Loan week, February 8-14

A roundup of the latest syndicated loan market news.

Syndication of Babcock & Brown InfrastructureÆs A$800 million-equivalent dual tranche facility is being well received. Mandated arrangers and bookrunners ANZ, Commonwealth Bank of Australia, Dresdner Kleinwort and Royal Bank of Scotland have funded the loan.

The debt package comprises a $500 million three-year credit and a A$235 million five-year multi-currency portion. The margin is priced at 100bp over BBSY for the three-year tranche and 115bp over BBSY for the five-year loan.

A handful of commitments are already in and syndication is scheduled to close next week.

ANZ, Commonwealth Bank of Australia, Deutsche Bank, JPMorgan and National Australia Bank have been mandated for Origin EnergyÆs A$1.1 billion-equivalent dual tranche three-year financing.

The facility is split into a A$900 million revolving/term loan portion and a US$200 million revolver.

Proceeds are for working capital purposes.

SPI Electricity & Gas Australia HoldingsÆ A$1.55 billion dual tranche fundraising has been completed via mandated arrangers and bookrunners Citi, Commonwealth Bank of Australia, National Australia Bank, Royal Bank of Scotland and Westpac.

The deal was spilt equally into a five-year term loan and a three-year revolver.

Allocations saw the bookrunners contributing A$150 million apiece while DBS Bank and Fortis Bank (Singapore Branch) took A$150 million each as co-arrangers.

Coming in as managers with a hold of A$100 million apiece were Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, HSBC (Australia Branch), Toronto-Dominion Bank (Australia Branch) and Oversea-Chinese Banking Corporation.

The funds are to refinance a A$600 million revolver signed in July 2007 and for general corporate purposes.


The Rmb4.7 billion three-year financing for Shanghai Xin Lu One, Two and Three Properties (all SPVs of Sun Hung Kai Properties) has been signed via a syndicate of eight mandated leads as a club deal. The leads are Bank of China (Shanghai Branch), Bank of East Asia (Shanghai Branch), Bank of Tokyo-Mitsubishi UFJ (Shanghai Branch), BNP Paribas (Shanghai Branch), HSBC (Shanghai Branch), Industrial & Commercial Bank of China (Shanghai Branch), Standard Chartered Bank (Shanghai Branch) and Sumitomo-Mitsui Banking Corporation (Shanghai Branch).

The margin is priced at 90% of the PBOC rate. The funds are to finance the development and construction of the International Finance Centre in Shanghai.

Hong Kong

Syndication of Addchance HoldingsÆ HK$500 million three-year fundraising has been extended as several banks are still processing credit approvals. Hang Seng Bank is the sole mandated lead arranger and bookrunner.

The loan pays a spread of 108bp over Hibor and has an average life of 2.25 years.

Banks have been invited on three tiers. Arrangers committing HK$80 million or above receive an upfront fee of 60.75bp while co-arrangers contributing between HK$50 million and HK$75 million gain 54bp in fees. Lead managers providing between HK$30 million and HK$45 million get 45bp flat.

The target closing date has been rescheduled to the end of next week. Proceeds are for capital expenditures.

Idea CellularÆs $85 million term loan has been completed via mandated arrangers Chinatrust Commercial Bank, DBS Bank, Intesa Sanpaolo and Sumitomo-Mitsui Banking Corporation. The original sole lead arranger and bookrunner was Sumitomo-Mitsui Banking Corp.

The deal features a seven-year tenor and an average life of six years.

Allocations saw Sumitomo-Mitsui Banking Corp contributing $40 million while Chinatrust Commercial Bank, DBS Bank and Intesa Sanpaolo committed $15 million each.

The funds are to support capital expenditure requirements.


A $386 million-equivalent dual tranche three-year debt package for PT Astra International has been inked via a consortium of seven banks on a club basis. The mandated arrangers are Bank Mandiri, BNP Paribas, Citi, HSBC, Mizuho Corporate Bank, Standard Chartered Bank and Sumitomo Mitsui Banking Corporation.

The revolver is split into a $280 million bullet and an Rp1 trillion portion with margins priced at 100bp over Sibor and over the SBI rate respectively.

Proceeds are to refinance existing debt.


Makati Development CorporationÆs $59 million four-year and six-month standby letter of credit facility has been completed via sole bookrunner Citi.

Syndication saw five other banks joining in û ANZ, Bank of China, BNP Paribas, Maybank and Mizuho Corporate Bank.

The funds are to secure the full and prompt performance of the borrowerÆs obligation under its new project.


Allocations for Fraser & NeaveÆs $150 million fundraising have now been released via mandated leads and bookrunners Bank of Tokyo-Mitsubishi UFJ and DBS Bank. The facility was downsized from $200 million.

The deal comprises a $115 million five-year term loan priced at 29bp over Sibor and a $35 million seven-year revolver paying a spread of 40bp over Sibor.

Final allocations saw Bank of Tokyo-Mitsubishi UFJ and DBS Bank providing $50 million and $30 million respectively. Coming in as equal-status arrangers were Banco Bilbao Vizcaya Argentaria and Natixis both also holding $30 million apiece, while Intesa Sanpaolo joined in as a co-arranger committing $10 million.

Marina Bay SandsÆ S$5.5 billion multi-tranche financing was inked just before the Lunar New Year (February 5) via a consortium of 13 mandated lead arrangers û Bank of Nova Scotia, Calyon, Citi, DBS Bank, Goldman Sachs, Lehman Brothers, Maybank, Merrill Lynch, Royal Bank of Scotland, Standard Chartered Bank, Sumitomo-Mitsui Banking Corporation, Oversea-Chinese Banking Corporation and United Overseas Bank. The bookrunners were the four original mandated leads: DBS Bank, Goldman Sachs, Oversea-Chinese Banking Corp and United Overseas Bank with the addition of Citi, Lehman Brothers and Merrill Lynch.

The financing comprises term loans of S$2.0 billion and S$2.8 billion, a S$500 million revolver and a S$192 million guarantee facility, with only the term loans being syndicated. The margin is 225bp over SOR. The guarantee portion will only be held by DBS Bank, Oversea-Chinese Banking Corp and United Overseas Bank.

Syndication was well received with 19 other banks joining in. Coming in as senior lead arrangers were Aareal Bank, Bangkok Bank, Bank of China, BNP Paribas, Commerzbank, CIMB Bank and Hypo Real Estate while RHB Bank and Mizuho Corporate Bank joined in as arrangers.

Rounding off the syndicate were senior managers Bank of East Asia, Bank of India, Bank of Taiwan, Chang Hwa Commercial Bank, China Construction Bank, CrTdit Industriel et Commercial, First Commercial Bank, Hua Nan Commercial Bank, Land Bank of Taiwan and Mega International Bank. Final allocations have yet to be disclosed.

Proceeds are to refinance an existing bridge facility signed in August 2006 and for the construction costs of the integrated resort.


A NT$13.4 billion six-year dual-tranche fundraising for Radium Life Technology will be launched into syndication over the coming week. The mandated leads are Mega International Commercial Bank and Taiwan Cooperative Bank.

The credit is split into term loans of NT$13 billion and NT$400 million. The margins are priced at 150bp and 175bp over the one-year CEPD and Mega BankÆs one-year time deposit rate respectively.

Proceeds are to finance the construction and development of properties near Xiaobitan subway station.

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