loan-week-july-1723

Loan week, July 17-23

A roundup of the latest syndicated loan market news.

Australia

Boart Longyear has formally mandated bookrunners ANZ, Bank of America, BNP Paribas, Commonwealth Bank of Australia, National Australia Bank and Royal Bank of Scotland to arrange a refinancing to repay and extend existing debt facilities of up to A$850 million.

According to the borrower, the new facility will feature a reduced amount, extended tenor, increased pricing and amended financial covenants.

ElectraNet has successfully secured a A$200 million three-year bullet loan from a consortium of four domestic banks on a club basis.

Mandated lead arrangers ANZ, Commonwealth Bank of Australia, National Australia Bank and Westpac provided A$50 million apiece.

Proceeds are to repay the borrower's existing bond issues.

A A$191 million club deal for Stella SA Schools has been inked via mandated lead arrangers Commonwealth Bank of Australia, National Australia Bank and Westpac.

The leads each committed A$64 million. Proceeds are to fund a project that will design, build and maintain schools in South Australia for a period of 30 years.

China

A Rmb1 billion three-year term loan for Hitachi Construction Machinery Leasing (China) has been signed via sole mandated lead arranger and bookrunner Sumitomo Mitsui Banking Corp. Bank of Communications and Bank of China joined in as lead arrangers.

Proceeds are for working capital purposes.

A $100 million loan for Weiqiao Textile is still ongoing in syndication via bookrunners Calyon and Royal Bank of Scotland. So far, Wing Lung Bank has joined in with a commitment of around $20 million.

The three-year loan is priced at 180bp over Libor.

Proceeds are to refinance a previous deal signed in August 2006 and for working capital purposes.

Hong Kong

Henderson Land Credit (2009)'s HK$8 billion three-year self-arranged term loan received strong support from both Chinese and international banks and was upsized from the original HK$5 billion. Signing took place on July 21 and involved a total of 34 banks.

Guaranteed by Henderson Land Development, the financing pays a spread of 100bp over Hibor.

Final allocations saw mandated lead arrangers Bank of China (Hong Kong) commit HK$600 million and Agricultural Bank of China (Hong Kong), China Construction Bank (Hong Kong), HSBC and Industrial & Commercial Bank of China (Asia) take HK$500 million apiece. Bank of Communications (Hong Kong), Bank of East Asia (Hong Kong), Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp each provided HK$400 million. ANZ, DBS (Hong Kong), Royal Bank of Scotland (Hong Kong) and Industrial & Commercial Bank of China (Macau) held HK$330 million apiece, while BNP Paribas (Hong Kong), Citi (Hong Kong), Oversea-Chinese Banking Corp (Hong Kong), United Overseas Bank and Wing Hang Bank offered HK$220 million each.

Senior manager Tai Fung Bank contributed HK$140 million, while Calyon (Hong Kong), Cathay United Bank (Hong Kong), Chang Hwa Commercial Bank, China Construction Bank (Asia), Chinatrust Commercial Bank, Chong Hing Bank, Dah Sing Bank, First Commercial Bank (Hong Kong), Fubon Bank (Hong Kong), Land Bank of Taiwan (Hong Kong), Scotiabank (Hong Kong), Shanghai Commercial Bank, Standard Chartered Bank (Hong Kong) and Wing Lung Bank came in as managers with HK$60 million tickets.

Proceeds are to refinance the HK$5 billion five-year tranche of a HK$10 billion financing due in September 2009 and for general corporate purposes.

Syndication of PrimeCredit's HK$1.2 billion fundraising was closed this week via sole bookrunner DBS. The facility was upsized from $500 million due to a good response from the market.

The deal pays a spread of 160bp over Hibor with a top level all-in of 220bp.

Final allocation saw the lead provide HK$75 million, while participant China Construction Bank came in with a HK$120 million ticket. United Overseas Bank ended up with HK$100 million, while Agricultural Bank of China (Hong Kong), Bank of China Macau, Dah Sing Bank, Industrial Bank of Taiwan, Mega International Commercial Bank, Natixis, Wing Lung Bank, and Yuanta Commercial Bank lent HK$75 million apiece. Bank SinoPac gave HK$55 million while Bank of Taiwan, Chang Hwa Commercial Bank, Far Eastern International Bank, Fubon Bank and Taiwan Business Bank provided HK$50 million each.

Signing is expected to take place next week. Proceeds are for refinancing purposes.

India

Fiat India Automobiles' $510 million-equivalent deal has been signed via sole mandated lead arranger and bookrunner Citi.

The deal is split into rupee- and euro-denominated portions. The syndicated rupee financing comprises a Rs10 billion six-year term loan and a Rs6 billion one-year tranche. The €130 million eight-year tranche is solely provided by Citi.

Participating lenders are IDBI Bank, Punjab National Bank, State Bank of India and Union Bank of India.

Proceeds are to support the manufacturing of Fiat branded cars, assembly of Tata cars and the production of transmissions and engines.

A $54 million four-year term loan for SV Oil & Natural Gas has been oversubscribed via sole mandated lead arranger and bookrunner Standard Chartered Bank.

The amortising facility is fully underwritten by the lead and pays a spread of 400bp over Libor.

Banks are welcome to come in at three levels. Mandated lead arrangers committing $15 million or above get 180bp, lead arrangers providing $10 million to $14 million earn 150bp and arrangers contributing $5 million to $9 million take 120bp.

Proceeds are to finance the rentals of oil drilling rigs. Signing is expected to take place by early August.

Vedanta Resources' $400 million two-year term loan was well received in the market and upsized to $400 million via a consortium of eight banks.

Mandated lead arrangers Bank of Tokyo-Mitsubishi UFJ contributed $70 million, while Axis Bank, Bank of Baroda, Calyon, Deutsche Bank and DBS Bank provided $50 million apiece. ANZ and BNP Paribas came in with holds of $40 million each.

The fundraising pays a spread of 425bp over Libor and proceeds are for general corporate purposes. Signing is expected to take place on July 24)

A €135 million loan for Volkswagen India was sealed last week via sole mandated lead arranger IFC. Bank of Tokyo-Mitsubishi, BNP Paribas, DBS and Societe Generale came in as equal-status lead arrangers.

The deal comprises a €60 million five-year and seven-month A loan solely provided by IFC and a €75 million syndicated nine-year B loan. Margins are priced at 290bp and 230bp over Euribor for the A and B loans respectively.

Proceeds are to partially finance the construction of a 230 hectare full production plant in Pune, India.

Japan

NEC Corp's ¥20 billion 364-day revolving credit was sealed on July 22 through sole mandated lead arranger Citibank Japan.

Syndication saw BNP Paribas, HSBC, J.P. Morgan and two other undisclosed lenders come in as participants.

Proceeds are to roll-over a previous loan signed in July 2008 and for general corporate purposes.

South Korea

Hana Bank's €140 million one-year term loan was completed on July 20 via a consortium of seven banks on a club basis.

Mandated lead arrangers Bank of America, Commerzbank, HSBC (Seoul), ING (Seoul), Landesbank Baden-Wurttemberg (Singapore), Royal Bank of Scotland and Standard Chartered Bank (Hong Kong) each provided €20 million.

The deal is priced at 200bp over Euribor. Proceeds are for working capital purposes.

Taiwan

AU Optronics Corp's NT$27 billion jumbo financing was signed on July 20 via a consortium of 10 local banks led by Mega International Commercial Bank. The facility was oversubscribed and upsized from NT$25 billion. The deal marks the largest domestic syndicated loan facility in Taiwan so far this year.

The five-year term loan is split into a NT$12 billion tranche and a NT$15 billion portion. Both are priced at 68bp over the primary CP rate and feature a commitment fee of 15bp.

Final allocations saw bookrunners Mega International Commercial Bank commit NT$4 billion, while Bank Sinopac took another big ticket of NT$3 billion. Shin Kong Life Insurance joined in with NT$2.5 billion, while E.Sun Commercial Bank, Land Bank of Taiwan and Taishin International Bank pledged NT$2 billion each. Chang Hwa Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank and Taiwan Cooperative Bank lent NT$1.98 million apiece.

Participants Taipei Fubon Commercial Bank and Cathay Life Insurance gave NT$1 billion each, while Taichung Commercial Bank committed NT$500 million. China Development Industrial Bank contributed NT$300 million and Bank of Kaohsiung ended up with NT$200 million.

Proceeds are for working capital purposes.

Ho Tung Chemical Corp's NT$2.75 billion five-year fundraising was inked last week via coordinating arrangers Agricultural Bank of Taiwan, First Commercial Bank, Hua Nan Commercial Bank, Land Bank of Taiwan and Taiwan Business Bank. The deal was oversubscribed and upsized from NT$2.5 billion.

The debt package comprises a NT$2 billion term loan and a NT$750 million revolving credit. The term loan offers a spread of 60bp over the primary CP rate, while the revolver is priced at 70bp over the same rate.

Final allocations saw bookrunners Land Bank of Taiwan pledge NT$545 million, while Agricultural Bank of Taiwan, Hua Nan Commercial Bank and Taiwan Business Bank contributed NT$350 million apiece, and First Commercial Bank joined with NT$300 million. Joint arranger Shanghai Commercial & Savings Bank gave NT$270 million and participant Taiwan Cooperative Bank came in with NT$225 million. Bank of Taiwan and Taichung Commercial Bank rounded off the syndicate with NT$180 million each.

Proceeds are for refinancing and working capital purposes.

Huafu Development has secured an add-on tranche of NT$127 million to an existing NT$2.5 billion construction facility completed in January 2008 via mandated leads Bank of Taiwan, Land Bank of Taiwan, Taipei Fubon Commercial Bank and Taiwan Cooperative Bank.  

The four-year term loan is priced at 150bp over the one-year average 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 and offers a commitment fee of 20bp.

Allocations saw the mandated leads commit NT$28 million each, while participant Taiwan Business Bank ended up with NT$15 million.

Proceeds are to support a construction development project.

A NT$3.7 billion construction financing facility for Kuo Yang Construction and Yeh Kuo Yi, the chairman of Inventec Corp, received an encouraging response from the market and was sealed on July 20 via sole bookrunner Land Bank of Taiwan. The facility was 2.16 times covered to the tune of NT$8 billion.

Secured by land and buildings, the four-year term loan comprises a NT$1.3 billion tranche and a NT$2.4 billion portion, which were priced at 112bp and 149bp respectively over the one-year average 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.

The sole bookrunner committed NT$1.7 billion while participant King's Town Bank joined with a hold of NT$300 million. Bank of Kaohsiung lent NT$220 million while Agricultural Bank of Taiwan, Bank of Taiwan, Chang Hwa Commercial Bank, DBS, Shin Kong Commercial Bank, Taichung Commercial Bank, Taiwan Business Bank and Yuanta Commercial Bank gave NT$160 million apiece. Bank of Panhsin and Sunny Bank came in with NT$100 million each.

Proceeds are to support land acquisition and construction of a residential development in Kaohsiung.

Taiwan Optical Platform Group (TOP), formerly the Taiwan Infrastructure Network Provider Group (TINP), has secured a NT$4.3 billion debt facility via mandated leads China Development Industrial Bank, Chinatrust Commercial Bank, EnTie Commercial Bank, Land Bank of Taiwan and Taipei Fubon Commercial Bank.

The debt package consists of a NT$260 million one-year term loan and two five-year term loan tranches of NT$3.5 billion and NT$510 million each. The package is guaranteed by the chairman and director, as well as by a group of subsidiaries under TOP. The pricing over the secondary CP rate is split into four tiers based on the borrower's debt-to-net worth ratio: if the ratio is below two times, the margin is priced at 130bp; between two and three times pays a spread of 140bp; between three and 3.25 times offers a margin of 150bp and if greater than 3.25 times, the margin is 175bp. The pre-tax interest floor is 2%.

Among the leads, Chinatrust Commercial Bank contributed NT$1.2 billion and Land Bank of Taiwan committed NT$840 million, while China Development Industrial Bank, EnTie Commercial Bank and Taipei Fubon Commercial Bank pledged NT$700 million each. Participant Shanghai Commercial & Savings Bank joined in with NT$150 million.

Proceeds are for refinancing and acquisition purposes.

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