loan-week-july-8--aug-4

Loan Week, July 8 - Aug 4

A round up of the latest syndicated loan market news.
Australia

The A$995 million multi-tranche facility for Myer is still progressing in general syndication. Credit Suisse, Goldman Sachs JB Were and National Australia Bank are leading the deal. Thus far, the financing has secured at least 10 commitments from banks. A handful of banks are said to be in the final stages of gaining credit approvals.

The six year facility is split into an A$675 million amortising term portion, an A$300 million revolver and an A$20 million capital expenditure facility. Proceeds will be used to support the A$1.4 billion Newbridge and Texas Pacific-led leveraged buyout of the Myer department store chain.


China

The $425 million multi tranche financing for AU Optronics (Suzhou) Corporation and AU Optronics (Xiamen) Corporation was signed on Wednesday (August 2). A total of 21 banks are participating the deal.

China Southern Airlines has successfully raised $450 million via a consortium of seven banks. Mandated lead arrangers are BNP Paribas, Calyon and SG while three other lenders are BayernLB, DekaBank Deutsche Girozentrale, KfW and NordLB. All mandated lead arrangers are running the books.

The 10 year facility will be used to support the purchase of four Boeing 737-700 and six Airbus A320-200. Signing took place on Monday (July 31).

Jiangsu Century Texhong Textile, Taizhou Texhong Yintai Textile, Xuzhou Texhong Tims Textile and Texhon (China) InvestmentÆs $35 million three year fundraising was signed on Tuesday (August 1).

Coordinating arranger ABNAMRO contributed $11 million while arranger Oversea-Chinese Banking Corporation committed $6 million. Citic Ka Wah Bank, Korea Development Bank and Korea Exchange Bank joined as senior managers with tickets of $5 million apiece and Asia Commercial bank ended up with $3 million. Proceeds are for general corporate purposes.


Joint mandated lead arrangers and bookrunners HSBC and Mizuho Corporate Bank are set to launch Long Chen (Zhejian) Paper FactoryÆs $68 million five year financing. The borrowerÆs Taiwanese parent company, Long Chen Paper Corp last visited the market in April 2005 when it raised NT$1.2 billion. That five year facility offered a spread of 75bp over CP rate. Proceeds were used to refinance existing debt and for working capital requirements.

The second biggest home-appliance retailer, Sunning Appliance has secured a Rmb10 billion credit line from state policy lender China Development Bank to fund its expansion plans.

Zhenjiang Union Chemical Industry Corp (Union) and Zhuhai Unicizers Industrial Corp (Unicizers)Æs $100 million renminbi equivalent fundraising has been closed via mandated lead arrangers BNP Paribas and Mizuho Corporate Bank. The three year facility has received commitments from nine banks with total subscriptions of $138 million. However, the facility size is unlikely to be increased according to bankers close to the deal. The dual tranche financing is guaranteed by the borrowersÆ Taiwanese parent company, UPC Technology Corp.


Hong Kong

Allocations for Champion REITÆs HK$7.2 billion financing have been finalised. The three year facility saw seven banks join in general syndication.

Mandated lead arrangers are Bank of East Asia, Citigroup Global Markets Asia, Hang Seng Bank, HSBC, ICBC Asia, JP Morgan Securities Asia and SMBC û ended up with HK$762.5 million apiece. Bank of China came in with a hold of HK$662.5 million and joined as an equal status lead arranger.

Arrangers are UOB Asia and Liu Chong Hing Bank committing HK$500 million and HK$200 million respectively. Five others û DBS Bank, DZ Bank, Malayan Banking, Nanyang Commercial Bank and Tai Fung Bank û joined as managers with tickets of HK$100 million each.

The revolver is priced at 53bp over Hibor and proceeds will be used to support a real estate investment trust of Great Eagle Holdings.

Chinese Estates (Tung Ying Building)Æs HK$2.26 billion fundraising has been allocated. The four-and-a-half-year facility saw 11 banks participate in syndication.

Joint mandated lead arrangers Bank of China (Hong Kong) and Standard Chartered ended up with HK$350 million and HK$220 million respectively. Co-ordinating arrangers are Dah Sing Bank and DBS Bank holding HK$250 million each. Three others are Liu Chong Hing Bank, Nanyang Commercial Bank and SMBC contributing HK$180 million apiece.

Arrangers are Bank of China (Macau) and Wing Lung Bank providing HK$150 million each, Cathay United Bank and Tai Fung Bank lending HK$100 million apiece. Lead managers are Bank of East Asia and Hua Nan Commercial Bank û joined with commitments of HK$75 million each.

The facility is guaranteed by Chinese Estates Holdings and proceeds will be used to fund the redevelopment of Tung Ying Commercial Building.

Signing is targeted for mid-August.

Rumor has it that Hutchison Whampoa is seeking a HK$9 billion financing. The borrowerÆs subsidiary, AS Waston last tapped the market in July 2006 when it raised Ç600 million via a five year term facility. That facility was priced at 27bp over Euribor and was led by Calyon, Natexis Banques Populaires, SG and Banca Intesa.

K Wah Stones HoldingsÆ HK$1.5 billion revolver has been launched via mandated co-ordinating arrangers Bank of China (Hong Kong), Hang Seng Bank and Standard Chartered. The financing is split equally between a three year portion that is priced at 55bp over Hibor and a five year tranche that features a margin of 58bp over Hibor.

Banks are being invited to join on three tiers. Co-ordinating arrangers providing HK$200 million or above earn 34bp, translating to a top level all-in of 65bp over Hibor. Co-arrangers lending HK$130 million to HK$190 million receive 26bp for an all-in of 63bp while senior managers taking HK$50 million to HK$120 million get 18bp for an all-in of 61bp over Hibor.

The Hong Kong-listed parent company, K Wah International Holdings is acting as a guarantor. Proceeds will be used for general working capital.

Banks have until August 17 to respond.

Allocations have been finalised after a long wait following the close of Lee & Man Paper ManufacturingÆs HK$1 billion five year facility. A total of 12 banks are joining the deal.

Mandated co-ordinating arrangers are BNP Paribas, Bank of China (Hong Kong), Bank of Communications, Bank of Tokyo-Mitsubishi UFJ, Citigroup, China Construction Bank, Export Development Canada, Fortis Bank, ICBC Asia, Mizuho Corporate Bank, SMBC and UOB Asia û joined with holds of HK$83.33 million each.

Citigroup is running the books on a sole basis. The five year facility offers a margin of 58bp over Hibor and proceeds will be used to refinance existing debt and for working capital requirements.

Signing was held on Monday (July 31).

Superior International FinanceÆs $6.45 billion facility has been signed. Sole mandated lead arranger Standard Chartered (Hong Kong) saw seven banks join in general syndication. They are Bangkok Bank Public (Hong Kong), Cathay United Bank (Hong Kong), Bank Sinopac, Export Development Canada, Mizuho Corporate Bank (Hong Kong), Hang Seng Bank and Citic Ka Wah Bank.

The three year facility offers a spread of 85bp over Libor and is guaranteed by Roly International Holdings. Proceeds will be used to refinance existing debt and for general corporate purposes.

India

INCAT InternationalÆs $60 million three year financing has been completed via four mandated lead arrangers. They are Export Development Canada taking $20 million and Bank of Tokyo-Mitsubishi UFJ pledging $10 million while Calyon and Standard Chartered are providing $15 million each.

The three year facility has been pre-funded in February and proceeds will be used to repay existing debt and for general corporate purposes.


Japan

The Ñ1.3 billion dual tranche term facility for Aoyama Mainland was signed on July 7. A total of four banks are participating in the transaction. Mandated arranger Bank of Tokyo-Mitsubishi UFJ provided Ñ632 million while other lenders Bank of Yokohama took Ñ300 million, Senshu Bank absorbed Ñ300 million and BOT Lease contributed Ñ100 million. Proceeds are to finance the acquisition of a real estate property.

Be-Free Soft signed a Ñ2 billion six month financing. Mandated arranger Bank of Tokyo-Mitsubishi UFJ took Ñ900 million.

Five other lenders are Shoko Chukin Bank taking Ñ500 million, Bank of Yokohama committing Ñ300 million, Mitsubishi UFJ Trust and Banking Corporate, Tokyo Tomin Bank and Resona Bank joined with tickets of Ñ100 million each. Proceeds are for working capital supposes.

Pasco Corporation has successfully raised Ñ25 billion 364-day credit from the market via mandated lead arranger Bank of Tokyo-Mitsubishi UFJ.

Among the mandated lead arranger Bank of Tokyo-Mitsubishi UFJ took Ñ9.2 billion while co-arranger Mitsubishi UFJ Trust and Banking pledged Ñ8 billion apiece. Lenders Mizuho Bank committed Ñ2.9 million, Hokuriku Bank and Sumitomo Trust & Banking provided Ñ1 billion apiece. Proceeds are for working capitals requirements.

Nissan Rinkai ConstructionÆs Ñ4.5 billion loan was signed on July 28. Mandated arranger Bank of Tokyo-Mitsubishi UFJ held Ñ4 billion. Three other participants Kyakujushi Bank provided Ñ2.5 million, Eighteenth Bank lent Ñ1.5 million and Hyakujushi Bank contributed Ñ1 million. Proceeds are for the acquisition of real estate purposes.

The Ñ50 billion fundraising for JACCS has been completed via sole mandated arranger Bank of Tokyo-Mitsubishi UFJ.

Lenders Mizuho Corporate Bank held Ñ10 billion while Norinchukin Bank, Mitsubishi UFJ Trust and Banking Corporate and Sumitomo Mitsui Banking Corporation took Ñ4 billion apiece, Hokkaido Bank, North Pacific Bank and Shizuoka Bank each committed Ñ2 billion. Five other lenders 77 Bank, Sumitomo Trust & Banking, Chiba Bank, Hachijuni Bank and Resona Bank ended up with commitments of Ñ1 billion each.

Proceeds are for working capital purposes and signing was held on July 13.

Hotel OkuraÆs Ñ2 billion term facility was signed on July 26. A total of 16 banks are participating in the deal.

Sole arranger is Bank of Tokyo-Mitsubishi UFJ pledging Ñ50 million. Lenders are Aozora Bank holding Ñ20 million, Chiba Bank, Chuo Mitsui Trust and Banking, Gunma Bank, Nanto Bank, Norinchukin Bank and Yamaguchi Bank contributing Ñ14 million apiece, Fukui Bank and Kiyo Bank each providing Ñ9 million. Aomori Bank, Bank of Fukuoka, Development Bank of Japan, Hokuriku Bank and Nishi-Nippon City Bank also participating with holds of Ñ5 million each and Minato Bank taking Ñ3 million. Proceeds are for capital investment funding.


Philippines

Smart CommunicationsÆ $44.2 million financing was signed on Monday (July 31) in Manila. Mandated lead arrangers are ABN Amro contributing $15 million, SMBC taking $13.2 million and Standard Chartered holding $7 million while Mizuho Corporate Bank is lending $9 million. The five year facility will be used to refinance existing debt and for working capital purposes.
Singapore

The $138 million fundraising for Hyflux has been completed via a total of 14 banks. The five year has been upsized from $100 million due to a resounding response in general syndication. Joint mandated lead arrangers BNP Paribas and DBS Bank saw 12 banks join in general syndication.

Mandated lead arrangers BNP Paribas and DBS Bank ended up with $20 million each. Bank of Taiwan (Singapore) and United Overseas Bank took $16 million and $12 million respectively and came in as lead arrangers. Arrangers are Rabobank International (Singapore) lending $11 million while four others û Bank of China (Singapore), Bumiputra-Commerce Bank (Singapore), Land Bank of Taiwan (Singapore) and Oversea-Chinese Banking Corp û joined with commitments of $9 million apiece.

Lead managers include State Bank of India providing $6 million, Chang Hwa Commercial Bank committing $5 million while Bank of East Asia, Hua Nan Commercial Bank and International Commercial Bank of China (Singapore) contributing $4 million each.

The facility is split equally between a term portion and a revolver, both offering a spread of 93bp over Libor. Proceeds will be used to repay existing debt and for working capital requirements.

Signing took place on Tuesday (August 1).

Market talk is that Las Vegas Sands Corp is tapping the market for a $3.5 billion loan to finance the building of a casino and resort development in Singapore. At least five banks including Citigroup, Goldman Sachs, Lehman Brothers, Merrill Lynch and Morgan Stanley are close to be being mandated.

Syndication of Neptune Orient Lines (NOL) and APL (Bermuda)Æs $350 million fundraising has yet to close with banks expected to revert today (Friday). Thus far, the seven year facility has secured commitments from at least 10 banks. The loan is priced at 41.5bp over Libor. Standard Chartered is leading the deal.

Sole mandated lead arranger Standard Chartered has closed the books for Parkway HoldingsÆ S$400 million financing. The five year facility saw 14 banks participate in general syndication. The loan features a spread of 46bp over Sibor and proceeds will be used for general corporate purposes. Allocations will be finalised shortly.


South Korea

The $300 million financing for Shinhan Bank has been closed as a club via 13 banks. Mandated lead arrangers are Barclays Capital, BayernLB, BNP Paribas, DBS Bank, HSBC, Lloyds TSB Bank, Mizuho Corporate Bank and Oversea-Chinese Banking Corp lending $25 million each. Five others û Calyon, HSH Nordbank, ING, SMBC and SwedBank-Sparbanken Sverige û joined with holds of $20 million apiece.

The 364-day facility features a margin of 6bp over Libor and proceeds will be used to refinance an existing facility signed in July 2005.

Signing took place on July 28.


Taiwan

A consortium of 18 banks has won the mandate for AU OptronicsÆ NT$50 billion facility. The arranger group comprises ABN Amro, Agricultural Bank of Taiwan, Bank of China, Bank of Taiwan, Bank of Tokyo-Mitsubishi UFJ, Cathay United Bank, Chinatust Commercial Bank, Chang Hwa Commercial Bank, E. Sun Commercial Bank, Hua Nan Commercial Bank, ING Bank, Industrial Bank of China, Industrial Bank of Taiwan, Land Bank of Taiwan, Taiwan Cooperative Commercial Bank, Taipei Fubon Commercial Bank, Taipei International Commercial Bank.


Inventive International is reviewing proposals for a five year $100 million loan from groups of banks. The borrowerÆs parent company, Ya Hsin Industrial last visited the market in April 2006 when it raised NT$2.4 billion ($73.9 million) via a four year revolving credit. That facility was arranged by Bank of Taiwan, Far Eastern International Bank and Taiwan Cooperative Bank.

Teco Electronics & MachineryÆs NT$4 billion facility is set to complete syndication via mandated arranger Bank of Taiwan, First Commercial Bank, Hua Nan Commercial Bank and Taiwan Cooperative. A total of six banks are joining the facility.

The deal offers a margin of 37.5bp over CP rate. Fees to the market are on three tiers. Lead managers providing NT$500 million or above gain 8bp, managers offering NT$300 million to NT$499 million earn 5bp and participants lending NT$200 million to NT$299 million gets 3bp.

Proceeds are for working capital purposes and signing ceremony will be held on next Monday (August 7).
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