loan-week-june-612

Loan week, June 6-12

A roundup of the latest syndicated loan market news.
Australia

CLP Australia FinanceÆs A$300 million one-year fundraising has been completed via lead arrangers Commonwealth Bank of Australia and National Australia Bank as a club deal. TRUenergy Holdings is acting as the guarantor.

A A$360 million dual-tranche loan for QIC Retail was sealed on June 4 via mandated leads Commonwealth Bank of Australia and Suncorp-Metway on a club basis.

The facility is split into two A$180 million term loans with a two-year and a four-year tenor.

Allocations saw the lenders provide A$180 million each.

Tatts GroupÆs A$1.1 billion multi-tranche fundraising was signed on June 5 via mandated arrangers and bookrunners ANZ, Commonwealth Bank of Australia, National Australia Bank, Royal Bank of Scotland and Westpac Banking Corporation.

The loan is split into three revolvers, a A$220 million one-year credit, a A$691 million three-year tranche and a A$189 million five-year portion.

Final allocations saw Westpac contributing A$250 million, while the other four mandated leads provided A$200 million apiece. Coming in as a lead manager was BNP Paribas with a hold of A$50 million.

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

China

China Central PlaceÆs $400 million two-year debt package was simultaneously launched into senior and general syndication last week via sole mandated arranger Credit Suisse.

Banks have until the end of June to revert. Proceeds are to refinance a $350 million loan signed in 2006.

Syndication of Shanghai Forte LandÆs Rmb1 billion three-year facility is coming to an end with one more bank expected to join. The mandated leads are Hang Seng Bank and Standard Chartered Bank.

The bullet loan pays a spread of 110% of the PBOC rate and is likely to be completed on a club-style basis. So far syndication has seen two banks joining in û China Zheshang Bank and First Sino Bank.

The funds are to support the purchase of two buildings in Beijing.

Shanghai Zhenhua Port MachineryÆs $125 million three-year financing was launched into general syndication earlier this week (June 10) via original mandated leads and bookrunners Calyon and Royal Bank of Scotland.

The bullet loan pays a spread of 215bp over Libor.

So far, senior syndication saw four banks joining at the top-level û BayernLB, Commerzbank, Fortis and Industrial & Commercial Bank of China (Asia). The loan has already been upsized from $100 million.

Proceeds are for working capital requirements.

A $200 million three-and-a-half-year credit for Wuhan Iron & Steel is being well received in syndication with seven firm commitments so far. The bookrunners are Calyon and Royal Bank of Scotland.

The deal features a spread of 180bp over Libor, flexed-up from 110bp. Syndication is slated to close soon.

The funds are for working capital requirements.

Hong Kong

Champion Real Estate Investment TrustÆs HK$2.95 billion five-year dual-tranche financing was completed on June 3 via mandated leads Bank of China (Hong Kong Branch), Bank of East Asia, Citi, Hang Seng Bank, HSBC and Industrial & Commercial Bank of China (Asia) as a club deal.

The credit is split into a HK$2.45 billion term loan and a HK$500 million revolver with margins priced at 59bp over Hibor.

Proceeds are to fund the purchase of Langham Place, a commercial complex located in Hong Kong.

A HK$350 million three-year term loan for Tongda Group Holdings was sealed on June 6 via a consortium of six lead arrangers on a club basis û Bank of East Asia, Bank of Tokyo-Mitsubishi UFJ, DBS Bank, Hang Seng Bank, HSBC and KBC Bank.

The deal pays a spread of 110bp over Hibor and has an average life of two years. The funds are to refinance an existing HK$200 million facility signed in 2006.

TPV TechnologiesÆ $150 million three-year fundraising is in syndication via a consortium of eight mandated arrangers û ABN AMRO, Bank of America, BNP Paribas, CITIC Ka Wah Bank, ING Bank, Oversea-Chinese Banking Corporation, Rabobank and Standard Chartered Bank. All the lenders are also acting as bookrunners with the exception of Bank of America, CITIC Ka Wah Bank and Oversea-Chinese Banking Corp.

The deal pays a spread of 100bp over Libor and has an average life of 2.125 years. Due to liquidity issues, banks are able to commit either in HK dollars or US dollars.

Banks are welcome to join at three levels. Coordinating arrangers committing $15 million or more get an 83bp participation fee, while lead arrangers
and arrangers committing $10 million to $14 million and $5 million to $9 million receive 75bp and 68bp respectively.

A bank presentation was held in Hong Kong yesterday (June 12) and syndication is slated to close by June 23. Proceeds are for working capital purposes.
India

A $560 million seven-year dual-tranche credit for Ballarpur Industries was launched into senior syndication last week via mandated leads Citi, ING Bank, Rabobank, State Bank of India and WestLB. The former three banks are also acting as bookrunners.

The loan is spilt equally with a blended margin of 260bp over Libor.

Banks joining in as equal-status mandated arrangers with commitments of $75 million and above, or on a take-and-hold basis of $50 million, will earn an upfront fee of 140bp and an underwriting fee of 25bp.

Banks are to revert by the end of June. Proceeds are to refinance an existing $200 million LBO facility signed last year.

Bank of BarodaÆs $125 million three-year credit was launched into syndication on June 6 through BNP Paribas, Bank of America, DZ Bank and Sumitomo Mitsui Banking Corporation.

The margin of the financing is 105bp over Libor. Banks are welcome to come in at three levels. Mandated lead arrangers joining with $15 million or more get an upfront fee of 42bp, lead arrangers contributing between $10 million and $14 million earn 30bp and arrangers holding $5 million to $9 million take 16bp.

Roadshows will be held in Taipei and Singapore on June 17 and June 18 respectively. Banks have until July 9 to revert.

Canara BankÆs $100 million one-year facility was signed on June 4 via mandated lead arrangers and bookrunners BNP Paribas and DEPFA Bank.

Syndication saw a total of 10 banks joining in û Banco Popolare (London Branch), Bank of Tokyo-Mitsubishi UFJ, Chang Hwa Commercial Bank (Offshore Banking Branch), First Commercial Bank (Offshore Banking Branch), Hua Nan Commercial Bank (Offshore Banking Branch), Land Bank of Taiwan (Offshore Banking Branch), RZB Bank, Taiwan Business Bank (Offshore Banking Branch), Taiwan Cooperative Bank (Offshore Banking Branch) and UniCredito Italiano (Hong Kong Branch).

Idea CellularÆs $150 million seven-year B-loan has been launched into syndication via bookrunners Calyon, Rabobank and Standard Chartered Bank.

The deal is part of a $100 million A-loan taken up by International Finance Corporation on a bilateral basis.

Syndication is scheduled to close at the end of the month.

Syndication of Punjab National BankÆs $100 million three-year term loan was closed on Wednesday by Banc of America Securities Asia, DZ Bank, HSBC, Natixis and Sumitomo Mitsui Banking Corporation. Seven banks have joined the group at a lower level and the transaction is expected to be sealed by the end of this week.

Indonesia

A $465 million two-year debt package for Calipso Investment, an SPV of Bumi Resources, has closed syndication via sole bookrunner Credit Suisse.

Senior syndication saw ICICI Bank and WestLB joining in as equal status mandated arrangers with a handful of lenders participating in general syndication. Final allocations are not yet disclosed.

The deal was funded in early April via the mandated leads with $110 million solely committed by Credit Suisse on a bilateral basis.

The signing ceremony is scheduled to take place today. The funds are to support the acquisition of Australian mining company Herald Resources.

Malaysia

A $380 million seven-year facility for Titan Capital (L) and Titan Kimia Nusantara is closing today, with four commitments received so far. Standard Chartered Bank and WestLB are leading the transaction with RHB having joined the deal at the top level earlier on.

Singapore

MorganiteÆs S$2 billion five-year multi-tranche facility is being well received in syndication via mandated lead arrangers and bookrunners DBS Bank, Oversea-Chinese Banking Corporation, Royal Bank of Scotland, Standard Chartered Bank and United Overseas Bank.

The loan comprises a S$1.37 billion term loan, a S$500 million revolver and a S$130 million guarantee portion which is not being syndicated to the market. The margin is priced at 150bp over SOR for all three tranches.

So far, Bank of China, HSBC and Maybank have joined at the top-level with a handful of lenders processing their credit approvals. Syndication is expected to close by the end of June.

The funds are to support the acquisition of land and for the construction of a real estate property development, Farrer Court.

Savu InvestmentsÆ S$587.09 million dual-tranche three-year financing was inked on June 2 through Societe Generale, Standard Chartered Bank (sole bookrunner) and WestLB. Other banks participating in the transaction are arranger Bank of China and lead managers DZ Bank and First Commercial Bank.

The senior tranche pays a margin of 85bp over SOR, while the junior tranche pays 187bp. Proceeds are to fund the acquisition of Hitachi Tower in Singapore.
South Korea

A $63 million one-year credit for Daegu Bank has been sealed via seven mandated leads as a club deal.

The bullet loan pays a spread of 60bp over Libor.

Final allocations saw Landesbank Baden-Wurttemberg (Seoul Branch) committing $15 million, while DZ Bank (Hong Kong Branch) took $12 million. Calyon (Hong Kong Branch) and CITIC Ka Wah Bank came in with $10 million apiece while Mega International Commercial Bank (Offshore Banking Branch) held $6 million. Rounding off the syndicate were Shanghai Commercial & Savings Bank (Offshore Banking Branch) and Standard Chartered Bank (Hong Kong Branch) with holds of $5 million each.

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

Lotte ShoppingÆs $100 million three-year offshore floating rate note was sealed on June 6 via mandated arrangers BNP Paribas and DBS Bank.

Final allocations saw DBS Bank take $40 million, while BNP Paribas held $17 million. Coming in as arrangers were Chuo Mitsui Trust & Banking and Chinatrust Commercial Bank (Offshore Banking Branch), contributing $16 million and $11 million respectively. United Overseas Bank (Hong Kong Branch) provided $8 million as a co-arranger. Lead managers Chiba Bank (Hong Kong Branch) and Mega International Commercial Bank (Offshore Banking Branch) took $4 million apiece.

The funds are to refinance existing debt.

Taiwan

Advanced Semiconductor EngineeringÆs $200 million three-year fundraising was signed on May 29 via Bank of Taiwan, Calyon Corporate & Investment Bank, Chinatrust Commercial Bank, Citi, HSBC, Hua Nan Commercial Bank, Shanghai Commercial & Savings Bank, Standard Chartered Bank and Taishin International Bank.

The coordinating arrangers committed $21.5 million each, while participant Mega International Commercial Bank contributed $6.5 million.

The margin of the term loan is 70bp over Libor if the net income over sales is more than 5%, 80bp if it is between 0% and 5%, and 90bp if it is below 0%.

Proceeds are to finance the acquisition of all the issued and outstanding common shares of ASE Test held by third parties.

Listed company ChipMOS Technologies (Bermuda)'s $50 million three-year term loan was launched into general syndication on June 9 via original mandated lead arranger Standard Chartered Bank (Taiwan). Ta Chong Bank, Taiwan Business Bank and Taiwan Cooperative Bank have joined the deal as equal status arrangers and bookrunners.

The interest rate of the financing is 100bp over Libor and there are three participation levels. Lead arrangers joining with $10 million or more gain a management fee of 20bp, co-arrangers lending $5 million to $9 million get 15bp and managers providing between $3 million and $4 million take 10bp.

The deal features an average life of 2.6 years and a two-year extension option. Lenders also enjoy a guarantee from ChipMOS Technologies. Proceeds are to partially refinance two convertible bonds issued by the borrower.

Inventec CorporationÆs $200 million three-year revolver has been launched into general syndication via Hua Nan Commercial Bank.

The deal pays a spread of 52bp over Libor. Banks committing $20 million or above get an upfront fee of 12bp. Those committing $15 million to $19 million get 7.5bp, and banks providing between $10 million and $14 million get a fee of 5bp.

The facility is expected to be closed and signed by the end of June. Proceeds are for working capital purposes.

Jong Shyn ShipbuildingÆs NT$630 million seven-year term facility was signed on June 6 via mandated lead arrangers and bookrunners Mega International Commercial Bank and Taiwan Cooperative Bank.

The credit is split into a NT$360 million portion and a NT$270 million loan. The margin of the latter tranche is 120bp over Mega BankÆs one-year time deposit floating rate, while the first tranche pays the same margin but will be lowered to 80bp when the securities are ready. Both tranches have a commitment fee of 20bp.

The mandated arrangers each committed NT$200 million, while participants Bank of Taiwan, Land Bank of Taiwan, Taiwan Business Bank and Taiwan Shin Kong Commercial Bank lent NT$50 million apiece. Bank of Kaohsiung rounded up the group with NT$30 million.

Proceeds are to support the building of a new 40,000 tonne shipyard.

A NT$1 billion five-year dual-tranche debt package for Visual Photonics Epitaxy is signing today through mandated arrangers and bookrunners China Development Industrial Bank, Hua Nan Commercial Bank and Mega International Commercial Bank. Bank of Taiwan, First Commercial Bank and Shanghai Commercial & Savings Bank have joined the deal at a lower level.

The fundraising is split into a NT$700 million term loan to support the purchase of machinery and a NT$300 million revolving credit to fund working capital. The facility features a margin of 80bp over the secondary CP rate and has a commitment fee of 10bp if there is no usage in the term loan, or if the usage is under 70% for the revolver.

A $335 million three-year transferable revolver for Walsin Lihwa Holdings was upsized from $250 million and sealed on June 9 through 13 mandated lead arrangers and bookrunners.

The fundraising, which is guaranteed by parent company Walsin Lihwa Corporation and has a two-year extension option, pays a spread of 55bp over Libor. There is a commitment fee of 10bp to 15bp based on the utilisation level.

Mandated lead arrangers Bank of Tokyo-Mitsubishi UFJ, Cathay United Bank, Chinatrust Commercial Bank, E-Sun Commercial Bank, HSBC, Hua Nan Commercial Bank, Land Bank of Taiwan, Mega International Commercial Bank, Shanghai Commercial & Savings Bank, Standard Chartered Bank, Taipei Fubon Commercial Bank, Taiwan Business Bank and Taiwan Cooperative Bank committed $25 million apiece, while co-arranger First Commercial Bank lent $10 million for an upfront fee of 15bp.

Proceeds are for working capital purposes.

Winbond Electronics CorporationÆs NT$7.7 billion five-year term loan was upsized from NT$5 billion and signed last Wednesday via China Development Industrial Bank, Chinatrust Commercial Bank, EnTie Commercial Bank, First Commercial Bank, Ta Chong Bank, Taipei Fubon Commercial Bank and Taishin International Bank.

The mandated lead arrangers, except for First Commercial Bank and Taipei Fubon Commercial Bank who committed NT$800 million apiece, provided NT$1 billion each in the transaction. Co-arranger Yuanta Commercial Bank lent NT$500 million for an upfront fee of 25bp, manager Industrial Bank of Taiwan held NT$300 million for 20bp and participants Far East International Bank and Shanghai Commercial & Savings Bank contributed NT$200 million and NT$100 million respectively for 15bp.

Secured by a 12-inch wafer factory and related machinery, the debt package pays a spread of 100bp over the 90-day primary CP rate and has a commitment fee of 10bp.

The repayment schedule will be six equal semi-annual installments after a 2.5-year grace period. Proceeds are to fund the borrowerÆs capital expenditure.
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