Loan week, January 18-24

A roundup of the latest syndicated loan market news.

Babcock & Brown InfrastructureÆs A$800 million equivalent dual tranche facility was launched into general syndication on January 21 via mandated leads and bookrunners ANZ, Commonwealth Bank of Australia, Dresdner Kleinwort and Royal Bank of Scotland.

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.

The targeted closing date is set for February 5.

A A$1.6 billion four-year multi-tranche financing for Goodman Australian Industrial Fund was launched into general syndication on January 24 via mandated lead arrangers Commonwealth Bank of Australia and Westpac Banking Corp.

The loan comprises two A$400 million credits with tenors of two and three years respectively, a A$350 million four-year facility and a A$450 million portion that is solely held by Westpac Banking Corp.

Banks have been invited on three tiers. Banks providing A$150 million or more get the title of co-arranger while those lending between A$100 and A$150 million get the title of senior lead manager. Those joining with a hold of A$75 million or more get lead manager titles.

The funds are to refinance an existing debt and to fund expansion.

Banks have until February 23 to revert but could be extended due to the Lunar New Year holidays falling in the same period.

Senior syndication of a $2.26 billion leveraged buyout (LBO) facility for Ned Group Holdings, an SPV of Coates Hire, closed in late December 2007 and the launch date for general syndication is currently under discussion due to the looming Lunar New Year. The original mandated lead arrangers are ABN AMRO (Australia), ANZ, Calyon (Australia), Mizuho Corporate Bank, Sumitomo Mitsui Banking Corp and Westpac Banking Corp.

The financing is split between a A$2.2 billion six-year credit and a A$60 million bullet facility.

Senior syndication saw a total of 11 banks coming in as equal-status lead arrangers û AIB Bank, Aozora Bank, Bank of Ireland, Bank of Tokyo-Mitsubishi UFJ, BOS International, Commonwealth Bank of Australia, Deutsche Bank, GE Commercial Finance, Rabobank, Scotiabank and WestLB.

The funds are to support Carlyle Group and National HireÆs acquisition of Coates Hire.


Hainan AirlinesÆ $131 million two-year aircraft financing has received its first commitment from Nanyang Commercial Bank which joined the financing with a take of $30 million. Royal Bank of Scotland is leading the loan.

The deal features a spread of 120bp over Libor and an average life of 1.75 years with a one-year put option.

Banks have been invited to join on three levels. Lead arrangers providing $20 million or more receive 35bp in upfront fees for an all-in of 140bp over Libor. Arrangers contributing between $15 million and $19 million get 27.5bp while senior managers lending between $10 million and $14 million gain 20bp for all-ins of 135.7bp and 131bp respectively.

Proceeds are to finance the acquisition of two 737 and two 787 Boeing aircrafts.

Five to six banks are awaiting approvals. The deadline for banks to respond is before the Lunar New Year.

Plantation Timber ProductsÆ (PTP) LBO financing has been mandated to ING Bank, Industrial & Commercial Bank of China, Rabobank, Royal Bank of Scotland and WestLB.

The deal is currently under discussion between the mandated arrangers with details yet to be finalised. Proceeds are to refinance an $86 million facility funded in September 2006.

Syndication is ongoing for JSW SteelÆs $965 million multi-tranche financing via mandated arrangers ICICI Bank and State Bank of India which funded the deal in November.

The debt comprises a $150 million 18-month recourse loan with a margin of 55bp over Libor, a $230 million 30-month bullet with a spread of 90bp over Libor, a $430 million five-year non-recourse facility priced at 235bp over Libor and a $155 million five-year revolver featuring a margin of 220bp.

Banks have been invited to join at two levels. Those contributing $200 million or more receive the title of mandated lead arranger and bookrunner. There is also a take-and-hold option with a $150 million commitment. Banks lending $135 million or more get the title of mandated lead arranger with a take-and-hold option of $85 million.

The funds are to acquire a 90% stake in three US-based firms - Jindal United Steel, Saw Pipes and Jindal Enterprises.

Banks have until February 21 to revert.


Bank Mandiri, BNP Paribas, Citi, HSBC, Mizuho Corporate Bank, Standard Chartered and Sumitomo Mitsui Banking Corp will be closing a $406 million three-year dual tranche fundraising on a club basis for Astra International shortly.

The revolver is split into a $280 million bullet and a Rp1 billion portion which will be syndicated domestically via Bank Mandiri.

The signing ceremony is slated to take place on January 25.

A $485 million two-year credit for Calipso Investment, a SPV of Bumi Resources has been launched into the market in order to expand the lead arranger group. Credit Suisse is the sole mandated lead and bookrunner for this facility.

The funds are to support the acquisition of an Australian company, Herald Resources.

TCC Guigang Cement CorpÆs Rmb1.06 billion dual tranche credit is still syndicating via mandated lead arrangers and bookrunners BNP Paribas, Calyon, Standard Chartered Bank and Oversea-Chinese Banking Corp. Bank of China has joined in as an equal-status lead arranger.

The deal is split into a Rmb700 million five-year portion and a Rmb360 million three-year revolver priced at 105% of the PBOC rate. The two tranches have a two-year extension option. Two conditions of the loan have been changed û the US dollar portion has now been cancelled and the margin has been increased from 90% of the PBOC rate.

So far, a handful of banks are still processing their credit approvals. China Development Bank joined earlier this month.

Proceeds are to support the construction of the second phase cement plant. The targeted closing date is towards the end of February.


Binariang GSMÆs $1.2 billion seven-year debt package has closed oversubscribed via original mandated leads ABN AMRO, Bank of Tokyo-Mitsubishi UFJ, DBS Bank, HSBC, Sumitomo Mitsui Banking Corp and Standard Chartered Bank. All the banks with the exception of Standard Chartered Bank are acting as bookrunners.

Senior syndication saw a consortium of seven banks joining in as equal-status arrangers - Bank of Nova Scotia, Calyon, ING Bank, Mizuho Corporate Bank, Oversea-Chinese Banking Corp, Rabobank and WestLB.

The loan featured a $300 million greenshoe that was not exercised; instead commitments had to be scaled back. Allocations have yet to be finalised and the signing ceremony is scheduled to take place on Monday (January 28).


A $55 million three-year dual tranche fundraising for ECS Holdings was completed last Friday (January 18) via mandated arrangers and bookrunners Oversea-Chinese Banking Corp and Sumitomo Mitsui Banking Corp. The loan was oversubscribed and upsized from $45 million due to a good market response.

The deal is split into a $45 million term loan and a $10 million revolver with the margin set at 65bp over Libor for both tranches.

Final allocations saw Sumitomo Mitsui Banking Corp and Oversea-Chinese Banking Corp committing $11 million and $10 million respectively. Coming in equal-status arrangers were United Overseas Bank, also contributing $10 million, and KBC Bank with a hold of $8 million.

Arrangers Rabobank contributed $6 million while Arab Bank and Bank of East Asia provided $5 million apiece.

Proceeds are to refinance an existing $60 million debt facility signed on December 2004 and for working capital purposes.

Syndication of Express Offshore Transport and Miclyn OffshoreÆs $261 multi-tranche LBO financing closed on January 18 via a syndicate of nine banks.

The facility was heavily oversubscribed and was scaled back to meet the borrowerÆs requirements.

Bank of Scotland, Chinatrust & Commercial Bank, Industrial & Commercial Banking Corp, Oversea-Banking Corp and Standard Bank joined at the top while Mizuho Corporate Bank joined as a lead arranger. Natixis, United Overseas Bank and WestLB are the original mandated arrangers.

The signing ceremony is expected to be held in early February.

A $200 million three-year debt package for Guocoland has been launched into general syndication via sole lead Sumitomo Mitsui Banking Corp.

The loan features a spread of 53bp over Libor.

Banks have been invited on three tiers. Mandated arrangers committing $30 million or more receive 12.5bp in management fees for an all-in of 57.2bp over Libor, while lead arrangers contributing between $15 million and $29 million get 9.9bp for an all-in of 56.3bp. Arrangers lending between $5 million and $14 million gain 7.5bp for an all-in of 55.5bp.

The targeted close is at the end of this month.

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