels. The borrowing entity is Ugly Duckling Shipping.
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