Loan week, January 7-13

A roundup of the latest syndicated loan market news.

Australia

Avoca Resources’ A$165 million multi-tranche revolver has been inked as a club deal with mandated leads BNP Paribas and Commonwealth Bank of Australia.

The deal consists of a A$50 million three-year tranche, a A$100 million nine-month portion, and a A$15 million three-year facility.

Proceeds are for general corporate purposes.

China


Yantai Wanhua Polyurethanes’ $52 million two-year standby letter of credit facility was signed in late December on a club basis via mandated lead arrangers Sumitomo Mitsui Banking Corp and Westpac.

Proceeds are for general corporate purposes.

Hong Kong


Henderson Land Development has successfully obtained a HK$10.0 billion three-year financing via a consortium of 13 mandated lead arrangers. The deal was heavily oversubscribed and upsized from HK$5.0 billion.

The three-year deal consists of a term loan and a revolving credit facility that is priced at 62.5bp over Hibor.

The 13 mandated lead arrangers were Agricultural Bank of China (Hong Kong), ANZ, Bangkok Bank (Hong Kong), Bank of China (Hong Kong), Bank of Tokyo-Mitsubishi UFJ, Chong Hing Bank, HSBC, Mizuho Corporate Bank, Oversea-Chinese Banking Corp (Hong Kong), Standard Chartered Bank (Hong Kong), Sumitomo Mitsui Banking Corp, United Overseas Bank and Wing Lung Bank.

Proceeds are for general corporate purposes.

India

EON Kharadi Infrastructure’s Rs5.0 billion term loan has been completed via sole bookrunner Standard Chartered Bank.

The financing consists of a Rs3.8 billion nine-year tranche and a $1.2 billion two-year portion.

Final allocations saw the sole lead lend Rs2.4 billion, while participants Bank of Baroda and Punjab National Bank came in with Rs750 million each. IDBI Bank gave Rs600 million and Vijaya Bank contributed Rs500 million.

Proceeds are to support the development of a special economic zone at Pune and for debt repayment purposes.

A $175 million dual-tranche facility for Gujarat NRE Coking Coal has been sealed via sole bookrunner and mandated lead arranger Axis Bank.

The term facility is split into a $75 million 3.8-year tranche – featuring a margin of 400bp over Libor; and a $100 million 5.5-year portion paying 450bp over Libor.

Syndication saw AfrAsia Bank, Bank of Baroda, DBS, Export-Import Bank of India, Punjab National Bank, State Bank of India, and State Bank of Mauritius join as participants.

Proceeds are to support the expansion of two mines in New South Wales, Australia.

A Rs6.6 billion 18-year term loan for GVK Deoli Kota Expressway has been concluded via sole bookrunner and mandated lead arranger Yes Bank.

The debt package was fully underwritten and will be repaid in 58 quarterly installments after a 3.5-year grace period.

Indian Overseas Bank, India Infrastructure Finance, and Punjab National Bank came in as participants.

Proceeds are to support the construction of a four-lane expressway from Deoli to Kota, in the Indian state of Rajasthan.

Hindustan Petroleum Corp
has secured a $400 million five-year fundraising via sole bookrunner State Bank of India.

The five-year term loan is priced at 149bp over three-month Libor.

Final allocations saw the sole lead lend $263 million, while mandated lead arranger Bank of Tokyo-Mitsubishi UFJ gave $50 million. Lead arrangers Indian Bank (Singapore) committed $30 million and State Bank of India (Canada) provided $20 million. Bank of Taiwan (Singapore) gave $12 million, while Hua Nan Commercial Bank (Singapore) and manager Taishin International Bank held $10 million apiece. Export-Import Bank of the Republic of China ended up with $5 million.

Proceeds are for general corporate purposes.

Indonesia

A $30 million-equivalent financing for Profesional Telekomunikasi Indonesia has been signed as a club deal via mandated lead arrangers ABN Amro (Jakarta), DBS Bank, Oversea-Chinese Banking Corp and Standard Chartered Bank.

The 4.5-year term loan is priced between 325bp and 375bp over Libor, based on a net debt-to-running Ebitda ratio.

Proceeds are for acquisition purposes.

Perusahaan Listrik Negara secured a Rp1.1 trillion project financing on a club basis via mandated lead arrangers Bank Central Asia, Bank Mandiri, Bank Negara Indonesia and Bank Rakyat Indonesia.

The 10-year term loan will be repaid quarterly after a three-year grace period and offers a commitment fee of 50bp.

Proceeds are to finance a cable project in Java, Indonesia.

Malaysia


Malaysia Airline System secured another $33 million 13-year term loan in December after obtaining a similarly structured deal in October via sole bookrunner BNP Paribas (Tokyo) with DBS (Tokyo) joining in at a lower tier.

Proceeds are for aircraft financing purposes.

New Zealand

Property for Industry’s NZ$150 million five-year revolver has been completed as a club deal via mandated lead arrangers ANZ and Commonwealth Bank of Australia.

Proceeds are for general corporate purposes.

Philippines

AYC Finance’s $260 million six-year term loan has been sealed via mandated lead arrangers ANZ, Bank of Tokyo-Mitsubishi UFJ, Citibank, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp.

The parent Ayala Corp is guaranteeing the club facility. Proceeds are for general corporate purposes.

Taiwan

Au Optronics Corp’s NT$45.0 billion term loan was completed last week via a consortium of 29 lenders.

The five-year loan is priced at 52bp over the 90-day primary CP rate with a 15bp commitment fee.

Syndication saw Bank Sinopac, Bank of Taiwan, Bank of Tokyo-Mitsubishi UFJ, Cathay United Bank, Chinatrust Commercial Bank, DBS Bank, E Sun Commercial Bank, First Commercial Bank, Land Bank of Taiwan, Mega International Commercial Bank, SMBC, Taipei Fubon Commercial Bank, Taishin International Bank and Taiwan Cooperative Bank joining in as mandated lead arrangers. Agricultural Bank of Taiwan, Bangkok Bank, Bank Taiwan Life Insurance, Chang Hwa Commercial Bank, China Development Industrial Bank, Hua Nan Commercial Bank, Industrial Bank of Taiwan, Jih Sun International Bank, Shanghai Commercial & Savings Bank, Ta Chong Bank, Taichung Commercial Bank, Taiwan Business Bank, Taiwan Life Insurance, Taiwan Shin Kong Commercial Bank and Yuanta Commercial Bank came in as participants.

Proceeds are for repaying existing debt and to provide for working capital requirements.

A NT$2.2 billion three-year facility for Boltun Corp was signed last week via bookrunners Bank Sinopac, Chinatrust Commercial Bank, E Sun Commercial Bank, Mega International Commercial Bank and Taipei Fubon Commercial Bank. The deal was oversubscribed and upsized from NT$1.8 billion.

The facility is split into a NT$1.2 billion tranche, a NT$768 million revolver and a NT$240 million commercial paper guarantee.

Bank of Taiwan, Chang Hwa Commercial Bank, China Bills Finance Corp, First Commercial Bank, Hua Nan Commercial Bank, Hua Nan Commercial Bank, International Bills Finance Corp, Land Bank of Taiwan, Mega Bills Finance Corp, Shanghai Commercial & Savings Bank, Ta Chong Bank, Taichung Commercial Bank, Taishin International Bank, Taiwan Business Bank, Taiwan Cooperative Bank and Taiwan Shin Kong Commercial Bank joined in at lower tiers.

Proceeds are for refinancing existing indebtedness and working capital purposes.

Ho Tung Chemistry secured a NT$2.8 billion five-year loan last week via mandated leads Agricultural Bank of Taiwan, First Commercial Bank, Hua Nan Commercial Bank, Land Bank of Taiwan, Tachong Bank, Taichung Commercial Bank, Taiwan Business Bank and Taiwan Shin Kong Commercial Bank. The deal was upsized from NT$2.5 billion.

The loan comprises a NT$2.0 billion term loan and a NT$750 million revolver, which are priced at 90bp and 100bp over the secondary CP rate.

Proceeds are for refinancing an existing NT$2.8 billion loan signed in July 2009 and to provide for working capital requirements.

Sole bookrunner Taiwan Cooperative Bank has completed a NT$750 million five-year transaction for Leatec Fine Ceramics.

The facility features a spread of 120bp to 132bp over the 90-day secondary CP rate.

Syndication saw Chang Hwa Commercial Bank, Hua Nan Commercial Bank, Mega International Commercial Bank, Shanghai Commercial & Savings Bank, Taichung Commercial Bank and Taipei Fubon Commercial Bank come in as managers.

Proceeds are for refinancing existing indebtedness, working capital requirements and capital expenditure.

A NT$19.1 billion term loan for Mandarina Crown Hotel was launched last week via sole mandated lead arranger Taiwan Cooperative Bank.

The term loan is divided into NT$6.3 billion and NT$5.3 billion five-year tranches for refinancing and NT$6.7 billion and NT$800 million seven-year tranches for capital expenditure and working capital purposes.

Secured by land and buildings, the five-year and seven-year tranches are priced at 106bp and 91bp over the post office savings rate respectively.

Syndication is expected to close in mid-February.

Ta Chen Stainless Pipe’s NT$4.8 billion five-year debt package has been signed via bookrunners Bank of Taiwan, Chang Hwa Commercial Bank, First Commercial Bank, Land Bank of Taiwan, Mega International Commercial Bank, Taichung Commercial Bank, Taipei Fubon Commercial Bank, Taiwan Business Bank and Taiwan Cooperative Bank.

The debt is split into a NT$2.8 billion revolving credit facility, a NT$1.5 billion term loan and a NT$500 million guarantee facility.

Bank of Panhsin, China Bills Finance, China Development Industrial Bank, Hua Nan Commercial Bank, International Bills Finance, Jih Sun International Bank, Mega Bills Finance, Taiwan Shin Kong Commercial Bank and Sunny Bank joined in at junior levels.

Proceeds are for repaying debt and working capital purposes.

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