Loan Week, July 14 - 21

A round up of the latest syndicated loan market news.

Alumina has successfully raised $700 million from the market via a multi-tranche revolving credit provided by four banks.

Mandated arranger Westpac took $85.714 million while lenders include Commonwealth Bank of Australia with a ticket of $107.143 million, Bank of America with $53.571 million and Bank of Tokyo-Mitsubishi UFJ taking $53.571 million.

The facility comprises a $150 million five-year tranche æAÆ, a $250 million three-year tranche æBÆ and a $300 million one-year tranche æCÆ. Proceeds are for working capital purposes and to refinance existing debt.

Brambles IndustriesÆ A$1.445 billion facility was pre-funded on July 5 via five underwriters. ANZ Investment Bank, Citigroup, Credit Suisse, HBOS and UBS have fully underwritten the deal with commitments of A$289 million each. Credit Suisse and UBS are joint lead arrangers and bookrunners while ANZ and HBOS are the co-arrangers.

The six-year facility comprises a A$1.004 billion term portion, a A$130 million revolver and a A$275 million capital expenditure tranche. Proceeds will be used to support the A$1.8 billion Kohlberg Kravis Roberts-led leveraged buyout of Brambles IndustriesÆ subsidiaries Cleanaway Australia and New Zealand and Industrial Service Australia.

Brambles Industries is borrowing through special purpose vehicle Rubus Intermediate One.

ABN AMRO, Calyon (Australia), HSBC Bank Australia, HSBC, National Australia Bank and WestLB have bagged the mandate for RiverCity Motorway GroupÆs A$1.43 billion financing. The facility will be used to fund the construction of the North-South Bypass Tunnel, BrisbaneÆs first privately financed toll road. A wider syndication will follow shortly.


Syndication of China National Chemical Corp (ChemChina)Æs A$194 million LBO financing has yet to close. Thus far, the facility has secured a commitment from ANZ Investment Bank. Mandated lead arranger Standard Chartered is running the books on a sole basis.

The financing comprises a A$113 million six-year term portion, a A$50 million six year revolver and a A$30 million three-year capital expenditure tranche. Proceeds will be used to fund the acquisition of an Australian polyethylene manufacturer from Exxon Mobile.

Allocations for Minmetals Capitals & SecuritiesÆ $100 million dual tranche financing have been finalised. A total of 13 banks are participating. Mandated arrangers Banc of America Securities Asia, DBS Bank and ING Bank are running the books.

Mandated arrangers Banc of America Securities Asia, Bank of China (Hong Kong), Bank of Tokyo-Mitsubishi UFJ, Calyon, DBS Bank and ING Bank contributed $19 million apiece while arrangers Mizuho Corporate Bank and Nanyang Commercial Bank committed $16 million each, BBVA (Hong Kong), Citic Ka Wah Bank and Sanpaolo IMI (Shanghai) pledged $12 million apiece. ANZ Investment Bank and Banca Monte dei Paschi di Siena (Hong Kong) joined as managers, providing $9 million each.

The deal is split into two $100 million, three-year loans that are priced at 26bp over Libor. Proceeds are for working capital purposes. Signing took place on July 18 in Beijing.

Joint mandated lead arrangers BNP Paribas and Mizuho Corporate Bank are yet to close the books for Zhenjiang Union Chemical Industry Corp (Union) and Zhuhai Unicizers Industrial Corp (Unicizers)Æs $100 million renminbi equivalent fundraising. Thus far, the facility has received one commitment with around 10 banks still in the final stages of processing credit approvals.

The three-year facility has received an overwhelming response in general syndication and the facility size is likely to be increased, according to bankers close to the deal. The dual tranche financing is guaranteed by the borrowersÆ Taiwanese parent company UPC Technology Corp. Financial close is scheduled on July 24 (next Monday).

Hong Kong

AS Watson (France) signed its Ç600 million, five-year facility on July 17. Mandated arrangers Calyon took Ç110 million, Natexis Banques Populaires and Societe Generale provided Ç100 million apiece and Banca Intesa contributed Ç60 million.

BayernLB, BNP Paribas and UBS joined as participants with tickets of Ç40 million each and Banca di Roma, SMBC and WestLB pledged Ç25 million apiece. Lead managers are ING Bank lending Ç15 million, Fortis Bank committing Ç12 million and BBVA ending up with a hold of Ç8 million.

The loan comprises a margin of 27bp over Euribor and proceeds are to refinance existing debt.

Joint lead arrangers Bank of China (Hong Kong) and Standard Chartered are yet to close the books for Chinese Estates (Tung Ying Building)Æs HK$2.26 billion financing. The four-and-a-half-year facility has been extended for another week with banks expected to revert by next Monday (July 24). Thus far, it has secured several commitments with more banks still waiting for credit approvals.

Sole mandated co-ordinating arranger Standard Chartered has launched Crown Worldwide MoversÆ $85 million term facility into general syndication. The two-year bridge facility offers a margin of 150bp over Libor in the first year and 225bp in the second year.

Banks are being invited to join on three levels. Co-ordinating arrangers taking $20 million or above get a management fee of 52bp over Libor; arrangers committing $14 million to $19 million receive 36bp.

Proceeds will be used to fund the acquisition of the business division of Sirva UK. The deadline for responses is August 4.

Henderson Land DevelopmentÆs HK$13.35 billion facility has been closed with a total of 24 banks participating. The five-year revolving credit has been further upsized from HK$12.2 billion due to a resounding response in general syndication.

The arranger group comprises Agricultural Bank of China, Bank of China (Hong Kong), Bank of East Asia, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, BayernLB, Calyon, CCB International Finance, Citigroup, DBS Bank, HSBC, ICBC Asia, Mizuho Corporate Bank, OCBC, Rabobank Nederland, Royal Bank of Scotland, Fortis Bank, Standard Chartered and SMBC. The 19 mandated arrangers saw five banks join in general syndication. They are Bank of Communications, Bank of Nova Scotia, Tai Fung Bank, Wing Lung Bank and BBVA with a total subscription of HK$1.15 billion.

Proceeds will be used for working capital purposes. Signing is targeted for July 26.

The HK$5 billion seven year fundraising for Hongkong Electric has closed via sub-underwriters Bank of China (Hong Kong), Calyon, Citigroup, Bank of Tokyo-Mitsubishi UFJ and Mizuho Corporate Bank. Bankers are in talks with the borrower whether to close the deal as a club or to launch it into general syndication.

Pacific Andes International HoldingsÆ$160 million multi-tranche financing has been allocated. A total of 20 banks are participating in this deal.

Mandated co-ordinating arrangers are Rabobank, HSBC and Hang Seng Bank contributing $15 million each. Arrangers are Bank of Communications (Hong Kong) and CITIC Ka Wah Bank committing $12 million apiece and three others û Bayerische Hypo-und Vereinsbank (Hong Kong), Bumiputra-Commerce Bank (Hong Kong) and Commerzbank (Hong Kong) û joined with holds of $11 million each.

Agricultural Bank of China (Hong Kong) and Wing Hang Bank took $8.8 million and $7.2 million respectively and came in as senior managers. Managers include China Construction Bank (Hong Kong) lending $7 million and ICBC (Asia) providing $5 million.

Six other managers û Cathay United Bank (Hong Kong), China Construction Bank (Asia), Fubon Bank (Hong Kong), Maybank (Hong Kong) and UniCredito Italiano (Hong Kong) û joined with commitments of $4 million apiece. Shanghai Commercial and Savings Bank (Offshore Banking) and Taishin International Bank (Hong Kong) ended up with $3 million each.

Signing took place last Friday (July 14).

PCCWÆs HK$6.45 billion revolving credit was signed on July 18 (Tuesday) in Hong Kong. The four-year facility features a spread of 46bp over Hibor and was led by a consortium of 17 banks. Proceeds will be used for working capital purposes.

Co-ordinating arrangers BayernLB (Hong Kong), Calyon (Hong Kong) and HSBC ended up with HK$600 million each while three others û Bank of China (Hong Kong), DBS Bank (Hong Kong) and SMBC û joined with holds of HK$450 million apiece. There were 11 other banks providing HK$300 million each. They were Agricultural Bank of China (Hong Kong), Bank of America, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas (Hong Kong), Hang Seng Bank, ICBC Asia, ING Bank (Hong Kong), Mizuho Corporate Bank, Royal Bank of Scotland, Scotiabank (Hong Kong) and Standard Chartered (Hong Kong).

Sole mandated lead arranger Standard Chartered has launched the HK$3 billion financing for Swire Pacific into general syndication. The financing saw five banks join as equal status arrangers in sub-underwriting. They are Fortis Bank, DBS Bank, ING Bank, Westpac and SMBC.

The five-year facility offers a margin of 20bp over Hibor and is being marketed on two tiers. Arrangers providing $200 million or above receive an upfront of 20bp, leading to a top level all-in of 24bp over Hibor. Co-arrangers committing $100 million to $190 million earn 15bp for an all-in of 23bp over Hibor.

Proceeds will be used for general corporate purposes. Banks have until next Tuesday (July 25) to respond.India

A $360 million five-year fundraising for Reliance Energy was signed on July 14. A total of 12 banks are participating.

ABN AMRO, BNP Paribas, Calyon, Citigroup, DBS Bank, Export Development Canada, HSBC, ING Bank, KfW, Mizuho Corporate Bank, Rabobank and SMBC contributed $30 million apiece. Proceeds are for capital expenditure requirements.

A $50 million one year loan for Nina Trading was signed on July 10 via mandated arranger ABN AMRO. Duferco is providing a guarantee.

ABN AMRO, DBS Bank, Fortis and Standard Chartered Bank joined with contributions of $12.5 million apiece. Proceeds are for working capital purposes. The facility is a pre-export finance facility.

Union Bank of IndiaÆs $170 million three-year financing was signed on July 17. A total of 16 banks are participating in the facility.

Mandated arrangers Bank of Tokyo-Mitsubishi UFJ, DBS Bank, Natexis Banques Populaires and RZB Austria contributed $17 million apiece. BNP Paribas, Standard Chartered and Lloyds TSB Bank committed $15 million each while lead arrangers Commerzbank and National Bank of Dubai took $12 million apiece. Co-arranger American Express bank provided $7 million and Bank of Taiwan, E.Sun Commercial Bank and Mascareignes International Bank held $6 million each. Lead managers Export-Import bank of the Republic of China and International Commercial Bank of China pledged $3 million apiece and BBVA ended up with a commitment of $2 million.

The deal comprises a margin of 33bp over Libor and proceeds are for general corporate purposes.

South Korea

Hyundai CardÆs $100 million credit was signed on July 11. A total of six banks are participating in the transaction.

Mandated arrangers SMBC held $25 million while Calyon and ING Bank took $20 million apiece. Arrangers National Agricultural Cooperative Federation lent $20 million and Bank of China pledged $10 million. Mizuho Corporate Bank joined as a co-arranger with a contribution of $5 million.

The loan offers a spread of 40bp over Libor and proceeds are for working capital purposes.


Syndication has been launched for Chung Hung Steel CorpÆs NT$12 billion multi-tranche fundraising. A total of 10 banks are leading the facility. They are Bank of Taiwan, Chiao Tung Bank, Chinatrust Commercial Bank, Industrial Bank of Taiwan, International Commercial Bank of China, Land Bank of Taiwan, Taipei Fubon Commercial Bank, Taishin International Bank, Taiwan Business Bank and Taiwan Cooperative Bank.

Fees to the market are on four tiers. Arrangers providing NT$1.2 billion or above gain 10bp, co-arrangers offering NT$800 million to NT$1.19 billion earn 8bp, managers committing NT$300 million to NT$790 million get 4bp and participants lending NT$200 million to NT$290 million gain 1bp.

Etron TechnologyÆs NT$2.2 billion multi-tranche facility has been upsized from NT$2 billion and allocations have been finalised.

Mandated arrangers are Taiwan Cooperative Bank committing NT$600 million, Central Trust of China, Hsinchu International Bank, Hua Nan Commercial Bank and Taipei Fubon Commercial Bank offering NT$300 million each. Lenders are Land Bank of Taiwan taking NT$300 million and Chang Hwa Commercial Bank providing NT$100 million. Signing is expected to be held on July 25.

Leading Profit and Double TechÆs $50 million three-year fundraising has been launched via mandated arranger Taipei Fubon Commercial Bank while Shanghai Commercial & Savings Bank has joined as participant.

The facility offers a margin of 40bp over Libor. Proceeds are to refinance existing debt.

Ocean Blue ConstructionÆs NT$2.2 billion multi-tranche credit has been launched into general syndication via mandated arrangers Cathay United Bank, International Commercial Bank of China and Union Bank of Taiwan. EnTie Commercial Bank, Shinkong Commercial Bank and Shanghai Commercial & Savings Bank have joined as participants. Banks have until early August to respond.

President InternationalÆs NT$2.5 billion dual tranche facility has been launched into general syndication. Chinatrust Commercial Bank is the mandated arranger.

The margin is 42.5bp over the CP rate and fees to the market are on two tiers. Lead managers contributing NT$300 million or above earn 4bp and managers lending NT$200 million to NT$299 million gain 2bp.

Proceeds are for working capital purposes and to refinance existing debt. The deadline for banks to respond is August 18.

Market talk is that Bank Sinopac is set to be mandated to lead arrange ProMOSÆ NT$10 billion fundraising. A formal mandate will be announced shortly.

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