Loan week, January 4-10

A roundup of the latest syndicated loan market news.

A A$500 million five-year financing for Iluka Resources has been launched into syndication via mandated lead arrangers and bookrunners ABN AMRO and Westpac.

A roadshow is expected to be held next week in Perth. The target closing date is slated for the end of January.

A A$2.3 billion LBO facility for Ned Group Holdings closed senior syndication at the end of December via six original mandated arrangers who also funded the loan on January 8. ANZ, Westpac, Calyon, Sumitomo Mitsui Banking Corp, Mizuho Corporate Bank and ABN AMRO are the leads in the deal.

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

General syndication is slated to be launched in the third week of January. The funds are to support Carlyle Group and National HireÆs acquisition of Coates Hire.

Primary HealthcareÆs credit facility led by ABN AMRO, Calyon, Credit Suisse, Deutsche Bank and National Australia Bank is still in senior syndication due to a few issues with the loan structure. The exact loan amount is yet to be determined but it is understood to be in the range of A$2.5 billion to A$2.6 billion.

The funds are to support the acquisition of Symbion Health.


Syndication of ASE Assembly & Test (Shanghai)Æs $190 million five-year term loan has so far received five commitments. DBS Bank and HSBC are leading the facility.

The financing 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.

A $68 million five-year dual tranche fundraising for Hubei Yadong Cement has been completed via mandated arrangers Citi and Sumitomo Mitsui Banking Corp with Citi solely running the books.

The loan is split equally into a renminbi tranche and a US dollar portion with margins of 90% of the PBOC rate and 50bp over Libor, respectively.

Syndication saw five banks come in as lead managers û Bangkok Bank, Bank of China (Wuhan Branch), Hang Seng Bank, Mizuho Corporate Bank and United Overseas Bank. Proceeds are for capital expenditure purposes.

Swire PropertiesÆ Rmb2.4 billion dual tranche three-year bullet loan is still in general syndication as regulatory changes made by the government has delayed the process. The mandated leads are BNP Paribas, HSBC and Standard Chartered Bank.

The credit comprises a Rmb2.2 billion facility and a Rmb200 million portion. Both tranches offer a spread of 110bp over the PBOC rate.

Banks have until January 18 to revert and proceeds are for working capital purposes.

TCC Guigang Cement CorpÆs Rmb1.1 billion equivalent dual tranche credit is still in syndication due to slow responses over the festive period. BNP Paribas, Calyon, Standard Chartered Bank and Oversea-Chinese Banking Corp are the mandated lead arrangers and bookrunners with Bank of China joining in as an equal-status lead arranger.

The loan is split into a Rmb700 million five-year portion priced at 31bp over Libor and a Rmb360 million three-year revolver priced at 90% of the PBOC rate. The two tranches have a two-year extension option.

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

Hong Kong

Wheelock Properties (HK) Æs HK$6.0 billion dual tranche financing was launched into senior syndication on January 9 via sole lead arranger and bookrunner Standard Chartered.

The credit comprises a HK$5.5 billion five-year term loan and a HK$500 million revolver with both tranches featuring spreads of 50bp over Hibor.

Banks have been invited to join as equal status arrangers with contributions of HK$1.0 billion or above receiving 15bp in underwriting fees. They also have a take-and-hold option of HK$600 million for 7.5bp. Both offer 28.5bp in management fees.

The targeted close for banks to revert is January 25.


ICICI Bank has launched a $200 million 13-year fundraising into syndication for Delhi International Airport marking the debut of IndiaÆs booming airport sector in the international debt market.

The debt package is part of a $1.25 billion facility that is being borrowed and comprises a $150 million loan that is being provided by ICICI Bank and Abu Dhabi Commercial Bank; a $900 million portion that was entirely syndicated domestically and was completed on December 3; and the $200 million financing that is currently in the market.

Proceeds are to fund a project which entails the upgrade of existing terminals, development of new integrated facilities and to increase passenger capacity. Banks have until February to respond.


A $750 million dual tranche financing for PT Adaro and Coaltrade International Services is still in syndication via mandated lead arrangers Bank of Tokyo-Mitsubishi UFJ, DBS Bank, Standard Chartered Bank, Sumitomo Mitsui Banking Corp and United Overseas Bank. DBS Bank, Sumitomo Mitsui Banking Corp and United Overseas Bank are acting as the bookrunners.

The facility was funded in early December.

The credit is split between a $650 million five-year amortising term loan, with an average life of 3.54 years and a $100 million three-year revolver. The deal is priced at 130bp over Libor for the onshore portion and 120bp for the offshore tranche.

So far, three banks have joined in as equal-status arrangers. The proceeds are to refinance an existing $200 million loan signed in March 2007 and a $400 million high-yield bond.


An $85 million 364-day credit for AmInvestment Bank has closed via a consortium of six banks.

The deal saw the participation of bookrunners ANZ, Bank of Tokyo-Mitsubishi UFJ and Standard Chartered. Maybank came in as a mandated lead arranger while Public Bank held the title of lead arranger. Oversea-Chinese Banking Corp joined as an arranger.

Binariang GSMÆs $1.2 billion seven-year amortising loan has so far received commitments from Calyon, ING, Mizuho Corporate Bank and Oversea-Chinese Banking Corp who have joined as equal-status arrangers. The original mandated arrangers are ABN AMRO, Bank of Tokyo-Mitsubishi UFJ, DBS Bank, HSBC, Sumitomo Mitsui Banking Corp and Standard Chartered Bank.

The deal features a spread of 130bp over Libor. Two banks are processing their credit approvals and are expected to join by today (January 11) to close the facility.

The funds are to refinance a $7.1 billion bridge facility that was signed on May 3, 2007.


Fraser & Neave (F&N) Æs $200 million dual tranche credit has closed via mandated arrangers and bookrunners Bank of Tokyo-Mitsubishi UFJ and DBS Bank.

The loan is split into a $150 million five-year term loan and a $50 million seven-year revolver.

Allocations have yet to be finalised but at least three commitments have so far been received. Signing is slated to take place early next week.

Hyflux Water Trust ManagementÆs $66 million dual tranche three-year revolver has been launched into general syndication via mandated lead arrangers Natixis, CIMB and Oversea-Chinese Banking Corp. Natixis and CIMB are the bookrunners.

The deal comprises a $6 million tranche solely provided by Natixis and a $60 million portion that pays a spread of 98bp over one-, three- or six-month Libor as selected by the borrower.

Banks have been invited on two levels. Co-arrangers providing $7.5 million and above receive 20bp in upfront fees for an all-in of 105bp over Libor while lead managers lending between $3 million and $7.5 million get 15bp for an all-in of 103bp over Libor.

The deadline for banks to revert is January 23 with the signing ceremony slated to take place in the week of February 11.

SupernovaÆs S$200 million leveraged buy-out facility for the acquisition of Seksun Corp has so far received commitments from First Commercial Bank and Oversea-Chinese Banking Corp. The mandated leads and bookrunners are Chinatrust Commercial Bank, DBS Bank and United Oversea Bank (Asia). The financing is sponsored by Citi Venture Capital International.

The fundraising comprises three tranches û a short term loan, a revolving credit and a term loan facility with an average life of 3.25 years.

The loan is to be funded by the three mandated leads as early as next week whilst several other banks are currently processing commitments. A site visit was held last week. Syndication is expected to close by the end of the month.

Syndication of Marina Bay SandsÆ S$5.5 billion facility is still going strong and a handful of banks have already joined in general syndication. The original mandated lead arrangers and bookrunners were DBS Bank, Goldman Sachs, Oversea-Chinese Banking Corp and United Overseas Bank.

The financing comprises S$2.0 billion and S$2.8 billion term loans, 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.

Prior to launch, the bookrunners expanded the group which saw nine other banks join in as equal-status arrangers, including Citi, Lehman Brothers and Merrill Lynch which are also acting as bookrunners. Senior syndication has already seen 15 banks from the original 17 participants joining in.

General syndication is slated to close by the end of January. Proceeds are to refinance an existing bridge facility signed on August 2006 and for working capital purposes.


Syndication of a NT$10.7 billion four-year LBO financing for Cosmos Bank Taiwan is still ongoing and has so far received commitments from First Commercial Bank, Land Bank of Taiwan, Kaohsiung Bank, Taiwan Business Bank and Taiwan Cooperative Bank. Bank of Taiwan is the original mandated lead arranger.

The margin is 250bp over the secondary CP rate. Proceeds are to support the SAC Private Equities and General Electric-led leveraged buyout of the borrower.

Nanya Technology CorpÆs NT$22.0 billion five-year term loan was signed on Wednesday (January 9) via a consortium of eight mandated arrangers - Bank of Tokyo-Mitsubishi UFJ, Cathay United Bank, E Sun Commercial Bank, ING Bank, Standard Chartered Bank, Sumitomo Mitsui Banking Corp, Taipei Fubon Commercial Bank and Yuanta Commercial Bank. All banks with the exception of Bank of Tokyo-Mitsubishi UFJ, ING Bank and Yuanta Commercial Bank were also acting as the bookrunners.

The deal carries a margin of 35bp over the secondary CP rate and a commitment fee of 10bp.

Final allocations saw Taipei Fubon Commercial Bank committing NT$3.3 billion while Cathay United Bank and E.Sun Commercial Bank held NT$3.0 billion apiece. Standard Chartered Bank and Sumitomo Mitsui Banking Corp contributed NT$2.5 billion each while Yuanta Commercial Bank provided NT$2.3 billion. Bank of Tokyo-Mitsubishi UFJ and ING Bank took NT$2.0 billion and NT$1.5 billion respectively.

Coming in as arrangers were Hua Nan Commercial Bank holding NT$1.0 billion while Export-Import Bank of Taiwan and Taishin International Bank gave NT$600 million and NT$300 million respectively.

Proceeds are to fund the purchase of a wafer plant specialising in the production of DRAM memory chips.

A NT$5.0 billion five-year fundraising for SinoPac Financial HoldingsÆ was inked on January 2 via a syndicate of nine banks.

Final allocations saw mandated lead arrangers Hua Nan Commercial Bank, Standard Chartered Bank, Taipei Fubon Commercial Bank, Taishin International Bank and Taiwan Cooperative Commercial Bank each committed NT$690 million while First Commercial Bank held NT$430 million.

Lenders Taiwan Shin Kong Commercial Bank took NT$520 million while Chang Hwa Bank provided NT$430 million and Agricultural Bank of Taiwan ended up with NT$170 million.


A $270 million eight-year credit for Vietnam Oil and Gas Group was completed on December 27 via lead arrangers and bookrunners ANZ, BNP Paribas and Natixis.

The deal was oversubscribed but was not upsized and around 14 banks joined in syndication. Allocations are currently being finalised.

Proceeds are to support the development and construction of the Power Plant, Nhon Trach 1.

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