loan-week-july-39

Loan week, July 3-9

A roundup of the latest syndicated loan market news.

Australia

Envestra Victoria secured a A$280 million dual-currency facility on July 7 from bookrunners Commonwealth Bank of Australia and Westpac.

The deal is split into A$225 million and $45 million three-year term loans. Mandated lead arrangers Westpac, Commonwealth Bank of Australia and Sumitomo Mitsui Banking Corp have committed A$100 million, A$75 million and A$50 million respectively. Participants Bank of Nova Scotia provided $25 million, while Mega International Commercial Bank took $20 million.

The deal is guaranteed by all entities of Envestra Group and is secured by fixed and floating charges over the borrower and the guarantors. The financing, together with a A$75 million debt facility solely provided by ANZ, are to repay a $125 million bilateral bank loan and a $175 million medium term note maturing in 2009.

A A$105 million project financing for Mount Gibson Iron was secured on June 30 via joint bookrunners HSBC and National Australia Bank with BNP Paribas, Caterpillar Financial Australia and Oversea-Chinese Banking Corp coming in at lower tiers.

Proceeds are to amend a A$200 million loan signed in September 2007.

Orix Australia's ¥18.1 billion deal has been completed via bookrunners BNP Paribas and Calyon with ING joining as an equal-status lead arranger.

The three-year bullet loan is guaranteed by Orix Corp and proceeds are for working capital purposes.

Bangladesh

A BDT1.5 billion five-year term loan for BURO Bangladesh was signed on July 7 through sole bookrunner Citibank (Dhaka).

Syndication saw Agrani Bank, Dutch-Bangla Bank, Eastern Bank, Janata Bank, Mutual Trust Bank, Prime Bank, Pubali Bank, Sonali Bank, Southeast Bank, Standard Bank, The City Bank and United Commercial Bank participating at lower levels.

Proceeds are to expand the microfinance services in the agricultural sector.  

Hong Kong

An $85 million three-year term loan for Comba Telecom Systems has been upsized and signed via sole mandated lead arranger and bookrunner HSBC. Full syndication saw Bangkok Bank, Bank of Ayudhya, Cathay United Bank, Chang Hwa Commercial Bank, China Merchants Bank, China Minsheng Bank, Hua Nan Commercial Bank, Taiwan Business Bank and Xiamen International Bank joining in as participants.

Guaranteed by parent company Comba Telecom System Holdings, the deal was launched at $40 million in mid-2008. Proceeds are to finance the borrower's expansion into the international market and for other corporate development purposes.

India

Bhushan Power & Steel's Rs32.9 billion project financing has been sealed via sole mandated lead arranger and bookrunner State Bank of India.

The commitment fee for the seven-year term loan is 120bp per annum.

Final allocations saw the lead provide Rs5 billion, while participants Punjab National Bank and Bank of India gave Rs2.9 billion and Rs2.3 billion respectively. Central Bank of India committed Rs1.9 billion, while Allahabad Bank and Canara Bank lent Rs1.9 billion apiece. Andhra Bank, Corporation Bank, Oriental Bank of Commerce and Syndicate Bank took Rs1.5 billion each, while Union Bank of India held Rs1.3 billion. State Bank of Hyderabad and Indian Overseas Bank came in with Rs1.2 billion apiece, UCO Bank provided Rs1.1 billion, Bank of Baroda, Punjab & Sind Bank and United Bank of India each lent Rs1 billion, while State Bank of Bikaner & Jaipur, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore pledged Rs700 million apiece. Vijaya Bank joined in with Rs600 million.

Proceeds are to support phase IV of the construction of an integrated steel plant in Orissa, India.

Indonesia

A $150 million loan for Astra Agro Lestari was signed as a club deal last week via mandated lead arrangers Bank of Tokyo-Mitsubishi UFJ, Natixis, Oversea-Chinese Banking Corp, Standard Chartered Bank and Sumitomo Mitsui Banking Corp.

The three-year transaction is split into a $100 million term loan and a $50 million revolving facility.

Proceeds are for working capital purposes.

A Rp210 million debt for Bank Ekspor Indonesia was signed on July 6 via Bank of China, Bank of Tokyo-Mitsubishi UFJ, Citic Ka Wah Bank, ING Bank, Intesa Sanpaolo, Oversea-Chinese Banking Corp, PT Bank Ekonomi Raharja, PT Bank ICBC Indonesia, PT Bank Negara Indonesia (Persero), PT Bank Mandiri (Persero) and Sumitomo Mitsui Banking Corp.

The one-year term loan is priced at 200bp over Libor.

South Korea

Korean Airlines' $70 million eight-year term loan has been signed via mandated lead arrangers Natixis and NordLB on a club basis.

Proceeds are to support the purchase of one 777-200ER aircraft leased to Korean Airlines.

Taiwan

Nan Liu Enterprise's NT$550 million fundraising was inked on July 3 via bookrunners Mega International Commercial Bank and Taishin International Bank.

The three year term loan is priced at 182.5bp over the secondary CP rate and offers a commitment fee of 20bp.

Final allocations saw the bookrunners give NT$100 million each, while lead manager Chang Hwa Commercial Bank lent NT$100 million. Managers Bank of Kaohsiung, DBS, First Commercial Bank and Hua Nan Commercial Bank joined in with holds of NT$50 million apiece and Shanghai Commercial & Savings Bank committed NT$30 million. Bank of East Asia rounded off the syndicate with NT$20 million.

Proceeds are to refinance existing short-term facilities.

Sampo Corp's NT$2.4 billion financing was sealed on July 7 via coordinating arrangers Chang Hwa Commercial Bank, Ta Chong Bank and Taishin International Bank.

The three-year debt package comprises a NT$1.5 billion term loan, a NT$252 million revolving credit and a NT$630 million CP guarantee facility. All tranches are priced at 175bp over the primary CP rate with a commitment fee of 25bp.

Final allocations saw bookrunners Taishin International Bank contribute NT$419 million, while Chang Hwa Commercial Bank and Ta Chong Bank joined at the top with holds of NT$350 million each. Lead managers Mega Bills Finance Corp lent NT$350 million and Bank of Taiwan and International Bills Finance Corp came in with NT$280 million each. Managers Chinatrust Commercial Bank pledged NT$196 million, while Hua Nan Commercial Bank ended up with NT$196 million.

Proceeds are to refinance the NT$6 billion facility signed on July 21, 2006, and for working capital purposes.

Uni-president Enterprises Corp's NT$6 billion five-year facility was signed last week via a group of 10 mandated leads led by Chang Hwa Commercial Bank.

The transaction is split into a NT$5 billion revolving credit and a NT$1 billion CP guarantee facility. The revolver offers a spread of 80bp over the two-month, three-month or six-month secondary CP rate while the CP guarantee facility pays a guarantee fee of 70bp.

Syndication saw mandated lead arrangers Cathay United Bank, Chang Hwa Commercial Bank, Chinatrust Commercial Bank, DBS, E.Sun Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank, Mega International Commercial Bank, Taipei Fubon Commercial Bank and Taiwan Cooperative Bank commit NT$500 million each in the first tranche. In the second tranche, participants Mega Bills Finance Corp lent NT$400 million, while China Bills Finance Corp and International Bills Finance Corp came in with NT$300 million.

Proceeds are to refinance existing indebtedness, including convertible bonds due in Sept 2009, and for working capital purposes.

Unitech Printed Circuit Board Corp's $50 million dual-tranche loan was amended last week via coordinating arrangers Cathay United Bank, Hua Nan Commercial bank, Industrial Bank of Taiwan, Taishin International Bank and Yuanta Commercial Bank.

The three-year transaction comprises a $50 million stand-by letter of credit facility and a $15 million revolving credit. However, the total amount of the facility cannot exceed $50 million.

Amendments include raising the guarantee fee for tranche 1 from 70bp to 90bp as well as imposing a pre-tax pricing floor of 3.15% for tranche 2. The margin on tranche 2 will increase to 85bp over Libor if the debt-to-net worth ratio of the borrower exceeds 1.25 times.

Proceeds are for general corporate purposes.

Valleyfield Limited (Samoa)'s $47 million transaction was signed last week via coordinating arrangers Land Bank of Taiwan, Taiwan Business Bank and Taiwan Cooperative Bank with First Commercial Bank joining at lower levels.

Proceeds are for working capital purposes.

¬ Haymarket Media Limited. All rights reserved.

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