Loan week, July 24-30

A roundup of the latest syndicated loan market news.


A A$240 million dual-tranche facility for Alesco has been secured as a club deal through mandated lead arrangers ANZ, BNP Paribas, Commonwealth Bank of Australia and National Australia Bank.

The debt is split equally into two- and three-year tranches, priced at 345bp and 385bp over BBSY respectively.

Proceeds are to refinance existing bilateral loans.

A A$500 million three-year debt package for FBG Group has been two times oversubscribed and upsized from A$300 million via mandated lead arrangers and bookrunners ANZ, Bank of Tokyo-Mitsubishi UFJ and Commonwealth Bank of Australia.

The dual-tranche financing comprises a fully-drawn portion and a revolving credit in Australian and US dollar denominations.

Proceeds are for general corporate purposes.


Minmetals Capitals & Securities' $200 million three-year term loan has been signed via a consortium of six banks on a club basis.

Mandated lead arrangers Bank of China (Hong Kong) contributed $90 million and Bank of Tokyo-Mitsubishi UFJ committed $50 million. Wing Lung Bank provided $30 million, while ICBC Asia, Banca Monte dei Paschi di Siena and Mizuho Corporate Bank held $10 million apiece.

Guaranteed by China Minmetals Corp, the financing pays a spread of 100bp over Libor.

Proceeds are to refinance a $200 million three-year facility signed in July 2006.

Hong Kong

Natixis has been mandated to bookrun, on a sole basis, Right Lane's $100 million three-year term loan, which is said to be oversubscribed and is likely to be upsized.

The deal features a greenshoe option and is guaranteed by parent company Legend Holdings, which is also the majority shareholder of China's largest PC maker, Lenovo.

The final deal amount hasn't been decided yet, although signing is expected to take place in early August.

Proceeds are to refinance existing indebtedness and for general corporate purposes.


Mercator Offshore's $155 million funding has been sealed via sole bookrunner ICICI Bank. Bank of Baroda, Indian Bank, Indian Overseas Bank and State Bank of India came in as mandated lead arrangers.

The six-year term loan pays a spread of 500bp over Libor.

Final allocations saw the lead lend $80 million, while equal-status lead arrangers State Bank of India and Indian Overseas Bank provided $25 million and $20 million respectively. Bank of Baroda and Indian Bank took $15 million apiece. There is an additional $35 million eight-year revolving and term loan facility solely provided by ICICI Bank.

Proceeds are to partially finance a 350 foot jackup rig. 

A Rs16.6 billion 15-year project financing for Vidarbha Industries Power was sealed on July 24 through sole bookrunner Axis Bank.

Final allocations saw the lead provide Rs3.6 billion, while participants Union Bank, State Bank of India and United Bank of India gave Rs2.7 billion, Rs2.3 billion and Rs1.4 billion respectively. Allahabad Bank, Dena Bank, South Indian Bank, Syndicate Bank and UCO Bank provided Rs910 million apiece. Life Insurance Corp of India pledged Rs720 million, while Corporation Bank, Karur Vysya Bank and State Bank of Hyderabad committed Rs450 million each.

Proceeds are to finance the development of a 600MW captive power project.  


Engro Foods' PKR 1.2 billion fundraising has been completed via mandated lead arrangers JS Bank, MCB Bank, United Bank and Standard Chartered Bank (Pakistan).

The five-year term loan is priced at 260bp over six-month Kibor.

The four mandated leads received commitments from participants Bank of Khyber and Pak Brunei Investment.

Proceeds are for capital expenditure purposes.

A PKR2.5 billion financing for Sui Southern Gas has been sealed as a club deal via mandated leads Askari Bank, National Bank of Pakistan, Standard Chartered Bank (Pakistan) and United Bank.

The three-year term loan pays a spread of 195bp over three-month Kibor.

Proceeds are for capital expenditure purposes.


CSE Global's $50 million three-year facility was signed on July 24 via mandated lead arrangers DBS, HSBC, Oversea-Chinese Banking Corp and United Overseas Bank on a club basis.

Proceeds are for refinancing purposes.

South Korea

Korea Gas Corp's $482 million 10-year term loan has been signed via a consortium of 11 banks and other undisclosed financial institutions.

Syndication saw ANZ, Bank of Nova Scotia, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Calyon, Credit Industrial et Commercial, Korea Development Bank, NIBC Bank, Natixis, Sumitomo Mitsui Banking Corp and WestLB join in the facility. 

Proceeds are to repay the borrower's existing debt facilities.

An $825 million equivalent debt package for Oriental Brewery has been signed via bookrunners Calyon, ING, J.P. Morgan, Natixis and Nomura International. The deal marks the first LBO financing in Asia ex-Japan so far this year.

The fundraising is split into a $760 million five-year term loan and a $65 million four-year revolver. The initial margin of the loan is 600bp but will drop to 525bp when the holding company merges into the operating company.

For the US dollar portion, final allocations saw mandated lead arrangers Calyon, Nomura International and Natixis commit $55 million, $50 million and $45 million respectively. WestLB took $40 million and ING provided $35 million, while DBS and UOB contributed $30 million each. J.P. Morgan came in with a $25 million ticket.

For the Korean won portion, Korea Development Bank committed W175billion, Hana Bank took W150 billion, Standard Chartered Bank took W125 billion and Shinhan Bank provided W100 billion. Korea Exchange Bank took W80 billion, while HSBC held W63.8 billion. Sumitomo Mitsui Banking Corp joined with a hold of W38.55 billion and National Federation of Fisheries Cooperatives - Suhyup Bank rounded out the group with a W20 billion ticket.

Proceeds are to support the $1.8 billion KKR-led leveraged buyout of Oriental Brewery.


Syndication of Chi Mei Optoelectronics' NT$30 billion five-year fundraising is ongoing via mandated leads Bank of Taiwan, Bank Sinopac, Cathay United Bank, Chang Hwa Commercial Bank, First Commercial Bank, Land Bank of Taiwan, Mega International Commercial Bank and Taiwan Cooperative Bank.

The five-year term loan offers a spread of 75bp over the primary CP rate. There is a pricing floor of 2.33% after tax.

Banks have been invited to join as equal-status arrangers, or on one of three levels in general syndication. Equal-status arrangers committing NT$3 billion or above get 43bp, while participants joining in with NT$1.5 billion to NT$2.9 billion receive 20bp. Participants contributing NT$1 billion to NT$1.49 billion get 10bp and those who commit NT$500 million to NT$999 million gain 7bp.

Proceeds are to refinance existing debt facilities. Syndication is expected to close in two weeks.

Powerchip Semiconductor Corp's NT$20 billion five-year financing that was signed in August 2007 has been amended via a group of 15 mandated leads led by Cathay United Bank.

As part of the amendment, the tenor has been extended by six months, meaning the borrower is required to repay the facility from October 2009 instead of from April 2009.

Bank of Taiwan, Cathay United Bank, China Development Industrial Bank, Chinatrust Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank, Industrial Bank of Taiwan, Land Bank of Taiwan, Mega International Commercial Bank, Shin Kong Commercial Bank, Shin Kong Life Insurance, Ta Chong Bank, Taipei Fubon Commercial Bank, Taishin International Bank, Taiwan Business Bank and Taiwan Cooperative Bank were the mandated lead arrangers in the original facility.

Four banks - Cathay Life Insurance, Citigroup, Taichung Commercial Bank and Yuanta Commercial Bank - joined in general syndication of the original facility, while Agricultural Bank of Taiwan and Far Eastern International Bank came in as participants in the amended facility.

Proceeds are to purchase machinery.

Tatung Global Strategy Investment (BVI)'s $40 million transaction has been sealed via sole bookrunner Taishin International Bank.

The six-month bridge facility is priced at 125bp over three-month Libor.

Syndication saw the sole lead commit $30 million, while participant King's Town Bank joined in with $10 million.

Proceeds are to support the borrower's purchase of convertible bonds issued by Chunghwa Picture Tubes from Warburg Pincus.

A ¥16.26 billion ship financing for Wisdom Marine Line is in the market via mandated lead arrangers Mega International Commercial Bank, with Land Bank of Taiwan and Taiwan Cooperative Bank joining at the top.

The 8.5-year term loan is split into a ¥15 billion portion and a ¥1.26 billion tranche. Both are priced at 137.5bp over three-month Tibor.

Bookrunners and mandated lead arrangers joining in with ¥3 billion or above get 28bp. Banks coming in as participants with a ticket of ¥2 billion to ¥2.9 billion earn 20bp, while participants contributing ¥1.5 billion to ¥1.9 billion and ¥1 billion to ¥1.49 billion gain 15bp and 10bp respectively.

Currently, mandated lead Mega International Commercial Bank has committed ¥3.2 billion, while Land Bank of Taiwan and Taiwan Cooperative Bank have given ¥3 billion each. Bank Sinopac, Bank of Taiwan and E.Sun Commercial Bank have pledged ¥1 billion to join as participants.

Proceeds are for the purchase of seven bulk carriers. Signing is slated for the end of August.

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