Loan Week, July 7-13

A roundup of the latest syndicated loan market news.

APT PipelinesÆ A$2 billion dual tranche facility has been signed via a syndicate of 19 banks. The facility was oversubscribed and increased from A$1.8 billion. The deal was funded in June by mandated arrangers ANZ Investment Bank, Toronto-Dominion Bank and Westpac.

The deal is split equally into two A$1 billion revolvers with tenors of four and six years respectively.

ANZ Investment Bank, Toronto-Dominion Bank and Westpac committed A$170 million apiece while co-arrangers ABN AMRO and BNP Paribas contributed A$155 million each. Citi, Mizuho Corporate Bank and Royal Bank of Scotland each provided A$130 million. Bank of Tokyo-Mitsubishi UFJ, Commonwealth Bank of Australia and Dexia Bank, DNB Nor Bank, Royal Bank of Canada and WestLB held A$90 million apiece.

Joining in as lead managers were BayernLB, Banco Bilbao Vizcaya Argentaria, Fortis, National Australia Bank and Sumitomo Mitsui Banking Corp taking A$50 million each.

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

Mandated arrangers ANZ Investment Bank, Deutsche Bank and JP Morgan have completed a A$1.8 billion one year bullet loan as a club for ING Industrial Fund.

The arrangers have taken an equal share of A$600 million each, and the facility is expected to be refinanced and syndicated upon maturity.

HVB Bank, National Australia Bank and Royal Bank of Scotland have funded a $270 million dual tranche financing for Coogee Resources.

The six year facility is split into a $220 million term portion and a $50 million credit.

The funds are to finance a $356 million project which entails the development and exploitation of oil reserves in Montara, Skua, Swift/Swollow oil fields in the Timor Sea.

The deal is slated to be launched into syndication at the end of July.

WesfarmersÆ A$10 billion syndicated loan has been underwritten by mandated arrangers ANZ Investment Bank, BNP Paribas and National Australia Bank.

The facility is considered to be the largest corporate financing to be undertaken in Australia, and will launch into general syndication once the terms have been finalised.

The funds are to support WesfarmersÆ offer to acquire Coles Group.

Hong Kong

A HK$700 million three year revolver for Citic Securities has been inked via sole mandated lead arranger HSBC which provided HK$90 million.

Bank of East Asia and Citic Ka Wah Bank committed HK$80 million apiece. Arrangers Mizuho Corporate Bank contributed HK$70 million while Bank of China held HK$50 million.

Co-arrangers Bank of China (Macau) lent HK$45 million while Dah Sing Bank, Oversea-Chinese Banking Corp and United Overseas Bank took HK$40 million apiece.

Senior managers China Construction Bank held HK$35 million while Hang Seng Bank and Industrial & Commercial Bank of China each ended up with HK$30 million.

A HK$2 billion five year term loan for COSCO-HIT (HK) Terminals has been launched into general syndication via mandated arrangers Bank of China (Hong Kong Branch), Bank of Tokyo-Mitsubishi UFJ, Hang Seng Bank and Mizuho Corporate Bank. The deal has already been funded.

The facility pays a margin of 25bp over Hibor and banks have been invited to join on three tiers. Arrangers coming in with HK$150 million and above receive 25bp, co-arrangers providing between HK$100 million and HK$140 million earn 24bp and managers contributing HK$50 million to HK$90 million gain 15bp in management fees.

Proceeds are for working capital purposes and to refinance existing debt. Commitments are due by July 28.

HKR InternationalÆs HK$2.5 billion five year revolver has been closed and allocated via a consortium of 17 banks. The deal was oversubscribed due to an enthusiastic market response and upsized from HK$2 billion.

Mandated arrangers Calyon and HSBC contributed HK$225 million each while Standard Chartered and arrangers Bank of Tokyo-Mitsubishi UFJ and China Construction Bank committed HK$200 million apiece.

Bank of Communications and DBS Bank each provided HK$175 million while Industrial & Commercial Bank of China, Shanghai Commercial Bank and Wing Lung Bank took HK$145 million each.

Co-arrangers Bank of Communications held HK$135 million while Mizuho Corporate Bank and Tai Fung Bank lent HK$125 million each.

Joining as lead managers with holds of HK$70 million apiece were Bank of East Asia, Chong Hing Bank, Maybank and Nanyang Commercial Bank.

The signing ceremony is expected to take place at the end of July.

MTR Corp has sent out RFPs for a HK$10 billion financing to fund its merger with Kowloon Canton Railway Corp.

Bank of China, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Citi, Hang Seng Bank, HSBC and Standard Chartered are rumoured to have won the mandate.


Syndication has closed for Mercator Lines (Singapore)Æs $175 million 10 year fundraising via original mandated arranger ICICI Bank.

BNP Paribas, DVB Bank and Hypovereinsbank have joined the facility at the top while four banks have joined in general syndication.

The four are NIBC coming in with commitments of $30 million, DnB Nor Bank holding $20 million and Credit Industriel et Commercial and Rabobank with holds of $15 million each.

The funds are to purchase three bulk carriers and the signing ceremony is slated for the end of the month.

Syndication is still ongoing for Reliance CommunicationsÆ $1 billion six year term financing via mandated arrangers ABN AMRO, Barclays Capital, BNP Paribas, Calyon, HSBC, Mizuho Corporate Bank and Standard Chartered.

Five to six banks are still awaiting approvals to join while Dexia Bank, Fortis and ING Bank have already joined the facility.

Banks have until July 23 to respond.

Vedanta ResourcesÆ $1.1 billion one year bridge financing has received four commitments in sub-underwriting. Abu Dhabi Commercial Bank, Calyon, DBS Bank and Sumitomo Mitsui Banking Corp have joined original mandated leads ABN AMRO, Barclays, Citi and ICICI Bank at the top.

The loan offers a margin of 30bp over Libor with all-in pricing of 73bp.

The four banks joining as equal-status mandated lead arrangers committed $125 million apiece.

Mandated arranger titles are available for holds of $125 million and $100 million with participation fees of 30bp and 20bp respectively.

Proceeds are to fund the purchase of a 51% stake in Sesa Goa, an iron-ore exporter. General syndication is expected to close in the next couple of weeks.


ANZ Investment Bank, Banc of America Securities Asia, Barclays Capital, Deutsche Bank and UBS have launched the $1.25 billion seven year portion of Melco PBL Entertainment (Macau)Æs $2.75 billion fundraising into sub-underwriting.

The deal comprises a $1 billion term loan and a $250 million revolver. The remaining $1.5 billion term loan B will be syndicated in the US market.

Banks are expected to revert by the end of July.

South Korea

A $113.7 million 12 year credit for Asiana Airlines is expected to sign by the end of the week via mandated arrangers Allco Financial Group and Korea Development Bank.

Allco Financial Group held $45.1 million that was not syndicated; while Korea Development Bank syndicated the remaining $68.6 million.

The multi-tranche facility comprises a $28 million portion with an average life of 4.9 years, a $28.4 million loan with an average life of 6.11 years and a $12.2 million letter of credit with an average life of 5.37 years.

Syndication saw Korea Development Bank holding $46.5 million. Coming in as co-arrangers were Bank of Tokyo-Mitsubishi UFJ and China Construction Bank contributing $12.1 million and $10 million respectively.

Proceeds are to support the purchase of aircraft.

Daegu BankÆs $120 million one year facility was signed on July 5 via mandated lead arrangers BayernLB, Calyon, HSBC, Landesbank Baden-Wurttemberg (Singapore Branch), Oversea-Chinese Banking Corp, Standard Chartered Bank (Hong Kong Branch) and Sumitomo Mitsui Banking Corp. All the banks acted as bookrunners with the exception of BayernLB and Oversea-Chinese Banking Corp.

The bullet term loan pays a spread of 7bp over Libor.

Final allocations saw mandated lead arrangers committing $10 million apiece with the exception of BayernLB contributing $15.5 million. Coming in as lead arrangers were Commerzbank (Hong Kong Branch) and Banque et Caisse dÆEpargne delÆEtat providing $15 million and $10 million respectively.

Arrangers Banca Popolare di Verona took $7.5 million with Banca Monte dei Paschi di Siena (Hong Kong Branch) and Intesa Sanpaolo (Hong Kong Branch) holding $5 million apiece. Toronto-Dominion Bank held $2 million as manager.

Proceeds are for general corporate purposes.


Boltun CorpÆs $18 million dual tranche facility has been completed as a club via a syndicate of six banks.

The three year deal comprises a $12 million letter of credit and a $6 million term portion.

Chang Hwa Bank, China Development Industrial Bank, Chinatrust Commercial Bank, Hua Nan Bank, Mega International Commercial Bank and Taipei Fubon Commercial Bank each took $3 million.

A $350 million five year financing has been completed for Wealthplus Holdings via mandated arrangers BNP Paribas and Citi, each holding $25 million.

Joining as arrangers and taking $24 million each were Banco Bilbao Vizcaya Argentaria, Bank of Tokyo-Mitsubishi UFJ, BayernLB, Bank of China, Chang Hwa Commercial Bank, DBS Bank, E Sun Commercial Bank, Mizuho Bank, Nanyang Commercial Bank, Shinsei Bank and Sumitomo Mitsui Banking Corp.

Coming in as lead managers were Chinatrust Commercial Bank, Land Bank of Taiwan, Mega International Commercial Bank and Taipei Fubon Bank with holds of $9 million apiece.

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