loan-week-january-2228

Loan week, January 22-28

A roundup of the latest syndicated loan market news.

Hong Kong

Esprit Corporate Services' HK$2.6 billion five-year self-arranged fundraising was heavily oversubscribed to HK$6.5 billion and is expected to be signed in mid-February via a consortium of 13 coordinating arrangers.

The five-year term loan offers a spread of 65bp over one-, two-, three- or six-month Hibor.

The coordinating arrangers are: ANZ, Bank of America Merrill Lynch, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas (Hong Kong), Chinatrust Commercial Bank, Citi, Deutsche Bank (Hong Kong), HSBC, Mizuho Corporate Bank (Hong Kong), Oversea-Chinese Banking Corp (Hong Kong), Standard Chartered Bank (Hong Kong), Sumitomo Mitsui Banking Corp and UBS AG.

Proceeds are to support Esprit China Distribution's acquisition of Glory Raise.

Sino Land's HK$8.5 billion five-year dual-tranche facility has been signed via mandated lead arrangers Bank of China (Hong Kong), Hang Seng Bank, HSBC, Industrial & Commercial Bank of China and Sumitomo Mitsui Banking Corp on a club basis.

The guaranteed transaction comprises HK$4.3 billion and HK$4.2 billion term loans. Proceeds are to support the purchase and development of a site in Tai Po, Hong Kong.

India

A $260 million 10-year term loan for Shipping Corp of India (SCI) has been launched via sole mandated lead arranger & bookrunner SBI Capital Markets.

The deal is fully underwritten by the lead and proceeds are to finance the purchase of tankers.

Malaysia

Maxis's $2 billion fundraising has been upsized from the initial $1.5 billion sought via mandated lead arrangers Bank of Nova Scotia, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Calyon, DBS Bank, HSBC, Mizuho Corporate Bank, Natixis, Oversea-Chinese Banking Corp, Royal Bank of Scotland, Standard Chartered Bank and Sumitomo Mitsui Banking Corp.

Launching of general syndication is yet to be decided by the leads and the borrower.

Proceeds are for debt repayment purposes.

Philippines

San Miguel Brewery successfully secured a $300 million five-year club deal on January 28 via mandated lead arrangers ANZ, Bank of Tokyo Mitsubishi UFJ, Calyon, Chinatrust Commercial Bank, DBS Bank, HSBC, ING Bank, Mizuho Corporate Bank, Standard Chartered Bank and Sumitomo Mitsui Banking Corp.

The lenders each contributed $30 million and proceeds are for general corporate purposes.

Singapore

A $44 million term loan for Franklin Offshore International has been inked via United Overseas Bank, Standard Chartered Bank and RZB Bank on a club basis.

Proceeds are to repay outstanding facilities.

A $150 million transaction for Louis Dreyfus Commodities Asia and LD Commodities Australia Holdings is in the market via mandated lead arrangers and bookrunners ANZ, BNP Paribas and HSBC.

The facility comprises three-year term loans of $100 million and $50 million, which are priced at 220bp over Libor. Banks lending $30 million or above get an upfront fee of 135bp along with the mandated lead arranger title. Lead arrangers holding $20 million to $29 million take 112.5bp, while arrangers offering $10 million to $19 million earn 90bp.

There are 15 to 16 banks looking to participate in the deal and the loan amount is likely to be upsized to approximately $300 million.

Proceeds are for general corporate purposes and signing is targeted to take place in February.

South Korea

Hyundai Rotem's ¥8 billion one year, four months debt package was completed earlier this week via sole bookrunner Sumitomo Mitsui Banking Corp. ANZ, Bank of China, Industrial & Commercial Bank of China and United Overseas Bank were the mandated lead arrangers with Hana Daetoo Securities joining in as the lead arranger.

The transaction was split into ¥2 billion non-guaranteed and ¥6 billion guaranteed term loans which are priced at 2.76% p.a. and 1.46% p.a. respectively.

Proceeds are for working capital purposes.

Taiwan

Cheng Loong Corp's NT$4.8 billion transaction has been inked via bookrunners Cathay United Bank, Chang Hwa Commercial Bank, E.Sun Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank, Taipei Fubon Commercial Bank and Taishin International Bank. The deal was oversubscribed to NT$7.5 billion and upsized from NT$4 billion.

The five-year revolving credit offers a margin of 63bp over the secondary CP rate, with a minimum after-tax interest rate of 1.6% in the first year after drawdown.

The leads took NT$450 million each, while lead managers Bank of East Asia, DBS Bank and Land Bank of Taiwan came in with NT$250 million apiece. Industrial Bank of Taiwan, Ta Chong Bank and Taiwan Cooperative Commercial Bank lent NT$200 million each, while Shanghai Commercial & Savings Bank, Taiwan Business Bank and Taiwan Shin Kong Commercial Bank ended up with NT$100 million apiece.

Proceeds are to refinance a NT$3.3 billion transaction signed in April 2005 and for working capital purposes.

Syndication of a NT$1.2 billion-equivalent five-year revolver for Fair Friend Enterprise and its Hong Kong-incorporated subsidiary Good Friend (HK) Corp has been closed via mandated leads Bank of Taiwan, Industrial Bank of Taiwan and Land Bank of Taiwan.

The transaction comprises a NT$1.2 billion tranche and a $20 million portion. The new Taiwan dollar tranche is priced at 117.5bp over the secondary CP rate, while the US dollar tranche features the same margin over Libor. There is also a pricing floor of 1.9% pretax for the new Taiwan dollar portion.

Syndication saw Bank of Taiwan and Land Bank of Taiwan join in as equal-status arrangers, while Bangkok Bank, Chang Hwa Commercial Bank, DBS Bank, First Commercial Bank and Shanghai Commercial & Savings Bank came in at lower tiers.

Proceeds are for refinancing and working capital purposes. Signing is slated for mid-February.

A NT$2.5 billion fundraising for Jay She Lyn Construction, Mr Chou I-Chiang and Mrs Hsu Wei-Shu was completed on January 27 via sole bookrunner Land Bank of Taiwan.

The debt package is split into two five-year term loans of NT$700 million and NT$1.8 billion each. Tranche one features a pricing of 101bp over the one-year average savings rate for Bank of Taiwan, Chang Hwa Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank, Land Bank of Taiwan and Taiwan Cooperative Bank, which will step up to 119bp over the same rate starting from the second year. Tranche two offers a margin of 109bp over the same base in year one, which will step up to 129bp for the remaining tenor of the facility.

The lead contributed NT$1.2 billion while joint arranger Agricultural Bank of Taiwan took NT$650 million. Participants Taiwan Cooperative Commercial Bank held NT$240 million, while Bank Sinopac joined in with NT$180 million. Yuanta Commercial Bank came in with NT$130 million while Sunny Bank ended up with NT$100 million.

Proceeds are to finance the construction of the Crystal Palace in Danshui, Taipei.

Linklinear Development's NT$5.7 billion transaction was completed on January 22 via coordinating arrangers Bank of Taiwan and First Commercial Bank.

The debt package consists of NT$1.6 billion and NT$4.2 billion term loan tranches which are priced at 62bp over the 90-day primary CP rate with an interest rate floor of 2% after tax. However, the total outstanding amount for the term loan tranches cannot exceed NT$5.3 billion. There is also a NT$400 million performance bond tranche in the facility.

Final allocations saw First Commercial Bank commit NT$2 billion, while Bank of Taiwan lent NT$1.5 billion. Managers Cathay United Bank, Mega International Commercial Bank and Sunny Bank gave NT$500 million each, while Industrial Bank of Taiwan and participant Shanghai Commercial & Savings Bank joined in with NT$450 million and NT$200 million respectively.

Proceeds are to support the development of the Tree Valley Park at the Southern Science Park.

RSEA Engineering Corp's NT$12.7 billion three-year financing has been completed via bookrunners Bank of Taiwan, Chinatrust Commercial Bank, Taipei Fubon Commercial Bank and Taiwan Business Bank.

With a two-year extension option at the discretion of the lenders, the debt package is split into a NT$11.4 billion term loan and a NT$1.3 billion revolving credit. The loan offers a margin of 52bp over the one-year post office saving rate with an interest rate floor of 2% pretax.

Final allocations saw coordinating arrangers Bank of Taiwan and Chinatrust Commercial Bank commit NT$3 billion each, while Taipei Fubon Commercial Bank and Taiwan Business Bank came in with NT$2.5 billion and NT$2 billion respectively. Co-arrangers Hua Nan Commercial Bank took NT$1.2 billion and Taiwan Shin Kong Commercial Bank came in with NT$1 billion.

Proceeds are to refinance a NT$12.5 billion facility signed in December 2006 and for working capital purposes.

Taipei New Horizon Corp's NT$3.6 billion project financing was signed on January 22 via bookrunners Bank of Taiwan and Taipei Fubon Commercial Bank.

The seven-year transaction comprises a NT$3.5 billion term loan, which is priced at 80bp over the one-year post office savings rate and a NT$65 million performance bond provided by the leads.

Final allocations saw Bank of Taiwan contribute NT$800 million, while Taipei Fubon Commercial Bank offered NT$750 million. Participants Bank Sinopac committed NT$500 million and Taiwan Business Bank took NT$350 million. Agricultural Bank of Taiwan, Cathay United Bank and Hua Nan Commercial Bank lent NT$250 million each, while Yuanta Commercial Bank and Shanghai Commercial & Savings Bank ended up with NT$200 million and NT$150 million respectively.

Proceeds are to finance the Songshan Tobacco Plant Culture Park project.

Thailand

Charoen Pokphand Group (CP Group)'s Bt3 billion five-year term loan has been signed via sole bookrunner Kasikornbank.

The lead lent Bt1.8 billion, while lenders Thanachart Bank and Government Savings Bank provided Bt700 million and Bt500 million respectively.

Proceeds are to support the company's expansion.

¬ Haymarket Media Limited. All rights reserved.

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