Loan week, February 20-26

A roundup of the latest syndicated loan market news.


A A$250 million multi-tranche facility supporting the leveraged buyout of MYOB has been inked via bookrunners Calyon, UBS and Royal Bank of Scotland, with ANZ, Bank of Scotland, WestLB and Westpac joining at the top.

The deal is split into A$100 million and A$135 million term loans and a A$15 million revolving credit. The top level margin is north of 300bp over BBSY.

Proceeds are to fund the Archer Capital and HarbourVest Partners-led leveraged buyout of MYOB.

WorleyParsons' $300 million refinancing was completed last week via Commonwealth Bank of Australia, HSBC, Royal Bank of Scotland and Westpac on a club basis.

The financing comprises a term loan maturing in February 2010 and a revolving facility maturing in February 2012.

Proceeds are to refinance a $230 million dual tranche facility expiring in November 2009 and for general corporate purposes.


A consortium of seven banks has been mandated by Fonshan Sanshui Jianlibao to arrange a Rmb700 million two-year transferable term loan.

Mandated lead arrangers ANZ, BNP Paribas, HSBC, OCBC, Rabobank, Standard Chartered Bank and United Overseas Bank have each committed Rmb100 million to the loan.

The loan features a greenshoe option for an increase up to Rmb800 million, which is likely to be exercised.

The deal pays a spread of 115% of the PBOC rate. Proceeds are to refinance a Rmb1 billion financing signed in March 2007, which is due to mature next month.


A Rs52.5 billion credit for Adani Power Maharashtra, an SPV for the Gondia coal-fired thermal power project, has been inked via sole bookrunner State Bank of India.

The financing comprises a Rs49.2 billion 14-year and three-month first lien term loan and a Rs3.3 billion 15-year second lien facility. The first tranche pays a spread of each lender's BPLR minus 125bp, which amounts to an effective rate of 11% for State Bank of India. The second portion is priced at BPLR plus 75bp, which translates into an effective rate of 13% for the lead bank.

Final allocations saw State Bank of India and participants Power Finance Corporation and Rural Electrification Corporation contribute Rs10 billion each, while Punjab National Bank gave Rs5 billion. Bank of Baroda and Life Insurance Corporation ended up with Rs3 billion and Rs2.3 billion respectively, while Indian Overseas Bank and State Bank of Patiala gave Rs2 billion apiece. UCO Bank and Union Bank of India provided Rs2 billion and Rs1.5 billion respectively, while Corporation Bank, State Bank of Bikaner and Jaipur, State Bank of Mysore and Syndicate Bank joined in with Rs1 billion apiece. State Bank of Indore lent Rs500 million and IDBI Bank rounded off the syndicate with Rs280 million.

Proceeds are to finance the development of a 1,320MW coal-fired thermal power plant in Gondia, Maharashtra.

Indus Tower's Rs13 billion 12-month bridge facility has been completed via sole mandated lead arranger State Bank of India.

Final allocations saw the lead holding Rs600 million, while Canara Bank and Bank of India joined in with Rs500 million and Rs200 million respectively.

Proceeds are to fund the development of 75,000 telecom towers in India.

New Zealand

PGG Wrightson's NZ$475 million loan is currently in documentation and commitments have been received from ANZ, Bank of New Zealand and Westpac.

The facility is divided into a NZ$275 million two-and-a-half-year portion, a NZ$125 million two-year amortising credit and a NZ$75 million one-year tranche.

The company has already drawn down NZ$425 million in December 2008 and NZ$410 million this month for operational plans and commitments. Proceeds are to refinance existing debt.


Cambridge Industrial Trust's S$390 million fundraising will be launched into the market next week via mandated lead arrangers HSBC, National Australia Bank, and Royal Bank of Scotland. RHB Bank has joined in as an equal-status lead arranger.

The deal is split into a S$330 million AAA-rated term loan and a S$60 million AA-rated term loan.

Proceeds are to refinance an existing debt facility.

F&N Treasury's S$300 million three-year fundraising is being well received in the market and is likely to be upsized via mandated lead arrangers Bank of Tokyo-Mitsubishi UFJ, Calyon, Maybank and Natixis.

Eight banks have joined the leads so far and a few more banks are expected to come in within the week.

The deal is priced at 145bp over the Singapore Dollar Swap Rate. Proceeds are for debt repayment purposes and signing is expected to take place next week.


An NT$8 billion four-year term loan for De Sheng Development is in syndication via sole mandated lead arranger and bookrunner Taiwan Cooperative Bank.

The deal features a pricing of around 260bp. More than 20 banks were invited to attend the road show, which took place on February 12.

Proceeds are to fund real estate development in Taiwan.

King Yuan Electronics' NT$3 billion five-year dual tranche facility has been signed via mandated lead arrangers and bookrunners Bank of Taiwan, First Commercial Bank, Taipei Fubon Commercial Bank and Taiwan Cooperative Bank.

The leads each provided NT$400 million, except for Taiwan Cooperative Bank, which contributed NT$600 million. Co-arrangers Chang Hwa Commercial Bank, Hua Nan Commercial Bank, Taiwan Business Bank, Taichung Commercial Bank and Yuanta Commercial Bank took NT$200 million apiece, while participants Bank of Panhsin and Land Bank of Taiwan came in with holds of NT$100 million each.

The amortising loan is equally divided into two term loans that pay a spread of 60bp and 70bp over the 90-day secondary CP rate respectively. The commitment fee is 10bp.

Proceeds are for refinancing and working capital purposes.

General syndication of Lextar Electronics Corporation's NT$2 billion loan has closed via mandated lead arrangers and bookrunners Chang Hwa Commercial Bank, First Commercial Bank, Land Bank of Taiwan and Taishin International Bank.

The five-year term loan is priced at 52.5bp over the 90-day primary CP rate with a two-year extension option and a commitment fee of 15bp.

Final allocations saw the bookrunners First Commercial Bank committing NT$450 million, while Chang Hwa Commercial Bank, Land Bank of Taiwan and Taishin Financial gave NT$250 million apiece. Participants Hua Nan Commercial Bank, Mega International Commercial Bank and Taiwan Cooperative Bank provided NT$200 million each, while Bank of Taiwan and Export-Import Bank of the Republic of China ended up with NT$100 million apiece.

The signing date is slated for March 9. Proceeds are for capital expenditure purposes.

Taiwan Top Power Holdings' NT$1.1 billion 10-year financing was sealed on February 20 via bookrunners Cathay United Bank and China Development Industrial Bank.

The debt is split into a NT$980 million term loan and a NT$120 million revolver priced at 120bp over the 90-day secondary CP rate.

Final allocations saw China Development Industrial Bank and Cathay United Bank holding NT$530 million and NT$470 million respectively, while participant Hua Nan Commercial Bank joined in with NT$100 million.

Proceeds are for working capital purposes. 

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