Loan week, March 28-April 3

A roundup of the latest syndicated loan market news.

FKP and Australian Retirement HomesÆs A$375 million three-year bullet loan has been inked via sole bookrunner ANZ, which held A$75 million.

Lenders Bank of New Zealand and Suncorp Metway each provided A$150 million.

Proceeds are to refinance an existing debt facility.

A A$300 million three-year credit for Valad Commercial Management has been completed via sole lead arranger Commonwealth Bank of Australia.

The three-year loan comprises a A$211 million facility, a A$74.5 million debt and a A$14.5 million portion.

Commonwealth Bank of Australia and lender Bank of New Zealand committed equal portions to the deal.


ASE Assembly & Test (Shanghai)Æs $147 million five-year term loan has been signed via mandated lead arrangers and bookrunners DBS Bank and HSBC. The facility was downsized from $190 million.

The deal features a margin of 90bp over Libor and an average life of four years. Advanced Semiconductor Engineering (Taipei) is the parent company.

Final allocations saw the bookrunners and five other banks that joined in as equal-status arrangers contribute $20 million apiece. The banks were Agricultural Bank of China, Bangkok Bank, Bank of Tokyo-Mitsubishi UFJ, Sumitomo-Mitsui Banking Corporation and Wing Hang Bank.

Coming in as a senior manager was Bank of Shanghai (Pudong Branch), which lent $7 million.

The funds are to partly refinance existing debt and for general corporate purposes.

Huawei-3Com HoldingsÆ $800 million dual tranche LBO financing led by ABN AMRO, Bank of China, Citi, HSBC and UBS has hit a snag as Bain Capital terminated an agreement with 3Com amidst concerns raised by US regulatory bodies on national security.

3ComÆs subsidiary, TippingPoint Technologies, is at the heart of the concern as it manufactures anti-hacking software and has contracts with the US department of defence. Bain Capital and Huawei are leading the buyout with 83.5% and 16.5% respectively.

A banker close to the deal said the transaction has been paused and might fall through, despite having been previously funded by the leads.

Sub-underwriting saw Aozora Bank, China Development Bank, Rabobank, Sumitomo Mitsui Banking Corporation and WestLB join at the top as equal-status arrangers, while Bank of Nova Scotia and Chinatrust Commercial & Savings Bank came in as lead arrangers.

The five-year, non-recourse loan is split into a $750 million credit and a $50 million revolver. The deal offers spreads of 306.25bp and 300bp over Libor respectively.

A separate $400 million financing is being raised in the United States.

Bank of China inked a Rmb4.03 billion 18-year dual tranche financing for Si Chuan China Power Investment Fuxi Power Co on March 19.

The loan is split into a Rmb3.55 billion 18-year credit and a Rmb480 million one-year portion.

Final allocations saw Bank of China provide Rmb1.81 billion, while lender Industrial & Commercial Bank of China contributed Rmb1.33 billion. China Construction Bank ended up with Rmb890 million.

Hong Kong

CRE BeverageÆs HK$1.8 billion five-year fundraising received an enthusiastic market response and was inked on April 1 via mandated arrangers Agricultural Bank of China, Bank of China (Hong Kong), Bank of Tokyo-Mitsubishi UFJ and Mizuho Corporate Bank. The facility was upsized from HK$1.425 million.

CR Snow is acting as the guarantor. The funds are for general corporate purposes and for the refinancing of existing debt. The full syndicate was undisclosed at the time of going to press.

Syndication of Pacific Andes Treasury ManagementÆs $160 million four-year dual tranche financing has been extended for another few weeks to accommodate lenders. The mandated leads and bookrunners are Rabobank and Standard Chartered Bank.

The deal comprises a $100 million term loan and a $60 million revolver. The margin is priced at 125bp over Libor and features an average life of three years. The parent company, Pacific Andes International Holdings, is acting as the guarantor.

Citic Ka Wah Bank has so far joined in as an equal-status arranger. Several other commitments have been received, but are still undisclosed.

The syndication is scheduled to close in mid-April. Proceeds are to refinance an existing debt signed in July 2006 and for working capital purposes.


First Commercial Bank has been awarded a working mandate to arrange a NT$4.75 billion five-year fundraising for Gintech Energy Corporation.

The formal mandate is expected to be confirmed next week with syndication to follow soon after.

Leadtek GlobalÆs $700 million three-year fundraising is being enthusiastically received via lead arrangers ABN AMRO, Bank of Taiwan, Bank of Tokyo-Mitsubishi UFJ, Cathay United Bank, Chinatrust Commercial Bank, DBS Bank, HSBC, ING Bank, Sumitomo-Mitsui Banking Corporation and Taiwan Cooperative Bank. The loan amount was increased from $450 million as the MLA group was expanded.

The deal features an extension option of two years and offers a spread of 62.5bp over Libor. Chi Mei Optoelectronics is acting as the guarantor.

So far syndication has seen Standard Chartered Bank joining in as an equal-status arranger, while one commitment has been received in general syndication. The facility amount may be increased yet further to $900 million due to the good response in the market.

Syndication is expected to close towards the end of April. Proceeds are for working capital purposes.

Bank of China, Chinatrust Commercial Bank and Citi launched Pou Chen CorporationÆs NT$5 billion five-year credit into senior and general syndication simultaneously on March 28.

The margin is priced at 43.5bp over the secondary CP rate.

Syndication is slated to close on April 25. The funds are to refinance existing debt and for working capital requirements.


Lead bank SBI Capital Markets has completed a $1.11 billion multi-tranche project financing for Adani Power.

The credit comprises a $586.75 million 14-year and three-month loan, a $500 million 12-year debt and a $26.75 million 14-year and 3-month portion.

Final allocations saw the lead committing $206 million, while participant Standard Chartered Bank took $500 million. India Infrastructure Finance held $107.5 million while Bank of India took $62.5 million. Indian Overseas Bank contributed $47.5 million while Punjab National Bank lent $41.25 million. State Bank of Travancore took $25 million, while Axis Bank, Corporation Bank, State Bank of Patiala and State Bank of Saurashtra each provided $21.25 million. Mercantile Bank held $20 million and State Bank of Mysore came in with $18.75 million.

Proceeds are to finance the development of Phase 3 of the Mundra thermal power plant in Kutch district, Gujarat, India.

A $100 million three-year loan for Bank of India was launched into senior and general syndication simultaneously on March 30. Bank of Tokyo-Mitsubishi UFJ, DZ Bank, HSBC, Intesa Sanpaolo and Sumitomo Mitsui Banking Corporation are leading the transaction.

The deal features a spread of 90bp over Libor. Banks have been invited on three tiers. Mandated lead arrangers providing $15 million and above receive 60bp in management fees for an all-in of 110bp while arrangers lending between $10 million and $15 million gain 45bp for an all-in of 105bp. Co-arrangers taking between $5 million and $10 million get 30bp for an all-in of 100bp.

Bank presentations are to be held in Singapore on April 9 and in Taiwan on April 10. The deadline for banks to revert is in the last week of April.

A $130 million one-year financing for Industrial Development Bank of India has received three commitments so far in syndication via lead arrangers BNP Paribas, DEPFA Bank and DZ Bank. BNP Paribas is the sole bookrunner.

Syndication is expected to be closed towards the middle of the month.

A $950 million dual tranche financing for Tata Power has been signed on a club basis via a syndicate of nine banks. Barclays Capital is the original mandated arranger.

The deal comprises a $350 million seven-year amortising loan and a $600 million six-year non-recourse portion.

Joining the non-recourse portion at the top were Axis Bank, Bank of India, ICICI Bank, Bank of Baroda, Export-Import Bank of India, State Bank of India, Sumitomo Mitsui Banking Corporation and Standard Bank while Bank of Tokyo-Mitsubishi UFJ and Fortis came in as participants.

The recourse tranche saw the same banks at the top along with undisclosed institutional investors. Export Development Bank of Canada joined as a lender.

The funds are to refinance a $950 million bridge facility to support the borrowerÆs acquisition of a 30% state in Kaltim Prima Coal and Arutmin Indonesia.

The $3 billion 12-month bridge facility for TML Holdings, an SPV of Tata Motors, was launched into the market last week via a syndicate of eight mandated arrangers û Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Citi, ING Bank, JPMorgan, Mizuho Corporate Bank, Standard Chartered Bank and State Bank of India.

Banks have been invited on two levels in senior syndication and four in general. At the mandated arranger level, banks underwriting $175 million or above receive 5bp in underwriting fees and 45bp in upfront fees for an all-in of 160bp over Libor. Mandated arrangers coming in with take-and-hold commitments of $150 million gain 45bp for an all-in of 155bp over Libor.

Lead arrangers providing $100 million or above get 40bp for an all-in of 150bp while arrangers holding between $75 million and $99 million receive 35bp for an all-in of 145bp. Lead managers committing between $50 million and $74 million gain 30bp while managers lending between $25 million and $49 million get 25bp for all-ins of 140bp and 135bp respectively.

The margin is 85bp for the first six months, 120bp from the sixth to the ninth month and 150bp thereafter. The blended margin is 110bp over Libor.

Banks have until mid-April to revert for senior syndication and until the end of April for general syndication.

Proceeds are to finance the acquisition of Jaguar and Land Rover from Ford.


A M$240 million five-year fundraising for JBB Hotels was inked on March 28 via sole mandated lead and bookrunner DBS Bank with a hold of M$50 million.

Coming in as lead arrangers were Public Bank, which committed M$140 million, and Oversea-Chinese Banking Corporation (Labuan Branch), which provided M$50 million.


A S$2 billion five-year term loan for Farrer Court has been mandated to DBS Bank, Oversea-Chinese Banking Corporation, Royal Bank of Scotland, Standard Charted Bank and United Overseas Bank.

The lead arrangers are currently finalising the structure of the deal and are slated to launch it in mid-April.

Proceeds are to support the acquisition of land and the construction of a new property development.

Another property-linked transaction, MGP BerthÆs S$1.94 billion 46-month dual tranche financing, is still ongoing in syndication and has been extended for another two weeks. The bookrunners are DBS Bank, Hypo Real Estate Capital, Oversea-Chinese Banking Corporation and United Overseas Bank.

The facility features an attractive margin of 210bp over SOR and consists of a S$1.55 billion senior portion and a S$388 million junior tranche which will not be syndicated and held only by the bookrunners.

So far, around 20 banks are said to be looking into the deal so syndication has been left open.

Proceeds are to partially refinance an existing S$1.42 billion bridge loan and to fund construction costs.

Syndication of Resorts World at SentosaÆs (RWS) S$4.19 billion multi-tranche debt package is being well received in senior syndication with a total of eight commitments so far. The facility is being led by DBS Bank, HSBC, Oversea-Chinese Banking Corporation, Sumitomo Mitsui Banking Corporation and Royal Bank of Scotland.

The seven-and-a-half-year credit comprises a S$3.5 billion amortising loan, a S$500 million revolver and a S$193 million bank guarantee. DBS Bank and Oversea-Chinese Banking Corporation jointly provided the bank guarantee. The deal pays a spread of 175bp over Libor.

General syndication is expected be launched in the coming weeks. Proceeds are for the construction of an integrated resort located on Sentosa Island, Singapore.

A S$2.25 billion one-year bridge facility for SinoSing Power, an SPV of Tuas Power, is looking to be launched into syndication in about a week's time. The mandated lead arrangers are BNP Paribas, Calyon, DBS Bank, Fortis, Oversea-Chinese Banking Corporation and Sumitomo-Mitsui Banking Corporation.

The financing is split into S$2.1 billion and S$150 million term loan portions.

Proceeds are to support Huaneng PowerÆs acquisition of Tuas Power from Temasek Holdings, an investment arm of the Singapore government.

¬ Haymarket Media Limited. All rights reserved.

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