Loan Week, July 21-27

A roundup of the latest syndicated loan market news.

Sole lead arranger HSBC will soon be closing syndication of Long Chen (Zhejiang) Paper FactoryÆs $47 million equivalent dual tranche term loan. Although the facility is already oversubscribed, a few more banks have yet to revert.

The five year deal, which has an average life of 4.1 years, pays a margin of 82.5bp over Libor on the US dollar tranche with a commitment fee of 15bp, while the RMB portion is priced at 90% of the PBOC rate.

A top level all-in of 86.2bp is offered to banks joining as arrangers with commitments of $15 million or above.

Syndication of Tianrui CementÆs RMB3 billion multi-tranche LBO facility has closed. China Construction Bank is the last entity to join in the sub-underwriting phase. The other mandated lead arrangers comprise JP Morgan, CITIC Industrial Bank, ING, International Finance Corp and Societe Generale.

In general syndication, China Everbright Bank joined Bank of Nova Scotia, Chinese Mercantile Bank, Hang Seng Bank, Korea Exchange Bank and Shinhan Bank.

Documentation is in progress and allocations are being finalised. Signing should be held in mid-August.

Hong Kong

Sub-underwriters have until early August to join Melco PBL Entertainment (Macau)Æs $1.25 billion dual tranche deal, which is being led by ANZ Investment Bank, Banc of America Securities Asia, Barclays Capital, Deutsche Bank and UBS.

The seven year facility is split between a $1 billion term loan and a $250 million revolving credit. Both carry a margin of 150bp to 200bp, based on an Ebitda ratio over Libor.

Coordinating lead arrangers underwriting $150 million earn an underwriting fee of 20bp and a management fee of 75bp while those taking and holding $100 million get 75bp.

General syndication is expected to be launched upon completion of senior syndication. Proceeds are to be used for the City of Dreams project.

New World China Land FinanceÆs HK$2 billion five year credit facility is closing soon in syndication. HSBC is the mandated arranger and is waiting for a handful of banks to commit. The loan, which carries a margin of 58bp over Hibor, is oversubscribed.

Noble GroupÆs $1.2 billion three year revolving credit facility was signed on July 18 via original mandated leads and bookrunners ABN AMRO, ANZ Investment Bank (Hong Kong Branch), Fortis Bank (Hong Kong Branch), ING Bank, Royal Bank of Scotland, Societe Generale and Standard Chartered Bank (Hong Kong Branch). The financing was oversubscribed and upsized from $1 billion due to an overwhelming market response.

Final allocations saw the bookrunners contribute $80 million apiece. Joining in as equal-status mandated arrangers were Dresdner Bank (Luxembourg) providing $80 million while Bank of Tokyo-Mitsubishi UFJ and Mizuho Corporate Bank committed $60 million each. Lead arrangers Commonwealth Bank of Australia (Singapore Branch) held $50 million while Bank of Nova Scotia and Lloyds TSB Bank gave $40 million apiece.

Coming in as arrangers were United Overseas Bank and Maybank (Hong Kong Branch) taking $35 million and $30 million respectively. CITIC Ka Wah Bank, Commerzbank (Hong Kong Branch), Credit Agricole (Suisse) and Industrial and Commercial Bank of China (Asia) provided $20 million each.

Co-arrangers Bank of Communications (Hong Kong Branch) held $18 million while First Commercial Bank and Nanyang Commercial Bank ended up with $15 million apiece and Credit Suisse took $12 million. Contributing $10 million each were BHF Bank, Chang Hwa Commercial Bank (Singapore Branch), HSH Nordbank (Singapore Branch), Intesa Sanpaolo (Hong Kong Branch), KBC Bank (Hong Kong Branch), Kookmin Bank, Natixis (Singapore Branch), Rabobank (Hong Kong Branch), Taiwan Business Bank (Offshore Bank Branch) and WestLB. Completing the syndicate was Banca Monte dei Paschi di Siena (Hong Kong Branch) which held $5 million.

Proceeds are to refinance an existing debt facility and for working capital purposes.


Alok IndustriesÆ $75m five year refinancing led by mandated arrangers Barclays Capital, Bank of India, State Bank of India and UTI Bank should complete syndication by August 10.

Amtek AutoÆs $200 million seven year credit is expected to close senior syndication shortly and launch into general syndication as early as next week via sole mandated lead ABN AMRO.

The fundraising is said to have a $50 million greenshoe.

Mandated arrangers Bank of India, Barclays Capital, Chinatrust Commercial Bank, Deutsche Bank, State Bank of India and UTI Bank expect to close the $100 million six year term facility for Bhushan Steel & Strips today (Friday).

The loan is already oversubscribed, but the leads are waiting for a few more banks to commit. Those joining as arrangers with holds of $10 million or above earn a top level all-in of 214.5bp over Libor or 234.5bp over yen Libor.

Proceeds will be for general corporate purposes.

Hindalco IndustriesÆ $3.1 billion 18 month bridge facility is targeted to close syndication next week via original mandated lead arrangers ABN AMRO, Banc of America Securities Asia and UBS. ABN AMRO and Banc of America Securities Asia are the bookrunners.

The loan is divided into a $2.2 billion tranche and a $900 million portion paying a margin of 30bp over Libor for the first year and 80bp thereafter.

Syndication has so far attracted 10 banks which joined as equal-status mandated lead arrangers. They are Bank of India, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Citi, Deutsche Bank, HSBC, ICICI Bank, Mizuho Corporate Bank, Standard Chartered Bank and Sumitomo Mitsui Banking Corp. Commitments have also been received by Calyon and Commonwealth bank of Australia for the lead arranger title.

Proceeds are to fund part of HindalcoÆs $6 billion acquisition of CanadaÆs Novelis.

ABN AMRO has been mandated to arrange Jindal Poly FilmsÆ $40 million five year loan, which features a $20 million greenshoe option.

Mandated arrangers and bookrunners Barclays Capital, Citi, State Bank of India and UTI Bank have launched into sub-underwriting and general syndication a $200 million multi-tranche credit facility for Jindal Stainless.

The amortising loan is split into an $80 million six year tranche that pays a margin of 185bp over Libor, a $60 million eight year portion that pays 230bp and a $60 million 10 year part that pays 245bp. Average life for the three tranches are 5.25, 7.5 and 9.5 years respectively. There is also a commitment fee of 50bp.

Sub-underwriters committing $25 million earn an underwriting fee of 30bp and will have MLA title. In general syndication, lead arrangers must contribute $15 million or above, arrangers need to lend $10 million to $14 million while lead managers have to pledge $5 million to $9 million.

Proceeds are for general corporate purposes. Banks have until mid-August to revert.

The $1 billion six year loan for Reliance Communications is expected to be signed next Friday. Despite an oversubscription in commitments, both the sub-underwriting and general syndication phases are not closed yet.

Banks joining in senior syndication are paid an all-in of 67bp over Libor while the top level all-in in general is 64bp.

ICICI Bank and State Bank of India have launched into general syndication a Eu110 million seven year fundraising for Wockhardt. Joining them as a lead arranger is Credit Industriel et Commercial.

The deal carries a margin of 175bp over Euribor and has an average life of 4.5 years.

Mandated lead arrangers lending $15 million or above earn an upfront fee of 85bp, lead arrangers providing $10 million to $14 million gain 75bp and co-arrangers taking $7.5 million to $9.5 million get 65bp.

Proceeds are for the acquisition of Negma Group. The deadline for responses is in mid-August.


A $200 million five year term loan for Chandra Asri has been launched into general syndication via mandated lead arrangers DBS Bank, Standard Chartered Bank and Sumitomo-Mitsui Banking Corp. DBS Bank and Standard Chartered Bank are acting as the bookrunners. The deal was funded in June 2007.

The facility offers a spread of 275bp over Libor and has an average life of 3.5 years.

Two tiers are being offered, with lead arrangers coming in at $20 million and above receiving 80bp and senior managers providing between $10 million and $19 million gaining 60bp.

Proceeds are for capital expenditure and general corporate purposes.

Summit Oto FinanceÆs $75 million A/B loan was signed on July 20 via sole bookrunner ABN AMRO. A $25 million greenshoe was exercised due to a strong market response.

The facility is divided into a $20 million four year A-loan provided by The Netherlands Development Finance Company (FMO) and a $55 million three year B-loan that was syndicated via ABN AMRO. The B-loan carries a margin of 165bp over Libor and has an average life 2.1 years.

Final allocations saw the bookrunner commit $7.5 million while arrangers Erste Bank and RHB Bank Berhad contributed $10 million apiece. Doha Bank, Emirates Bank International and State Bank of India (Singapore Branch) provided $4.5 million each while ICICI Bank (Singapore Branch), Natixis (Singapore Branch) and BankMuscat International took $4 million apiece. Export-Import Bank of Korea rounded up the consortium holding onto $2 million.

Proceeds are for working capital purposes.


GP IndustriesÆ S$68 million dual tranche bullet loan was signed last Monday after the facility was reduced from S$100 million.

Mandated lead arrangers HSBC and Oversea-Chinese Banking Corp provided S$10.23 million each. Participants Natixis lent S$10.42 million, KBC held S$10.05 million, Maybank committed S$9.98 million, Bank of East Asia pledged S$7.62 million, CIMB contributed S$4.98 million and United Overseas Bank took S$4.49 million.

Proceeds are for general corporate purposes.

A S$600 million three year credit for Venture Manufacturing was launched into senior syndication earlier this month via mandated leads Citi and DBS Bank.

The amortising loan pays a margin of 28bp over SOR and has an average life of 2.2 years.

The facility is slated to close within the second week of August. Proceeds are to refinance an existing debt facility and for working capital purposes.

South Korea

Hana FinancialÆs $500 million three year fundraising was signed on July 23 on a club basis via a consortium of eight mandated arrangers.

The bullet facility pays a margin of 95bp over Libor.

Allocations saw Woori Bank commit $150 million with Natixis contributing $75 million. Bank of East Asia, Dah Sing Bank and Industrial & Commercial Bank of China lent $50 million apiece while CITIC Ka Wah Bank provided $45 million. Calyon and Citi held $40 million each.

Proceeds are to refinance existing debt.

A $288 million 15 year ship financing for J.O.V, J.O.W and J.O.X Shipping has been signed via mandated lead arrangers and bookrunners BNP Paribas, Citi, ING Bank, Export-Import Bank of Korea and Sumitomo-Mitsui Banking Corp.


Everlight Chemical IndustrialÆs NT$700 million five year revolving credit has been signed via sole bookrunner Chinatrust Commercial Bank.

The deal features a margin of 50bp over the 90, 120 or 180 day primary CP rate and a commitment fee of 15bp.

Final allocations saw the bookrunner take NT$140 million with Taipei Fubon Commercial Bank holding NT$140 million as a co-arranger. Coming in as participants were Mega International Commercial Bank providing NT$120 million with First Commercial Bank, Hua Nan Commercial Bank and Taiwan Cooperative Bank contributing NT$100 million apiece.

Proceeds are to refinance an existing debt facility and for working capital purposes.

Lead arrangers Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp have postponed the close of syndication for Formosa Plastics Corp USAÆs $100 million five year revolver. The new deadline is late next week.

A few banks have joined already and the loan is likely to be oversubscribed. Proceeds are for general corporate purposes.

A NT$20.7 billion five year term loan for ProMos Technologies was signed last week (July 19) via mandated arrangers Bank of Taiwan, Chinatrust Commercial Bank, Hua Nan Commercial Bank, Land bank of Taiwan, Taiwan Business Bank and Taiwan Cooperative Bank.

The facility pays a spread of 70bp over the primary CP rate and a commitment fee of 15bp. There is a grace period of 24 months.

Allocations have been finalised with mandated arrangers Bank of Taiwan and Taiwan Business Bank contributing NT$4 billion and NT$3 billion respectively. Chinatrust Commercial Bank, Hua Nan Commercial Bank, Land Bank of Taiwan and Taiwan Cooperative Bank all provided NT$2.5 billion apiece. Coming in as a co-arranger was Mega International Commercial Bank holding NT$1.5 billion. Managers Agricultural Bank of Taiwan and Taipei Fubon Commercial Bank committed NT$500 million each. Chang Hwa Commercial Bank, Cathay United Bank, Taiwan Shin Kong Commercial Bank and Bank of Panhsin held NT$300 million apiece.

Banks were invited on four tiers. Arrangers committing NT$2.5 billion or above received management fees of 35bp, co-arrangers contributing NT$1 billion to NT$2.4 billion earned 20bp. Lead managers providing between NT$600 million and NT$999 million gained 10bp and managers holding NT$300 million to NT$599 million took 5bp.

Proceeds are to fund the construction of a 12-inch wafer plant and for the purchase of machinery.

SuperAlloy IndustrialÆs NT$3.1 billion multi-tranche financing has been signed via mandated lead arrangers Bank of Taiwan, Chang Hwa Commercial Bank, Fuhwa Commercial Bank, Hua Nan Commercial Bank, Taiwan Business Bank and Taiwan Cooperative Commercial Bank.

The facility is split into a NT$1.93 billion loan and two NT$581 million portions. All three tranches are term loans with a five year tenor, featuring a spread of 70bp over the primary CP rate and a commitment fee of 15bp.

Final allocations saw the mandated lead arrangers contribute NT$400 million each with the exception of Hua Nan Commercial Bank holding NT$500 million. Coming in as participants were Shin Kong Commercial Bank and Ta Chong Bank providing NT$200 million apiece while Far Eastern International Bank and Land Bank of Taiwan took NT$100 million each.

Proceeds are to fund the purchase of machinery, refinancing existing debt and for working capital purposes.
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