loan-week-july-1117

Loan week, July 11-17

A roundup of the latest syndicated loan market news.
Australia

Singapore Power SPV SPI (Australia) AssetsÆ A$3.4 billion three-year facility was signed on July 15 and was oversubscribed following a blowout response from the market. The original mandated arrangers and bookrunners are ANZ, BNP Paribas, Commonwealth Bank of Australia, Royal Bank of Scotland and Westpac. The deal attracted commitments close to A$4 billion and was upsized from the original A$2.8 billion due to the overwhelming response.

The margin is priced at 85bp over BBSY and is tied to the ratings grid, meaning that an increment of 5bp will be added each time the ratings of the borrower decreases. Singapore Power is acting as the guarantor.

Syndication saw a total of 27 banks joining in. Eight of those, namely Bank of Tokyo-Mitsubishi UFJ, Bank of Nova Scotia, Calyon, Dexia, Mizuho Corporate Bank, Sumitomo-Mitsui Banking Corp, Svenska Handelsbanken and TD Securities, came in at the top level as equal-status arrangers.

Coming in as co-managers were Bank of East Asia, Banco Bilbao Vizcaya Argentaria, Chang Hwa Commercial Bank, Chinatrust Commercial Bank, China Development Bank, Citic Ka Wah Bank, DZ Bank, First Commercial Bank, ING Bank, Intesa Sanpaolo, Morgan Stanley, Sumitomo Trust & Banking Corp, UBS and United Oversea Bank. Final allocations were not disclosed.

Proceeds are to refinance existing loans signed in 2007 that were used for the acquisition of Alinta assets.

China

A $30 million two-year refinancing for China Metal Packaging Group was signed on July 8 on a club basis.

Shinhan Asia, Standard Chartered Bank and Bank of Taiwan (Hong Kong) committed $15 million, $10 million and $5 million respectively. The margin of the term loan is 325bp over Libor.

China Resources Power HoldingsÆ $100 million equivalent three-year dual-currency facility has been inked by lead arrangers and bookrunners Commerzbank, Mizuho and Sumitomo Mitsui Banking Corp.

The leads each committed $30 million, except Commerzbank which provided $25 million. Senior lead managers Yamaguchi Bank (Dalian branch) held $9 million while Maybank and Banca Monte dei Paschi di Siena gave HK$50 million and HK$39 million respectively.

The bullet loan features a margin of 75bp over Libor and has a commitment fee of 20bp. Proceeds are for working capital purposes.

Shanghai Zhenhua Port MachineryÆs $125 million three-year financing is being well received in syndication via original mandated leads and bookrunners Calyon and Royal Bank of Scotland. The loan was already upsized from $100 million prior to launch but will be further increased up to approximately $180 million due to the good response from the market.

The bullet loan pays a spread of 215bp over Libor. Senior syndication saw four banks joining at the top level û BayernLB, Commerzbank, Fortis and Industrial & Commercial Bank of China (Asia).

So far, general syndication has seen a handful of commitments from Bank of Nova Scotia, HSH Nordbank, Natixis, United Overseas Bank and Wing Hang Bank. An additional lender is currently processing its approval and is expected to join in soon.

Proceeds are for working capital requirements.

Hong Kong

A HK$3.8 billion three-year term loan for Hutchison International Finance was completed on July 7 via a syndicate of 10 banks. ANZ, Banco Bilbao Vizcaya Argentaria (Hong Kong), Bank of Tokyo-Mitsubishi UFJ, BayernLB (Hong Kong), BNP Paribas, Canadian Imperial Bank of Commerce, HSBC, Scotia Bank (Hong Kong), Standard Chartered (Hong Kong) and Sumitomo Mitsui Banking Corp each committed HK$380 million.

The pricing of the facility is 60bp over Hibor. Proceeds are to refinance existing indebtedness and for general working capital purposes.

India

A $1 billion five-year debt package for Reliance Industries was launched into general syndication on July 11 via a consortium of 17 mandated lead arrangers and bookrunners, namely ABN AMRO, Banco Bilbao Vizcaya Argentaria, Bank of Tokyo-Mitsubishi UFJ, BayernLB, BNP Paribas, Calyon, Citi, DBS Bank, Fortis, HSBC, ING Bank, Mashreqbank, Natixis, NordLB, Rabobank, Sumitomo-Mitsui Banking Corp and WestLB.

The margin is priced at 130bp over Libor with a commitment fee of 25bp.

Banks have been invited on four levels. Lead arrangers committing $40 million or above earn 105bp in upfront fees, while co-arrangers holding between $30 million and $39 million take 95bp. Lead managers providing $20 million to $29 million earn 85bp and managers lending between $10 million and $19 million get 75bp flat.

Banks have until August 12 to revert. The funds are for working capital purposes

Indonesia

Bank Ekspor IndonesiaÆs $100 million one-year term loan was pre-funded on July 11 and is likely to be upsized in the near future. The original mandated lead arrangers and bookrunners are Bank of Tokyo-Mitsubishi UFJ, Natixis, Oversea-Chinese Banking Corp, Standard Chartered and Sumitomo Mitsui Banking Corp.

Proceeds are for export financing purposes.

General and senior syndication of a $300 million three- and five-year multi-tranche transaction for Bayan Resources is in progress via original arrangers ING Bank, Standard Chartered and Sumitomo-Mitsui Banking Corp.

The debt package comprises a $150 million five-year term loan and a $100 million three-year revolving credit that are still syndicating, and a $50 million five-year revolver, which will be solely provided by the leads on a club basis.

Proceeds are for working capital purposes.
Singapore

Syndication of Parkway HoldingsÆ S$850 million five-year construction loan is slated to close by the end of this week via bookrunners Calyon, DBS Bank, HSBC, Oversea-Chinese Banking Corp, Royal Bank of Scotland and Standard Chartered Bank.

The margin is priced at 200bp over SOR.

So far, responses have been good and the facility is more than oversubscribed with over 10 banks joining in.

Proceeds are for the acquisition of a land site and for the construction of a new hospital.

Yantai Raffles ShipyardÆs $145 million three-year fundraising has been sealed via mandated arrangers ABN AMRO, Commonwealth Bank of Australia and ICICI Bank (Singapore branch). ABN AMRO is the original lead arranger and sole bookrunner. The deal was increased from $125 million.

Final allocations saw ABN AMRO take $25 million, while Commonwealth Bank of Australia and ICICI Bank (Singapore branch) contributed $50 million and $20 million respectively. Coming in as lead arrangers were First Gulf Bank, which committed $15 million, while Banco Espirito Santo do Oriente, Natixis (Singapore branch) and State Bank of India (Hong Kong branch) provided $10 million apiece. PT Bank Negara Indonesia (Persero) took $5 million as a senior manager.

The funds are to support capital expenditure and working capital requirements.

South Korea

Alpha Dome CityÆs W2 trillion four-year loan has been postponed due to current market conditions and also to finalise certain terms and conditions with the borrower. Korea Exchange Bank is the sole mandated arranger.

The mandated lead has provided a W200 billion bridge facility for the acquisition of land.

A $200 million five-year credit for Pohang Iron & Steel (POSCO) was inked as a club deal last week via a syndicate of five banks.

Syndication saw ANZ, Export-Import Bank of Korea, Korea Development Bank, Mizuho Corporate Bank and Sumitomo-Mitsui Banking Corp joining in.

Taiwan

Chailease Finance (BVI)Æs $100 million three-year fundraising was launched into syndication in early July via mandated lead arranger Mizuho.

The facility is divided into three tranches û a $70 million term loan, a $20 million revolver and a Ñ1 billion bilateral portion.

Guaranteed by the borrowerÆs parent company, Chailease Finance, the deal pays a spread of 100bp over Libor. For the term loan, mandated lead arrangers committing $10 million or above get a fee of 25bp, lead arrangers lending $6 million to $9 million earn 15bp, and arrangers holding $3 million to $5 million receive 10bp. The syndicated tranches are bullet loans.

A NT$1.5 billion five-year dual-tranche transaction for Hota Industrial Manufacturing was inked on July 10 via coordinating arrangers and bookrunners Bank of Taiwan, E.Sun Commercial Bank and Industrial Bank of Taiwan.

The leads contributed NT$200 million apiece. Participants Taichung Bank lent NT$150 million and Chang Hwa Commercial Bank, Shin Kong Commercial Bank and Taiwan Business Bank held NT$120 million apiece. Hua Nan Commercial Bank and Land Bank of Taiwan each took NT$100 million, while Mega International Commercial Bank and Taiwan Cooperative Bank provided NT$70 million apiece. Bank of Kaohsiung rounded out the group with NT$50 million.

The credit comprises NT$1.2 billion and NT$300 million revolving facilities. Guaranteed by Hota's chairman, the fundraising features a margin of 80bp over the secondary CP rate and the former revolver has a commitment fee of 15bp, which kicks in if the usage is less than 50% of the amount.

The repayment schedule will be nine semi-annual installments after a grace period of 12 months. Proceeds are for refinancing and working capital purposes.

A $48 million five-year revolving credit for the SPV of CLEVO û Kapok Computer (Samoa) Corp was upsized from $40 million and signed on July 15 via coordinating arrangers Cathay United Bank and Taiwan Business Bank. Other banks joining at lower levels are Hua Nan Commercial Bank, Land Bank of Taiwan and Yuanta Commercial Bank.

Guaranteed by the parent company of the borrower, the deal features a margin of 85bp over one-, two-, three- or six-month Libor. Proceeds are for working capital purposes.

Tai Chen (B.V.I) HoldingsÆ $25 million four-year revolver was sealed on July 9 via mandated lead arrangers and bookrunners Chang Hwa Commercial Bank, Industrial Bank of Taiwan, Land Bank of Taiwan, Mega International Commercial Bank, Taishin International Bank, Taiwan Business Bank and Taiwan Cooperative Commercial Bank.

The leads provided $3 million apiece, while participants EnTie Commercial Bank and Jih Sun International Bank each committed $2 million.

Secured by a US dollar time deposit and guaranteed by the borrowerÆs parent company Ta Chen Stainless Pipe, the deal pays a spread of 135bp over Libor. A commitment fee of 5bp will utilised if the usage is not up to 50% of the total amount.

The repayment schedule will be five semi-annual installments after a grace period of two years. Proceeds are to refinance an existing debt facility and for working capital purposes.
¬ Haymarket Media Limited. All rights reserved.

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