Loan week, January 25-31

A roundup of the latest syndicated loan market news.

A A$434 million five-year and one-month amortising loan for LMENA No1, an SPV of Leighton Holdings, was inked on January 17 via bookrunners HSBC, Mashreqbank and Royal Bank of Scotland.

Final allocations saw mandated arrangers Abu Dhabi Commercial Bank commit $101 million while Royal Bank of Scotland contributed $98 million. HSBC provided $50 million while Mashreqbank held $45 million.

Senior lead arranger Caterpillar Financial Australia took $35 million while lead arrangers Commonwealth Bank of Australia and First Gulf Bank each took $25 million.

Arrangers National Bank of Oman lent $20 million and Ahli United Bank took $15 million. Abu Dhabi Investment and Gulf International Bank each ended up with $10 million.

The facility features a margin of 325bp over Libor and the funds are to support Leighton HoldingsÆ 45% stake in Dubai-based construction firm Al Habtoor Engineering.


ASE Assembly & Test (Shanghai)Æs $190 million five-year term loan is looking to close syndication by the end of this week via mandated leads DBS Bank and HSBC. The bookrunners are also currently in discussions to finalise documentation with the client.

The deal features a margin of 90bp over Libor and an average life of four years. Advanced Semiconductor Engineering (ASE) (Taipei) is the parent company.

The funds are to partly refinance existing debt and for general corporate purposes.

Zhuhai Zhongfu EnterpriseÆs Rmb2.75 billion dual tranche financing has so far received a good response from the market with a handful of banks waiting for credit approvals. Calyon, Chinese Mercantile Bank and Industrial & Commercial Bank of China are the mandated leads and bookrunners.

The loan is split into a RMB2.5 billion five year portion with an average life of 3.5 years and a RMB250 million three year revolver. The margin is priced at 105% of the PBOC rate for both tranches.

Proceeds are to refinance an existing debt facility.

Hong Kong

Syndication of Integrated Precision EngineeringÆs HK$250 million dual tranche financing is still ongoing via sole lead Standard Chartered.

The four year deal comprises a HK$75 million revolver and a HK$175 million credit that both feature a spread of 85bp over Hibor.

Banks have been invited on three levels. Arrangers committing HK$40 million or more receive 49.5bp in management fees for an all-in of 100bp over Hibor based on a blended average life of 3.3 years. Lead managers contributing between HK$30 million and HK$39 million gain 40bp while managers lending between HK$20 million and HK$29 million get 33bp for all-ins of 97bp and 95bp respectively.

The targeted deadline is set for February 5. Proceeds are to refinance an existing syndicated loan signed in 2005 and for corporate funding requirements.


A $300 million five year credit for DLF Global Hospitality has been launched into sub-underwriting via mandated lead arrangers ICICI Bank and Standard Chartered.

The loan features a spread of 250bp over Libor and an average life of four years.

Banks have been invited on two levels. Mandated lead arrangers contributing $50 million or above gain 15bp in underwriting fees and a participation fee of 80bp for an all-in of 273bp over Libor. They can also get the title with a proposed hold of $20 million. Lead arrangers lending between $40 million and $49 million (proposed hold of $20 million) receive 10bp in underwriting fees and 60bp in management fees for an all-in of 267bp.

One-on-one bank meetings were held over the week, with banks expected to revert by the end of next week on account of the looming Chinese New Year, with general syndication to follow soon after.

The funds, which signify the first acquisition loan for a real estate firm from India, are to finance the acquisition of Aman Resorts from Silverlink Holdings.
New Zealand

Sole lead HSBC completed a Ç11.25 million one-year standby facility for Sealord Group on January 30.

Allocations saw the lead and participants ANZ and Rabobank commit Ç3.75 million apiece.


A $100 million five-year fundraising for Philippine Long Distance Telephone Co has been inked on a club basis via a consortium of seven banks.

The funds, which are to support the borrowerÆs capital expenditure requirements, saw participation from Standard Chartered, Bank of Tokyo-Mitsubishi UFJ, DBS Bank, ING Bank, Mizuho Corporate Bank, Sumitomo Mitsui Banking Corp and Norddeutsche Landesbank.


CapitaRetail China Incubator Fund 1Æs $55 million two-year fundraising has been completed via mandated lead arrangers Citic Ka Wah Bank, Royal Bank of Scotland and Standard Chartered Bank. Standard Chartered is the original mandated arranger and the sole bookrunner.

Allocations for Express Offshore Transport and Miclyn OffshoreÆs $261 million multi-tranche LBO financing has been finalised via original mandated leads Natixis, United Overseas Bank and WestLB.

Allocations saw United Overseas Bank and WestLB contribute $32.5 million each while Natixis committed $27 million. Bank of Scotland (International), Chinatrust Commercial Bank, Industrial & Commercial Bank of China (Asia), Oversea-Commercial Banking Corp and Standard Bank joined the transaction as equal-status arrangers, holding $19 million apiece.

Senior lead managers AMP Capital Investors, Aozora Bank and Mizuho Corporate Bank each took $10 million while First Commercial Bank (Singapore) and Nordkap Bank lent $6 million apiece.

The funds are to support the Macquarie Group-led leveraged buyout of the borrowers which will be merged to form Miclyn Express Offshore. The signing ceremony is expected to take place mid-February.

A $200 million dual tranche credit for Fraser & Neave (F&N) was signed on Monday (January 28) via mandated leads and bookrunners Bank of Tokyo-Mitsubishi UFJ and DBS Bank.

The loan comprises a $150 million five-year term loan and a $50 million seven-year revolver.

Syndication saw Banco Bilbao Vizcaya Argentaria and Natixis coming in as equal-status arrangers while Intesa Sanpaolo joined in as a co-arranger. Final allocations have yet to be disclosed.

Visiting the market again is Tech Semiconductor via a $600 million debt package. The facility has been launched into syndication via mandated arrangers and bookrunners ABN AMRO, Citi, DBS Bank and Oversea-Chinese Banking Corp.

The amortising term loan features a margin of 250bp over Sibor with a door-to-door maturity of 4.25 years. The average life is 2.85 years.

Fees to the market are on three levels. Mandated lead arrangers contributing $30 million and above receive 75bp flat, arrangers committing between $20 million and $29 million earn 70bp and lead managers providing $10 million to $19 million hold 65bp.

The funds are to refinance an existing debt facility signed in 2005 and for capital expenditure requirements. This is the companyÆs fifth consecutive refinancing since 2000.


Syndication of Dragon Steel CorpÆs NT$57 billion 10-year fundraising has closed via a consortium of 12 banks û Agricultural Bank of Taiwan, Bank of Taiwan, Cathay United Bank, E.Sun Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank, Industrial Bank of Taiwan, Land Bank of Taiwan, Mega International Commercial Bank, Taipei Fubon Bank, Taiwan Business Bank and Taiwan Cooperative Bank. The bookrunners are Bank of Taiwan, First Commercial Bank, Land Bank of Taiwan and Taiwan Cooperative Bank.

The deal pays a spread of 40bp over the secondary CP rate, has a grace period of 3.5 years and is secured by the companyÆs factory and machinery.

Allocations are currently being finalised with Export-Import Bank of the Republic of China still awaiting final credit approval. The signing date will be after the Lunar New Year, towards the end of February.

Tainery TechÆs NT$2.3 billion multi-tranche fundraising has been singed via a syndicate of six banks. The deal was downsized from NT$4.8 billion.

The loan comprises a NT$1.3 billion five-year credit, a NT$200 million five-year revolver and an NT$800 million five-year portion.

Allocations saw mandated leads Bank of Taiwan providing NT$800 million while Taiwan Business Bank contributed NT$600 million. Co-arrangers Land Bank of Taiwan and Mega International Commercial Bank held NT$300 million each. Managers Taiwan Cooperative Bank took NT$200 million while Shanghai Commercial & Savings Bank ended up with NT$100 million.

The deal marks the borrowerÆs first time in the debt markets. Proceeds are to finance the purchase of silicon and equipment for the production of solar batteries.


An $85 million three-year credit for Hyosung Vietnam was completed on Tuesday (January 29) via sole mandated lead arranger Korea Development Bank. The deal was oversubscribed and upsized from $70 million due to a good market response.

The bullet term loan pays a spread of 135bp over Libor.

Allocations saw the mandated lead providing $30 million while Woori Bank took $19 million as a co-arranger. Coming in as senior managers were Daegu Bank, Hana Bank, Korea Exchange Bank and Shinhan Bank holding $9 million apiece.

Proceeds are for general corporate purposes.
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