Loan Week, June 8-15

A roundup of the latest syndicated loan market news.

BIS IndustriesÆ A$905 million multi tranche facility has been signed via mandated arrangers ANZ Investment Bank and Credit Suisse. A total of 24 undisclosed banks joined in syndication.

The six-year financing comprises a A$565 million bullet loan, a A$275 million term portion and a A$65 million revolver.

Proceeds are to refinance an existing A$1.69 billion Kohlberg Kravis Roberts & Co (KKR)-led acquisition of BramblesÆ Cleanaway Australia and New Zealand. KKR sold the company to Transpacific Industries in May 2007.

ING Office FundÆs A$1.425 billion dual-tranche financing was signed yesterday (June 14) via mandated arrangers Citi, ING Bank and Westpac. Citi and Westpac led the books.

The facility is divided into a A$570 million three year revolving credit, and a A$855 million five year revolver with pricing undisclosed.

Syndication saw twelve other banks joining as participants. ANZ Investment Bank, BNP Paribas, Commonwealth Bank of Australia, National Australia Bank, Sumitomo Mitsui Banking Corp and United Overseas Bank committed A$100 million apiece while Bank of America, HSBC, JP Morgan, Mizuho Corporate Bank, Royal Bank of Scotland and Toronto Dominion contributed A$75 million each.

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


Gracious SkyÆs HK$1.5 billion seven year bullet facility was signed on June 13 as a club deal via a consortium of 10 banks. China Merchants Group is acting as guarantor in the deal.

The deal pays a spread of 32bp over Hibor.

Mandated lead arrangers were Agricultural Bank of China (Hong Kong Branch), Bank of China (Hong Kong Branch), BayernLB (Hong Kong Branch), Calyon, Commonwealth Bank of Australia, DBS Bank, ING Bank, KBC Bank, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp.

Final allocations saw each bank contributing HK$150 million apiece. Proceeds are to refinance existing facilities.

Hong Kong

A HK$2.1 billion five year term loan for Beijing Enterprises Holdings will be inked today (June 15) via a syndicate of 14 banks.

Mandated arrangers Bank of China, BNP Paribas, Calyon, Rabobank, DBS Bank, Mizuho Corporate Bank and arranger Agricultural Bank of China lent HK$200 million apiece.

Arrangers China Construction Bank provided HK$138 million while Export Development Bank of Canada took HK$116 million. DZ Bank and Wing Lung Bank held HK$111 million each while Bank of Tokyo-Mitsubishi UFJ and Bank of China (Singapore) contributed HK$83.5 million apiece. Lead manager Tai Fung Bank ended up with HK$57 million.

The facility features a spread of 28.5bp over Hibor. Proceeds are to support general corporate purposes.

A HK$1.2 billion dual-tranche fundraiser for Peace Mark (Holdings) was closed on June 12 after receiving an overwhelming response from the market. The deal was upsized from HK$900 million

Joining original mandated arrangers and bookrunners ABN AMRO and ING Bank as equal status arrangers were Agricultural Bank of China (Hong Kong Branch), Banco Bilbao Vizcaya Argentaria (Hong Kong Branch), Bank of Tokyo-Mitsubishi UFJ, Commonwealth Bank of Australia, Fortis Bank (Guangzhou Branch), Nanyang Commercial Bank and United Overseas Bank.

The financing is split into a HK$960 million term loan and a HK$240 million revolver, both with tenors of four years and an average life of 3.2 years.

Final allocations saw the mandated arrangers providing HK$70 million apiece with the exception of Agricultural Bank of China (Hong Kong Branch) and Banco Bilbao Vizcaya Argentaria (Hong Kong Branch) which held HK$60 million each.

Coming in as lead arrangers, all contributing HK$45 million apiece were Arab Bank (Singapore Branch), Bank of China (Macau Branch), Bank of Nova Scotia, BNP Paribas, First Commercial Bank, Nordea Bank and Taiwan Business Bank.

Senior managers Bank of Taiwan, Fubon Bank (Hong Kong Branch), Maybank, Public Bank and Taiwan Cooperative Bank (Offshore Banking) committed HK$30 million each. DBS Bank (Hong Kong Branch), Mizuho Bank, Shanghai Commercial Bank, Shanghai Commercial & Savings Bank and Wing Hang Bank held HK$25 million apiece.

Proceeds are to partially refinance an existing HK$630 million facility signed in April 2005 and for general corporate purposes.

Sun Hung Kai PropertiesÆ HK$15.25 billion six year revolver has been completed with a consortium of 26 banks participating. The facility was oversubscribed and has been upsized from HK$14.5 billion.

Mandated arrangers Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Calyon, HSBC, Industrial & Commercial Bank of China (Asia), Mizuho Corporate Bank, Rabobank, Standard Chartered and Sumitomo Mitsui Banking Corp each committed HK$1 billion.

Co-arrangers Bank of China (Hong Kong) provided HK$900 million and Fortis Bank contributed HK$800 million. Banco Bilbao Vizcaya Argentaria, Bangkok Bank, Bank of Communications, Bank of East Asia and Hang Seng Bank took HK$500 million apiece. CB International Finance held HK$400 million while Agricultural Bank of China, Citi and Wing Lung Bank lent HK$300 million each. Bank of China (Singapore) and Shanghai Commercial Bank pledged HK$200 million each. Hua Nan Commercial Bank, Maybank and Tai Fung Bank held HK$100 million apiece while lead manager Scotiabank ended up with HK$50 million.

The funds are to support general corporate needs.

Bank of India, Barclays, Chinatrust Commercial Bank, Deutsche Bank, State Bank of India and UTI Bank have launched Bhushan Steel & StripsÆ $100 million six year dual currency fundraising into general syndication.

The yen equivalent loan features a spread of 13.33bp over Libor and an average life of 5.5 years.

Banks have been invited on three tiers. Arrangers committing $10 million or above receive an upfront fee of 80bp while co-arrangers lending between $5 and $9 million gain 70bp and lead managers holding between $3 million and $4 million get 60bp.

Banks have until June 22 to respond.

Commitments are still coming in for West Coast Paper MillsÆs $106 million five year credit. Mandated arrangers ICICI and State Bank of India have so far received commitments from Finnish Fund for Industrial Cooperation and Indian Bank which have joined with holds of $10 million each and Banco Espirito Santo which has committed $5 million. Three banks are still awaiting approval.

The deadline for banks to revert is by June 20.


Charoen PokphandÆs $125 million multi-tranche facility was closed via mandated leads Bank Central Asia, Citi, DBS Bank and Rabobank. Citi, DBS Bank and Rabobank were the bookrunners.

The loan was upsized from $100 million and it is understood that seven banks have committed although final allocations has yet to be disclosed.

The loan is split into a $65 million five year amortising term loan æAÆ with an average life of 3.1 years, a $35 million three year bullet term loan æBÆ and a $25 million three year revolver.

The deal features the option to lend in US dollar, Yen or Indonesia rupiah. Pricing is at 290bp over dollar Libor or yen Libor. For rupiah, the margin is at 300bp over the Indonesia SBI benchmark.

Proceeds of term loan æAÆ are to refinance existing debt with the outstanding amount for general corporate purposes. Signing is slated for the third week in June.

Mitra AdiperkasaÆs $90m equivalent dual tranche financing has been signed. The mandated arrangers comprise of ABN AMRO, Bank Danamon Indonesia, Bank Negara Indonesia, Mizuho Corporate Bank and Standard Chartered.

The three year fundraiser is split into a Ñ6.954 billion term portion and a $33 million revolver. Both feature a margin of 250bp over Libor.

On the yen tranche, mandated arranger Mizuho Corporate Bank took Ñ1.83 billion while ABN AMRO and Standard Chartered lent Ñ1.22 billion apiece.

Arranger Bank of Tokyo-Mitsubishi UFJ provided Ñ976 million while lead manager Sumitomo Mitsui Banking Corp held Ñ488 million. Bank of Baroda and Krung Thai Bank pledged Ñ366 million each while Bank of Taiwan and Indian Bank ended up with Ñ244 million apiece.

The revolving credit portion saw mandated arrangers Bank Negara Indonesia committing $15 million and Bank Danamon Indonesia contributing $10 million. Lead manager Bank International Indonesia provided $5 million and Bank of China took $3 million.

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

A $25 million three year loan has been inked for Surya Artha Nusantara Finance via sole bookrunner Standard Chartered which took $10 million.

Mandated arrangers Bank Mizuho Indonesia, Bank Niaga and Bank Resona Perdania ended up with $5 million apiece.

The facility features a margin of 175bp over Libor.

Syndication is still ongoing for Discovery DrillingÆs $130 million six year financing led by ICICI, Intesa Sanpaolo, KBC and United Overseas Bank. ICICI is the sole bookrunner.

The facility has so far received commitments from First Commercial Bank while four other banks are still waiting for approval to join.

Banks have been invited on three levels. Arrangers lending $15 million or above receive a management fee of 100bp for an all-in of 142bp while co-arrangers committing between $10 and $15 million get 80bp for an all-in of 138bp. Lead managers taking between $5 to $10 million gain 60bp for an all-in of 133bp.

The loan carries a margin of 200bp over Libor. Proceeds are to support a rig being constructed by Keppel under a vessel construction contract between Discovery Drilling and Keppel Fels. The deadline for banks to revert is by June 29.

Sole arranger ICICI has launched Mercator Lines (Singapore)Æs $175 million 10 year ship financing into general syndication.

The loan pays a margin of 95bp over Libor and has an average life of 6 years.

The deal was funded on June 5 and proceeds are to support the purchase of three bulk carriers. Banks are expected to revert by the end of June.

Seaview (Sentosa) has obtained a S$351 million three year club loan via DBS Bank, HSBC, Maybank, Oversea-Chinese Banking Corp and Standard Chartered with each providing $70.2 million.

The loan carries a margin of 71bp over Libor. Ho Bee Investment and IOI Land Singapore are the guarantors. The funds are to finance the construction of a condominium development on Sentosa Island.


Prodisc TechnologyÆs NT$2.004 billion two year revolver was signed via mandated lead arrangers and bookrunners Bank of Taiwan, Mega International Commercial Bank and Taishin International Bank.

The facility features a spread of 100bp over the 180-day primary CP rate with commitment fee at 25bp flat.

Syndication saw bookrunners Taishin International Bank, Bank of Taiwan and Mega International Commercial Bank committing NT$480 million, NT$270 million and NT$99 million respectively. Coming in as managers were Taipei Fubon Commercial Bank providing NT$380 million with Bank of Pan Shin and Far Eastern International Bank contributing NT$160 million each. Ta Chong Bank and Taiwan Cooperative Bank held NT$120 million apiece with Chinatrust Commercial Bank taking NT$70 million. Hua Nan Commercial Bank and Taiwan Business Bank committed NT$60 million each and Shanghai Commercial & Savings Bank gave NT$53 million. Land Bank of Taiwan and First Commercial Bank took NT$30 million and NT$15 million correspondingly.

Proceeds are to refinance an existing facility signed in May 2005 and for working capital purposes.

Walton Advanced EngineeringÆs NT$4 billion five year dual tranche facility has been completed through mandated arrangers Chinatrust Commercial Bank, Mega International Bank and Industrial Bank of Taiwan.

The deal is split equally into two NT$2 billion tranches and pays a margin of 45bp over the primary CP rate.

Chinatrust Commercial Bank, Mega International Bank and Industrial Bank of China provided NT$430 million each while co-arranger China Development Industrial Bank lent NT$360 million.

Managers Bank of Taiwan, Cathay United Bank, Hua Nan Commercial Bank, Taiwan Business Bank and Taiwan Shin Kong Commercial Bank committed NT$290 million apiece. Lenders Bank of Kaohsiung, E Sun Commercial Bank, Export-Import Bank of Taiwan and Land Bank of Taiwan lent NT$200 million each and Shanghai Commercial & Savings Bank ended up with NT$100 million.


PTT Chemical is tapping the market for a $300 million offshore loan, according to one banker and has sent out RFPs.

¬ Haymarket Media Limited. All rights reserved.
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