Loan Week, July 14-20

A roundup of the latest syndicated loan market news.

ANZ Investment Bank has funded a A$465 million multi-tranche facility for the Regis Group. The deal comprises a A$280 million five year credit, a A$140 million five year revolver, a A$35 million five year bullet and a A$10 million term portion.

The facility is expected to be launched into syndication at the end of the month. Proceeds are for working capital purposes.

Smorgon Steel GroupÆs A$320 million revolving credit facility has been completed via lead arrangers ANZ Investment Bank and National Australia Bank, with each taking commitments of A$40 million.

Joining as participants, Westpac committed A$100 million while Citi and HSBC provided A$50 million apiece. BNP Paribas ended up with A$40 million.

A $600 million dual tranche financing for SPI Electricity and Gas Holdings has been inked via mandated arrangers Commonwealth Bank of Australia and Westpac.

The facility is split into a A$350 million three year revolver and a A$250 million five year revolving credit facility.

Commonwealth Bank of Australia and Westpac contributed A$112.5 million apiece while participants ANZ Investment Bank, Bank of Tokyo-Mitsubishi UFJ, HSBC, Mizuho Bank, National Bank of Australia and Royal Bank of Scotland each took A$62.5 million.

Hong Kong

A HK$1.5 billion five year term loan for Lee & Man Paper Manufacturing has been launched into senior syndication via mandated arrangers DBS Bank and Standard Chartered Bank.

The financing pays a spread of 40.5bp over Hibor with an average life of four years.

In sub-underwriting, banks committing HK$250 million or above receive an upfront fee of 42bp with an underwriting fee of 4bp.

In general syndication, lead arranger titles are being offered to banks contributing HK$200 million or above for a management fee of 42bp.

The deadline for senior syndication is targeted at the end of the week. So far, one firm commitment has been received.

Proceeds are for working capital purposes.

PrimeCreditÆs HK$1.2 billion four year dual-tranche financing has been closed in general syndication this week via mandated leads ANZ Investment Bank, DBS Bank, KBC Bank and Standard Chartered Bank. The facility was oversubscribed and upsized from HK$800 million due to an enthusiastic market response.

The fundraising is divided into a HK$240 million revolver and a HK$960 million term loan, both paying a margin of 33bp over Hibor.

Banks were invited on three tiers. Arrangers committing between HK$100 million or above receive 30bp flat, lead managers providing between HK$70 million and HK$90 million get 25bp and managers lending HK$40 million to HK$60 million earn 20bp.

Allocations have yet to be finalised. Proceeds are to refinance existing debt and for working capital purposes.


Bajaj Hindusthan Sugar IndustriesÆ $90 million seven year term loan has been signed via mandated arrangers Cordiant Capital, HSH Nordbank, Rabobank, Standard Chartered Bank and WestLB. Original leads Rabobank and Standard Chartered Bank are the bookrunners.

The deal pays a spread of 160bp over Libor and a commitment fee of 50bp.

Syndication saw a total of four financial institutions joining; three as equal-status lead arrangers while XL Insurance (Bermuda) came in as an arranger.

Proceeds are for working capital purposes.

Bhushan Steel & StripsÆ $100 million six year facility has received $45 million in commitments so far. The facility is led by Barclays Capital and State Bank of India.

Joining in general syndication are Hua Nan Commercial Bank, Punjab National Bank and Shinhan Bank.

Banks have to revert by July 26.

Jubilant Organosys has mandated ICICI Bank to arrange a $100 million dual tranche facility that is split into two $50 million portions. One of which, was lent on a non-recourse basis as a bilateral loan by ICICI.

The second portion will be syndicated on a recourse basis, and is expected to be launched into syndication in a few weeks.

Proceeds are to fund the acquisition of Hollister-Stier Laboratories.

Mercator Lines (Singapore)Æs $175 million 10 year ship financing has been closed and allocations are finalized. BNP Paribas, DVB Bank, ICICI Bank and Hypovereinsbank are the mandated arrangers.

ICICI Bank and DVB Bank provided $35 million each while BNP Paribas and Hypovereinsbank held $25 million apiece.

NIBC committed $21 million and DnBNor Bank took $14 million while Rabobank and CIC ended up with $10 million each.

Signing is slated for the end of July. Proceeds are to support the purchase of three bulk carriers.

Varun Shipping has mandated ICICI Bank to arrange a $48 million 10 year fundraiser. The loan features a spread of 145bp over Libor and a put-option to the lenders at the end of 7 years.

Banks have been invited on four levels. Mandated arrangers joining with $15 million or above receive an upfront fee of 50bp for an all-in of 156bp while lead arrangers committing between $7.5 million and $10 million get 45bp for an all-in of 153bp. Arrangers providing between $5 million and $7.5 million earn 40bp for an all-in 152bp and co-arrangers lending $5 million gain 30bp for an all-in of 151bp.

Proceeds are to support the acquisition of a VLGC (very large gas carrier) ship.


A $145 million five year facility for Bakrie Telecom has been signed via sole mandated lead arranger Credit Suisse. The facility was oversubscribed due to an overwhelming market response and allocations were scaled back.

The term loan pays a margin of 375bp over Libor with an average life of 3.5 years.

Full syndication comprised of institutional investors which are undisclosed.

Proceeds are to fund capital expenditure and working capital purposes.

Indover BankÆs $150 million one year credit was signed on July 16 via mandated arrangers BayernLB, Nataxis, Oversea-Chinese Banking Corp, RZB Austria and Standard Chartered Bank.

The loan pays 50bp over Libor for a top level all-in of 85bp.

Allocations have been finalised with the mandated arrangers committing $18 million apiece. Lead arranger Commerzbank provided $15 million while co-arrangers Bank Danamon, Bank of Montreal and BankMuscat contributed $10 million each. Lead managers BRE Bank, Bank Rakyat Indonesia and Danske Bank held $5m apiece.

Funds are to refinance an existing debt facility from June 2006 and for general corporate purposes.

New Zealand

CCMP Capital Asia and TeachersÆ Private CapitalÆs NZ$1.8 billion leveraged buy-out financing to support the acquisition of Yellow Pages Group has been closed in general syndication via mandated lead arrangers ABN AMRO, Barclays Capital, Calyon and Deutsche Bank.

The fundraising is split into a NZ$1.325 billion six year senior debt facility, a NZ$300 million one year mezzanine bridge loan and a NZ$175 million seven year PIK portion. The latter two tranches are club deals, both provided by mandated lead arrangers ABN AMRO and Barclays Capital, with Deutsche Bank contributing only to the mezzanine loan.

The six year senior debt facility is further divided into a NZ$1.175 billion B-loan, a NZ$100 million revolving credit and a NZ$50 million revolver.

Syndication saw a total of 17 banks and institutions coming onboard. ANZ Investment Bank, Hastings Funds Management, Macquarie, Sumitomo Mitsui Banking Corp and Westpac joined as co-arrangers. Coming in as lead mangers are Allied Irish Bank, Aozora Asia Pacific and BayernLB, while Bank of New Zealand, Mega International Commercial Bank, Natixis and United Overseas Bank had the title of managers. A number of institutional investors also participated but details are undisclosed.

The facility was funded at the end of April via the mandated leads and substitution is expected to take place on August 7.


Calyon, DBS Bank and Mizuho Corporate Bank have been mandated to arrange a $1 billion five year financing for San Miguel.

The deal is said to feature an average life of 3.5 years.

The funds are to refinance a $250 million five year amortizing loan signed in November 2006.


Kohlberg Kravis RobertsÆ $600 million leveraged buy-out facility to support the acquisition of MMI Holdings has been closed in syndication via seven mandated leads with Credit Suisse, Deustche Bank and JP Morgan as the bookrunners

The financing is split into a $200 million five year loan with an average life of four years, tranche æAÆ, a $290 million seven year portion with an average life of 6.5 years, tranche æBÆ, and a $110 million six year revolver, tranche æCÆ.

Syndication saw Bank of Scotland, Royal Bank of Scotland, Shinhan Bank and WestLB join in sub-underwriting as equal-status mandated lead arrangers. Coming in as lead arrangers were Aozora Bank, DBS Bank, HypoVereins bank (UniCredit), ING Bank, Mizuho and Sumitomo Mitsui Banking Corp. GE Commercial Finance joined as an arranger.

The deal was funded by the bookrunners and substitution is scheduled for next week.

Proceeds of tranche æAÆ and tranche æBÆ are for the acquisition facility while tranche æCÆ is to fund working capital purposes.

Siltronic Samsung WaferÆs S$661.45 million credit has been closed in syndication via mandated arrangers Citi, DBS Bank and HSBC.

The guarantee facility comprises of a door-to-door maturity of seven years and three months and pays a margin of 140bp over Sibor.

Two tiers were offered; banks contributing S$70 million or above receive an upfront fee of 65bp while those providing S$50 million to S$70 million earn 50bp.

Allocations have not yet been disclosed. Signing is expected in a couple of weeks.

Proceeds are to fund the construction of a 300mm wafer fabrication operation.

Want Want HoldingsÆ $850 million has been completed via original mandated arrangers BNP Paribas, Goldman Sachs and UBS. The facility closed oversubscribed in senior syndication, and did not go into general syndication.

UBS committed $75 million while BNP Paribas and Goldman Sachs each provided $72.5 million.

Joining as equal status arrangers, ABN AMRO, Bank of Tokyo-Mitsubishi UFJ, Chinatrust, DBS Bank, Fubon Commercial Bank, HSBC, International Commercial Bank of China and United Overseas Bank took $70 million apiece.

The funds are to support the privatisation of Want Want Holdings.

Syndication is ongoing for Formosa Plastics Corp USAÆs $100 million five year bullet loan via mandated arrangers Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp.

The deal features a spread of 37.5bp over Libor.

Banks have been invited on two tiers. Arrangers committing $20 million receive a management fee of 15bp for an all-in of 40.5bp while lead managers providing between $10 and $19 million get 10bp for an all-in 39.5bp.

Banks have until July 27 to respond.


True MoveÆs Bt7.9 billion five year term loan is still in general syndication via sole mandated arranger DBS Bank. Bangkok Inter Teletech, True Distribution and other investors of the company are acting as guarantors for the facility.

The deal has an average life of 3.8 years with a grace period of 24 months.

In senior syndication, banks committing Bt1.65 billion (with a final take of Bt1 billion) receive an underwriting fee of 45bp and a management fee of 100bp.

Banks joining as equal status mandated arrangers in general syndication take 100bp flat, for a final take of Bt1 billion. Senior lead arrangers committing a final take of Bt 650 million earn an 85bp participation fee.

Banks have the option to commit in Thai baht, US dollars or Japanese yen. So far, one commitment has been received, with the deadline targeted at the end of the month.

Proceeds are to refinance an existing debt facility and to go towards other fees related to the transaction.

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