loan-week-july-1016

Loan week, July 10-16

A roundup of the latest syndicated loan market news.

Australia

AMT Management successfully secured a A$515 million multi-tranche facility on July 14 from a consortium of six local and international banks.

The deal comprises a A$190 million three-year tranche, a A$265 million five-year facility and a A$60 million seven-year term loan. Proceeds are to refinance an existing A$980 million non-recourse facility to fund a project in Australia.

Mandated lead arranger Calyon committed A$125 million. ANZ and Commonwealth Bank of Australia provided A$100 million each, while Westpac held A$90 million. Bank of Tokyo-Mitsubishi UFJ and Mizuho Corporate Bank each came in with A$50 million tickets.

The margin of the current refinancing for the three-year tranche is approximately 75bp above the existing level, while the weighted average fixed interest rate on the five- and seven-year portions has been increased by 170bp.

China

According to government announcements and other Chinese sources, it is understood that Anhui Huasu Holding's Rmb6 billion debt facility was completed on July 10 via sole mandated lead arranger Bank of China. Bank of Communications, China Construction Bank, Hua Xia Bank and Hui Shang Bank are joining as participants.

Proceeds are for project financing purposes.

India

A Rs5 billion 12.3-year term loan for Global Health has been signed through mandated lead arranger Yes Bank.

The lead gave Rs2.5 billion, while participant Allahabad Bank committed Rs830 million. Dena Bank and State Bank of Hyderabad ended up with Rs630 million each, while Punjab & Sind Bank joined in with Rs410 million. 

Proceeds are to support the development of the Medicity Hospital in Gurgaon, India.

A Rs10.1 billion 14.5-year credit for Meenakshi Energy was inked on July 9 through mandated lead arranger State Bank of India.

The deal is priced at 25bp below the State Bank Advance Rate and has a commitment fee of 120bp.

The lead provided Rs2.5 billion and participant Punjab National Bank gave Rs1.3 billion. Andhra Bank, Bank of India and State Bank of Hyderabad pledged Rs1 billion apiece, while United Bank of India ended up with Rs750 million and Punjab & Sind Bank took Rs550 million. Oriental Bank of Commerce, State Bank of Bikaner & Jaipur, State Bank of Mysore and State Bank of Travancore took Rs500 million each.

Proceeds are to fund the construction of a 270MW coastal thermal power project in Andhra Pradesh, India.

Prism Cement's Rs6 billion transaction was inked last week via sole mandated lead arranger and bookrunner Royal Bank of Scotland.

The seven-year financing is priced at an interest rate of 11% per annum.

Central Bank of India, Corporation Bank, Dena Bank, Oriental Bank of Commerce, Syndicate Bank and Union Bank of India came in as participants.

Proceeds are for capital expenditure purposes.

A Rs33.8 billion financing for Rosa Power Supply, sponsored by Reliance Power, was secured via sole bookrunner IDBI Bank on July 13.

The deal comprises three tranches - a Rs19.2 billion 14-year term loan, a Rs13 billion three-year letter of credit and a Rs1.6 billion three-year guarantee facility. 

Final allocations saw the lead lend Rs8.5 billion, while participant Punjab National Bank gave Rs5.3 billion. United Bank of India ended up with Rs3 billion and Karur Vysya Bank and Indian Bank took Rs2.3 billion and Rs2.1 billion respectively. Axis Bank, Oriental Bank of Commerce and Syndicate Bank committed Rs2 billion apiece, while Life Insurance Corp of India pledged Rs1.2 billion. Andhra Bank, Corporation Bank, State Bank of India, South Indian Bank and State Bank of Mysore provided Rs1 billion each. Vijaya Bank rounded off the syndicate with Rs500 million. 

Proceeds are to finance the development of a power plant in Shahjahanpur district of Uttar Pradesh, India.    

Vedanta Resources' $300 million two-year term loan is expected to be upsized and sealed shortly as a club deal via mandated lead arrangers ANZ, Axis Bank, Bank of Baroda, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Calyon, DBS and Deutsche Bank.

Proceeds are for general corporate purposes.

Malaysia

A M$200 million credit for Petra Innotech has been completed via mandated lead arrangers Affin Investment Bank and Oversea-Chinese Bank (Malaysia) on a club basis.

The five-year facility is divided into a one M$77 million tranche, two M$46 million term loans and a M$30 million revolving credit.

Proceeds will be used to part-finance the purchase of vessels and for working capital purposes.  

Oversea-Chinese Banking Corp has been mandated as the sole bookrunner for SapuraAcergy's $181 million debt package, while Affin Bank and Malayan Banking (Maybank) have been appointed as mandated lead arrangers.

The deal comprises a five-year performance bond, a four-year revolving credit and a four-year trade financing portio, although the exact split between the tranches has not been determined.

Syndication is expected to be launched by the end of next month. Proceeds are for general corporate purposes.

A M$480 million five-year debt package for Yeoh Tiong Lay & Sons has been completed as a club deal via mandated lead arrangers Malayan Banking (Maybank) and Oversea-Chinese Banking Corp.

Proceeds are for general corporate purposes. 

Singapore

Toll (Asia)'s S$150 million transaction was launched into syndication on July 13 via bookrunners DBS, Oversea-Chinese Banking Corp and United Overseas Bank.

The two-year loan has a margin of 195bp over the Singapore dollar swap rate. Lenders are invited to join in at two levels - mandated lead arrangers contributing S$25 million or above receive 55bp in fees, while arrangers with tickets between S$15 million and S$24 million earn 50bp. 

Proceeds are for capital expenditure purposes.

Taiwan

Hota Industrial MFG's NT$1.5 billion dual-tranche transaction inked in July 2008 was amended recently via bookrunners Bank of Taiwan, E.Sun Commercial Bank and Industrial Bank of Taiwan.

The original five-year revolving credit was split into a NT$1.2 billion tranche and a NT$300 million portion. The facility featured a spread of 80bp over the secondary CP rate.

Under the amendment, the benchmark has been changed to the 90-day or 180-day primary CP rate. A pre-tax floor rate of 2% has been introduced but if the debt-to-equity ratio is larger than 2.5 times, the pre-tax floor rate will step up to 3%. Financial covenants have been amended and additional securities have been introduced.

Syndication saw the leads contribute NT$200 million each, while Taichung Commercial Bank lent NT$150 million. Participants Chang Hwa Commercial Bank, Shin Kong Commercial Bank and Taiwan Business Bank held NT$120 million apiece, while Hua Nan Commercial Bank and Land Bank of Taiwan joined in with NT$100 million each. Mega International Commercial Bank and Taiwan Cooperative Bank pledged NT$70 million apiece, and Bank of Kaohsiung ended up with NT$50 million. 

Proceeds are for refinancing and working capital purposes.

A NT$1.59 billion five-year multi-tranche fundraising for Janfusun Fancyworld Corp sealed in July 2006 was amended last week via coordinating arrangers Agricultural Bank of Taiwan, Bank of Taiwan, First Commercial Bank, Mega International Commercial Bank, Taiwan Business Bank and Taiwan Cooperative Bank.

The 2006 deal comprises three term loans of NT$500 million, NT$700 million and NT$390 million. All tranches are priced at 114bp over the one-year time savings rate of Taiwan Cooperative Bank with a commitment fee of 15bp.

There were a number of amendments under the current agreement - the tenor has been increased from five years to 10 years, and the spread has been increased to 189bp over the one-year time savings rate of Taiwan Cooperative Bank with a pre-tax pricing floor of 2%. Other amendments include changes to the repayment schedule, the security and other covenants. One more guarantor has also been introduced.

Proceeds are to purchase facilities for the amusement park, refinance existing debt and for working capital purposes.

Lih Chih Development's NT$610 million three-year construction facility signed in May 2006 has been amended recently via sole bookrunner Taiwan Cooperative Bank.

The 2006 financing consists of three term loans of NT$325 million, NT$120 million and NT$165 million. The first tranche is priced at 108bp over the one-year time savings rate of Taiwan Cooperative Bank while tranches two and three are priced at 153bp over the same rate.

The tenor has now been extended by one year and the margin has been amended to 133bp for tranche one and to 203bp for the second and third tranches.

Allocations saw the bookrunner commit NT$488 million, while participant Bank of Panhsin joined in with NT$122 million.

Proceeds are for land acquisition and residential building construction purposes.

Papago International Resort (formerly the Day Light Four Season Garden Hot Spring Resort) has secured an add-on tranche of NT$78 million to the existing NT$450 million project financing facility signed in September 2006 via sole bookrunner Taipei Fubon Commercial Bank.

Secured by land and property, the new 4.2-year term-loan tranche is priced at 175bp over the one-year post office savings rate.

The bookrunner has received commitments from arrangers Taiwan Business Bank, Taiwan Cooperative Bank and managers Bank of Taiwan, Hua Nan Commercial Bank and Export-Import Bank of the Republic of China.

Proceeds are to construct the Papago International Resort in Chihshang of Taitung County.

On July 13, Taiwan High Speed Rail Corp (THSR) signed a tri-party memorandum of understanding with Bank of Taiwan and the Bureau of High Speed Rail under the Ministry of Transportation and Communications to restructure THSR's existing NT$380 billion debt facilities.

Bank of Taiwan is arranging a financial restructuring plan via syndicated loans for THSR, which is expected to be completed by the end of 2009. If the deal is successful, this will be the biggest syndicated facility ever in Taiwan.

Winbond Electronics Corp's NT$3.7 billion three-year term loan was sealed on July 15 via bookrunners Bank of Taiwan, Chinatrust Commercial Bank, First Commercial Bank and Land Bank of Taiwan. The deal was oversubscribed and upsized from NT$3 billion.

Pricing is split into three tiers based on the borrower's net profit margin ratio over the primary CP rate - if the ratio is below 0%, the margin is priced at 175bp; between 0% and 5% pays a spread of 160bp and if greater than 5%, the margin is 175bp. The floor for the primary CP rate is 1.5%.

Final allocations saw the bookrunners contribute NT$600 million each, while mandated lead arranger Taishin International Bank came in with NT$500 million. Participants Yuanta Commercial Bank gave NT$300 million, while Chang Hwa Commercial Bank and Taiwan Cooperative Bank lent NT$200 million apiece. EnTie Commercial Bank ended up with NT$100 million.

Proceeds are to refinance existing debt facilities.

A $183 million loan for Wingate Overseas Holdings originally signed in January 2007 was amended on July 14 via coordinating arranger BNP Paribas.

The loan amount has been reduced from $200 million and is now split into two tranches - a $119 million two-year term loan and a $64 million revolver priced at 110bp over Libor for the first year and at 125bp for the second year. 

BNP Paribas, Chinatrust Commercial Bank and DBS were bookrunners on the previous loan, while Bank of Tokyo-Mitsubishi UFJ, Cooperatieve Centrale Raiffeisen-Boerenleenbank, Nanyang Commercial Bank and Oversea-Chinese Banking Corp were mandated lead arrangers. BBVA, E.Sun Commercial Bank, Fortis and Hua Nan Commercial Bank came in as participants.

Proceeds are for debt repayment and for working capital purposes.

Vietnam

A $300 million amortising facility for Vinacomin is currently in the market via mandated lead arrangers and bookrunners Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Calyon, Credit Suisse, Natixis, Societe Generale and Standard Chartered Bank.

The five-year financing is priced at 350bp over Libor and proceeds are for general corporate purposes. Potential lenders will have until next week to revert.

PetroVietnam's $250 million three-year term loan is in syndication via sole mandated lead arranger and bookrunner Standard Chartered Bank.

The amortising loan pays a spread of 325bp over Libor. A few banks have committed to the deal and closing is expected in the coming week.

Proceeds are to repay existing equity facilities and for capital expenditure purposes.

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