loan-week-january-814

Loan week, January 8-14

A roundup of the latest syndicated loan market news.

Australia

BBP Finance Australia’s A$2.8 billion multi-tranche debt package has been completed via mandated lead arrangers ANZ, BNP Paribas, Commonwealth Bank of Australia, Dexia, HVB Australia, National Australia Bank, Natixis, Societe Generale, Suncorp-Metway and WestLB, with Mizuho Corporate Bank joining in as a participant.

The fundraising comprises A$1.6 billion and A$960 million term loans, a A$100 million working capital facility, an A$80 million letter of credit and a A$60 million portion.

Proceeds are to amend and refinance existing debt and for working capital purposes.

A A$188 million 2.75-year transaction for Dental Corp has been inked via sole mandated lead arranger and bookrunner National Australia Bank.

The deal is split into A$86 million, A$57 million, A$41 million and A$2 million term loans, and a A$2 million revolving facility.

The lead pledged A$78 million, while arrangers Commonwealth Bank of Australia and Westpac took A$40 million each. Bank West rounded out the group with a hold of A$30 million.

Proceeds are for general corporate and working capital purposes.

Hong Kong

Leo Paper Bags Manufacturing has successfully secured a HK$460 million four-year dual-tranche financing via sole mandated lead arranger and bookrunner Hang Seng Bank. ANZ, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas and KBC Bank are the coordinating arrangers while Bank Sinopac, Chang Hwa Commercial Bank, Hua Nan Commercial Bank, Industrial Bank of Taiwan and Shanghai Commercial & Savings Bank acted as arrangers.

Guaranteed by Leo Paper Products, the debt was divided into a HK$288 million term loan and a HK$172 million revolving credit.

Proceeds are to refinance a HK$600 million self-arranged club deal signed in June 2006.

A $583 million four-year transaction for Meadville Enterprises (HK) has been sealed via sole mandated lead arranger HSBC along with participants Bank of East Asia, Chong Hing Bank, CITIC Ka Wah Bank, DBS Bank, Hang Seng Bank and Standard Chartered Bank.

The facility comprises a $350 million term loan, an $88 million revolver, an $80 million letter of credit and a $65 million trade finance facility.

Proceeds are to repay outstanding debt and for working capital purposes.

India

Aircel’s Rs29 billion one-year secured term loan was completed last week via sole mandated lead arranger and bookrunner IDBI Bank.

The lead committed Rs10 billion, while participants Bank of Baroda and Canara Bank each offered Rs5 billion and UCO bank took Rs3 billion. Bank of Maharashtra, Dena Bank and Federal Bank held Rs2 billion apiece.

Proceeds are for working capital and general corporate purposes.

A $200 million three-year term loan has been concluded for Jarpeno via sole bookrunner Sumitomo Mitsui Banking Corp. Bank of Nova Scotia, Bank of Tokyo-Mitsubishi UFJ, Chinatrust Commercial Bank and Mizuho Corporate Bank joined in as equal status lead arrangers.

Proceeds are for general corporate purposes.

Jhabua Power’s Rs21.8 billion project financing has been inked via sole mandated lead arranger Axis Bank.

The debt package consists of a Rs21.8 billion 14-year term loan and a Rs4 billion letter of credit contributed by Axis Bank and Union Bank of India, which will mature during the construction period and be converted into a term loan.

Syndication saw Union Bank of India holding Rs3 billion, while UCO Bank committed Rs2.2 billion. Axis Bank and Bank of India contributed Rs2 billion each and Life Insurance Corp of India took Rs1.8 billion. Corporation Bank, Punjab National Bank and United Bank of India joined in with approximately Rs1.8 billion each, while State Bank of Patiala pledged Rs1.4 billion. Oriental Bank of Commerce, State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Indore, State Bank of Mysore and State Bank of Travancore ended up with Rs700 million apiece.

Proceeds are for the construction of a thermal power plant in District Seoni, Madhya Pradesh.

Indonesia

PT Summit Oto Finance’s $125 million term loan facility has been signed via sole bookrunner RBS.

The facility is split into a $49 million five-year tranche and a $76 million three-year portion. The deal saw multilateral agencies FMO and DEG, Cordiant, Metropolitan Bank & Trust & RHB Investment Bank joining in as mandated lead arrangers. Bank Negara Indonesia, Krung Thai Bank, Mega International Commercial Bank and Taishin International Bank came in as lead arrangers.

Proceeds are for general corporate purposes.

Malaysia

A M$327 million Islamic financing for Prolintas Expressway was sealed last week via lead arranger Bank Islam Malaysia.

The lead contributed M$137 million, while Shariah Advisor Kuwait Finance House (Malaysia) committed M$70 million. ECOCAP Islamic Bank held M$70 million and Affin Islamic Bank joined in with M$50 million. MIMB Investment Bank acted as the facility agent.

Proceeds are to refinance an existing facility used to finance the purchase of the Guthrie Corridor Expressway.

Singapore

Mapletree Trustee, on behalf of Mapletree Singapore, has secured a S$90 million dual-tranche club deal via Bank of East Asia, Qatar National Bank and Standard Chartered Bank.

The three-year financing is split between S$54 million and S$36 million term loans that are priced at 300bp over the Singapore dollar swap offer rate.

Proceeds are to finance development costs and for refinancing purposes.

Taiwan

Mobiletron Electronics’ NT$1.2 billion five-year fundraising has been completed via coordinating arrangers Chang Hwa Commercial Bank, E.Sun Commercial Bank, Land Bank of Taiwan, Ta Chong Bank, Taiwan Business Bank and Taiwan Cooperative Commercial Bank.

The transaction comprises a NT$360 million term loan, a NT$540 million revolver and a NT$300 million CP guarantee facility. The first two tranches are priced at 85bp over the 90-day secondary CP rate with an interest rate floor of 1.95%, while the third tranche features a guarantee fee of 80bp.


Final allocation
s saw the leads contribute NT$130 million each, with the exception of Chang Hwa Commercial Bank, which took NT$300 million. Manager Bangkok Bank took NT$110 million, and  participants Chinatrust Commercial Bank and Hua Nan Commercial Bank held NT$80 million and NT$60 million respectively.

Proceeds are for debt repayment and working capital purposes.


A NT$1.5 billion transaction for Sanyang Industry was signed in early January via sole bookrunner Land Bank of Taiwan.


Guaranteed by the chairman, the five-year term loan is priced at 170bp over the average one-year savings rate of
Bank of Taiwan, Chang Hwa Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank, Land Bank of Taiwan and Taiwan Cooperative Bank.

Final allocations saw the lead contribute NT$500 million, while joint arrangers Agricultural Bank of Taiwan lent NT$300 million. Ta Chong Bank committed NT$300 million, and participants First Commercial Bank and Bank of Taiwan ended up with NT$200 million and NT$150 million respectively.


Proceeds are to refinance existing debt. 

Taiwan Fertilizer
’s NT$7 billion dual-tranche financing is in the market via bookrunners First Commercial Bank, Mega International Commercial Bank and Taipei Fubon Commercial Bank.

The debt package is split into two seven-year term loans of NT$5 billion and NT$2 billion respectively. The facility is priced at 50bp over the 90-day secondary CP rate, with a commitment fee of 5bp and an interest rate floor of 1.4%. It also features a three-year extension option with an extension fee of 5bp. 

Syndication is expected to close by the end of February. Proceeds are for capital expenditure purposes.

Taiwan High Speed Rail Corp’s NT$382 billion mega refinancing was signed on January 8 via sole bookrunner Bank of Taiwan.

The debt package comprises a NT$308.3 billion tranche A, a NT$4.5 billion 22-year guarantee facility tranche B, a NT$49.7 billion 10-year term loan tranche C and a NT$19.5 billion term loan tranche D.

Guaranteed by the government, tranche A is split further into a NT$130 billion 22-year term loan tranche A1, a NT$178.3 billion 22-year term loan tranche A2 and a NT$27 billion guarantee facility tranche A3. However, the total outstanding amount of Tranche A1, A2 and A3 cannot exceed NT$308.3 billion.

Priced over the one-year post office savings rate, tranche A1 and A2 offers a margin of 10bp in year one to two and increases in 10bp increments up to year eight. The spread rises to 108bp from year nine onwards. There are interest rate ceilings of 1.2% in year one, 1.3% in year two, 1.5% in year three, 1.9% in year four, 2.3% in year five and 2.8% in year six. However, the difference between the interest rate ceilings and the margin will be repaid by the borrower in five years. 

On the other hand, tranche A3 offers an annual guarantee fee of 77.5bp while the unguaranteed tranche B features an annual guarantee fee of 80bp. The last two term loan tranches, C and D, are priced at 80bp over the one-year post office savings rate.

Final allocations saw the bookrunner, Bank of Taiwan, take NT$74.3 billion, while participants Mega International Commercial Bank committed NT$68.9 billion. Taiwan Cooperative Commercial Bank pledged NT$56 billion and Land Bank of Taiwan contributed NT$45.9 billion. First Commercial Bank and Taiwan Business Bank joined in with approximately NT$37 billion each, while Chang Hwa Commercial Bank and Hua Nan Commercial Bank held NT$35.5 billion and NT$26.6 billion respectively.

Proceeds are to refinance a NT$323.3 billion project financing signed in February 2000, a NT$40.7 billion facility signed in July 2006 and a $300 million convertible bond facility.

Vietnam

A $130 million 18-month term loan for Saigon International Terminals Vietnam has been signed via mandated lead arrangers Bank of Tokyo-Mitsubishi UFJ, HSBC, Natixis and Oversea-Chinese Banking Corp as a club deal.

The lenders committed $33 million each and the loan features a bullet repayment schedule.

Proceeds are to refinance existing credit facilities.

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