loan-week-february-27march-5

Loan week, February 27-March 5

A roundup of the latest syndicated loan market news.

Australia

Macquarie Bank has underwritten a A$68 million six-year project financing for Catalpa Resources' Edna May Gold Project.

The debt package comprises a A$55 million secured tranche, a standby mezzanine portion of up to A$10 million and a A$3 million performance bond facility.

The project is forecast to generate an average annual cash operating margin of A$90 million (post royalty). In addition, Catalpa will be issuing Macquarie Bank with options over fully paid ordinary shares in Catalpa.

Proceeds are to finance a A$92 million project in Westonia.

Lynas Corporation has canceled a $105 million senior debt facility because it would not be able to satisfy the conditions of a first drawdown by March 31, 2009, due to disputes over a convertible bond facility. HVG Group was the sole mandated lead arranger.

The loan comprised a $10 million 5.5-year term loan, a $15 million 5.5-year revolver and a $10 million 6.5-year mezzanine tranche, paying a spread of 300bp over Libor during the pre-completion period and 250bp upon completion.

Proceeds were to be used for the development of Mt. Weld Mine in Western Australia and to finance a processing plant in Kemaman, Malaysia.

Mirabela Nickel has secured a $150 million 6.5-year senior loan commitment from underwriters Barclays, Caterpillar Financial Services, Credit Suisse and WestLB.

Caterpillar has committed $30 million, while the other three banks have each underwritten $40 million. Another potential lender may join the deal with a $40 million ticket before March 20, which would increase the loan amount to $190 million.

The secured facility features a two-year grace period and there will be no further syndication prior to funding. Proceeds are to fund the Santa Rita sulphide project.

Oz Minerals announced last week that it has secured approval to extend the repayment of all of its debt facilities to March 31, 2009. The extension is the second of two pre-conditions required for Minmetal's cash offer for Oz Minerals.

A $68 million-equivalent seven-year credit facility for Qantas Airways has been sealed via sole mandated lead arranger Calyon. International Transport Finance Suisse is joining as a lead arranger.

Proceeds are to finance the purchase of an aircraft.

A $100 million dual tranche facility for Wattyl Group has been completed as a club deal via ANZ and Westpac.

The secured financing comprises an $85 million core loan and a $15 million fluctuating overdraft facility, which can be drawn either in Australian dollars or New Zealand dollars.

Proceeds are for general corporate purposes.

Singapore

F&N Treasury's S$370 million debt package was upsized from S$300 million and signed on March 3 via bookrunners Bank of Tokyo-Mitsubishi UFJ, Calyon, Malayan Banking and Natixis.

The three-year financing pays a spread of 145bp over the Singapore dollar swap offer rate and is guaranteed by Fraser and Neave.

Final allocations saw mandated lead arrangers Bank of Tokyo-Mitsubishi UFJ and Malayan Banking lend S$50 million each, while Natixis and Calyon gave S$40 million and S$30 million respectively. Equal status lead arrangers Bank of China and CIMB Bank provided S$40 million apiece. Coordinating arranger Bank of East Asia held S$25 million, while China Construction Bank, Chinatrust Commercial Bank and RHB Bank ended up with S$20 million each. Participants Bank of Taiwan and Bank of Communications joined in with S$8 million and S$7 million respectively, while participants Cathay United Bank, Chang Hwa Commercial Bank, Hua Nan Commercial Bank and Qatar National Bank rounded off the syndicate with S$5 million apiece.

Proceeds are for general corporate purposes.

Taiwan

Chi Mei Corp's NT$12 billion loan was signed on February 26 via bookrunners Bank of Taiwan, Chang Hwa Commercial Bank, Chinatrust Commercial Bank, E. Sun Commercial Bank, First Commercial Bank and Taiwan Cooperative Bank.

The debt comprises a NT$6.9 billion five-year term loan and a NT$5.1 billion five-year working capital portion priced at 55bp over the 90-day CP rate.

Final allocations saw the mandated lead arranger Bank of Taiwan holding NT$2.9 billion, while Chinatrust Commercial Bank and E. Sun Commercial Bank committed NT$1.3 billion each. The rest of the bookrunners provided NT$1 billion apiece. Participant Mega International Commercial Bank lent NT$700 million, while Agricultural Bank of Taiwan, Cathay United Bank, Taichung Commercial Bank, Taiwan Business Bank and Yuanta Commercial Bank gave NT$500 million apiece. Taishin International Bank joined in with NT$300 million.

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

Due to a drop in raw material prices, Feng Ching Metal Corp is looking to cancel a NT$567 million existing facility signed in February 2007 via Chinatrust Commercial Bank.

The borrower is expected to cancel NT$430 million of the whole financing in March and the rest in June.

NexPower Technology Corp's NT$6 billion transaction has been signed via coordinating arrangers Bank of Taiwan, Chinatrust Commercial Bank and First Commercial Bank.

The six-year facility is split into NT$1 billion and NT$5 billion term loans.

The leads held NT$1.5 billion apiece, except for First Commercial Bank who took NT$1 billion. Co-arrangers Mega International Commercial Bank and Taiwan Business Bank contributed NT$750 million and NT$500 million respectively, while managers Taipei Fubon Commercial Bank and Hua Nan Commercial Bank each committed NT$300 million. Taishin International Bank rounded out the group with a hold of NT$150 million.

Secured by plant and machinery, the deal features a margin of 60bp over the primary CP rate and has a commitment fee of 5bp.

Proceeds are for capital expenditure purposes.

A NT$1.1 billion loan for Sinbon Electronics was sealed on March 2 via mandated lead arrangers HSBC, Land Bank of Taiwan, Ta Chong Bank and Taishin International Bank.

The three-year facility is divided into a NT$191 million revolver and NT$574 million and NT$380 million term loans. The margin is 100bp over the primary CP rate.

Final allocations saw the leads provide NT$199 million apiece, while participant DBS gave NT$150 million. Mega International Commercial Bank and Taipei Fubon Commercial Bank rounded off the syndicate by taking NT$100 million each.

Proceeds are to refinance a previous debt signed in May 2006 and for working capital purposes.

Thailand

A Bt6.4 billion debt package for Thai Petroleum Pipeline has been completed via mandated lead arrangers Kasikornbank and Bangkok Bank.

Final allocations saw Kasikornbank take Bt4.4 billion, while Bangkok Bank lent Bt2 billion. Kasikornbank transferred Bt2.4 billion to Bank of Ayudhya and ACL Bank.

Proceeds are for refinancing purposes.

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