Loan Week, March 3-9

A roundup of the latest syndicated loan market news.

Babcock & Brown InternationalÆs A$2.35 billion three year revolving credit has been completed via mandated arranger BOS International. The facility was upsized from A$1.35 billion.

Participants are ANZ Bank, Bank of America, Bayerische Hypo-und Vereinsbank, BayernLB, BNP Paribas, Calyon, Citigroup, Commonwealth Bank of Australia, DBS Bank, Hypo Public Finance Bank, HSH Nordbank. Suncorp Metway, KfW, National Australia Bank, Oversea-Chinese Banking Corp, Societe Generale, United Overseas Bank, Westpac and WestLB.

Seven Media Group has successfully raised Ç1.53 billion from the market via a multi-tranche facility. The loan comprises Ç1.53 billion and Ç150 million portions with a spread of 237.5bp over BBSY and a Ç120 million six year financing that offers a margin of 212.5bp.

Mandated arrangers Citibank (Australia), Goldman Sachs JBWere, Mizuho Corporate Bank and Morgan Stanley Dean Witter Australia Finance took Ç110.3 million apiece while co-arrangers Aozora Bank, Bayerische Hypo-und Vereinsbank (Hong Kong), BNP Paribas, BOS International (Australia), Calyon (Australia), GE Capital Finance, ING Bank (Hong Kong), Royal Bank of Scotland and WestLB (Sydney) provided Ç110.3 million each. Lead manager Westpac Institutional joined with Ç36 million and Commonwealth Bank of Australia and Industrial & Commercial Bank of China ended up with Ç30 million each.

The funds will be used to support the A$735 million Kohlberg Kravis & Roberts-led leveraged buyout of Seven Media Group. Kohlberg Kravis & Roberts and Seven Network are the sponsors.


Nanjing TankerÆs $108 million 12 year financing has been launched into general syndication via mandated arrangers Societe Generale and Bank of China.

The margin is 49bp over Libor. Banks committing $15 million or above will get the arranger title and receive a fee of 22bp for an all-in of 51.7bp over Libor.

Proceeds are to fund the purchase of three oil tankers. Banks are scheduled to revert by March 16.

Hong Kong

Gold Peak IndustriesÆ HK$300 million three year amortising loan has been launched into general syndication via mandated arrangers Bank of China and China Construction Bank.

Banks have been invited on three levels. Arrangers contributing $40 million or above receive a front-end fee of 65bp for an all-in of 89 over Libor. Senior managers committing HK$30 million to HK$39 million get 60bp with an all-in of 87bp while managers providing HK$20 million to HK$29 million receive 60bp for an all-in of 85bp. Banks are to respond by March 23.

Proceeds are to refinance an existing HK$450 million facility that was signed in February 2004.

Allocations have been finalised for IFC Development Corporate FinanceÆs HK$17.35 billion five year financing. The deal was upsized from HK$14.8 billion due to an overwhelming response from the market. A total of 33 banks are participating in the facility.

The fundraising pays a margin of 37bp over Hibor. Co-arrangers providing HK$200 million or above get 25bp, senior lead managers committing HK$100 million to HK$190 million earn 22.5bp and lead managers taking HK$50 million to HK$90 million receive 20bp.

Mandated arrangers Bank of China (Hong Kong), Bank of East Asia, Bank of Tokyo-Mitsubishi UFJ, Calyon, Fortis Bank (Hong Kong), HSBC, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp committed HK$1 billion apiece, BNP Paribas (Hong Kong), Citigroup, DBS Bank and Standard Chartered Bank (Hong Kong) contributed HK$80 million each and ABN Amro, Bank of Communication (Hong Kong), BayernLB (Hong Kong), CCB International Finance, Cooperatieve Centrale Raiffeisen-Boerenleen Bank and Industrial & Commercial Bank of China (Asia) took HK$50 million apiece. Co-arrangers Shanghai Commercial Bank joined with a ticket of HK$50 million, Agricultural Bank of China (Hong Kong) pledged HK$40 million, Wing Lung Bank provided HK$30 million and Bangkok Bank (Hong Kong), BBVA (Hong Kong), KBC Bank (Hong Kong) and Scotiabank ended up with HK$20 million each.

Senior lead managers Bank of China (Tokyo) chipped in HK$190 million and Nanyang Commercial bank, Public Bank (Hong Kong) and Tai Fung Bank held HK$100 million apiece. Lead managers Mega International Commercial Bank (Hong Kong) lent HK$60 million and Bank of China (Macau) and Chong Hing Bank joined with commitments of HK$50 million apiece.

Proceeds will be used for general corporate purposes and signing is expected to be held on March 12.

Sanda Kan HoldingsÆ $92 million facility has been completed. Mandated arrangers DBS Bank, Standard Chartered Bank and Sumitomo Mitsui Banking Corp took $24 million apiece while arrangers Bank of Tokyo-Mitsubishi UFJ and Industrial & Commercial Bank of China joined in syndication with tickets of $15 million and $5 million respectively.

The deal is split into a $77 million term loan and a $15 million revolver with a margin of 235bp over Libor and features an average life of 4.43 years. Proceeds are for general corporate and refinancing purposes.

Bank of China has been mandated to arrange Western Harbour TunnelÆs HK$3.5 billion financing that will be used to refinance an existing HK$3.5 billion dual tranche loan completed in July 2002.


Andhra BankÆs $75 million financing has been completed via a syndicate of 11 banks. Mandated arrangers Banc of America Securities Asia, DBS Bank, Natexis Banques Populaires, BayernLB, DZ Bank and RZB Bank committed $5 million apiece. Co-arrangers Zentralbank pledged $8 million and Export-Import Bank of the Republic of China, Lloyds TSB and ZKB lent $5 million apiece. Lender Banco Nacional Ultramarino ended up with $2 million.

Proceeds are to refinance an existing loan signed in February 2006.

Barclays Capital and BNP Paribas have won the mandate for Finolex CablesÆ $30 million five year fundraising. Proceeds are for working capital purposes and the deal will be launched into general syndication shortly.

Jaiprakash AssociateÆs $250 million loan has been increased from $200 million due to a strong response from the market and signing is scheduled to take place on March 9.

The mandated arrangers are Barclays Capital, Bank of Baroda, Bank of India, Chinatrust Commercial Bank, National Bank of Dubai, Commonwealth Bank of Australia, State Bank of India and UTI Bank. Arrangers Arab Investment Corp, Bank of Taiwan, Chang Hwa Commercial Bank, First Commercial Bank, Hua Nan Commercial, Indian Bank and State Bank of India (Canada and Mauritius branches) joined in syndication.

Proceeds will be used for general corporate purposes.

Mandated arrangers Arab Bank, BNP Paribas, DBS bank, ICICI Bank, Intesa Sanpaolo, Mashreqbank, Standard Chartered Bank and Sumitomo Mitsui Banking Corp will launch Reliance Utilities and Reliance Ports & TerminalsÆ $925 million project financing into general syndication shortly. The facility is split into $500 million and $425 million 10 year term loans with an average life of 6.75 years.

The $150 million seven year term loan for Tata Sons has completed syndication. Mandated arrangers Banc of America Securities Asia, Barclays Capital, Standard Chartered Bank, Bank of Nova Scotia, Rabobank Nederland and Bank of Tokyo-Mitsubishi UFJ were joined by arrangers Cathay United Bank, Export-Import Bank of the Republic of China, Hua Nan Commercial Bank, Mega International Commercial Bank, Royal Bank of Scotland and Sumitomo Mitsui Banking Corp.

Proceeds are for general corporate purposes and the signing ceremony is scheduled to be held on March 9.


Bank TuranAlemÆs $500 million yen-equivalent facility has been launched into general syndication via mandated arrangers ING Bank, Standard Chartered and Sumitomo Banking Corp. The facility carries a tenor of three years and pays a margin of 55bp over Libor.

Proceeds are for general corporate purposes.


Mandated arrangers Barclays Capital, Bank of Tokyo-Mitsubishi UFJ, Fortis Bank, Mizuho Corporate Bank, Oversea-Chinese Banking Corp, Sumitomo Mitsui Banking Corp and United Overseas Bank have launched Trans Thai MalaysiaÆs $140 million facility into general syndication. The borrower last tapped the market in June 2004 via a $524 million 16 tranche term loan that was led by Barclays Capital.


CWTÆs S$100 million dual tranche loan has completed syndication via mandated arrangers DBS Bank, Maybank and Oversea-Chinese Banking Corp. A total of 11 banks are participating in the deal.

The loan is split into a S$50 million tranche and a S$50 million revolving credit facility.

Banks were invited to join on three tiers. Lead arrangers lending S$15 million and above receive a participation fee of 23bp for an all-in of 62.4bp, co-arrangers committing S$10 million to S$25 million get 18bp for an all-in of 60.6bp and lead managers lending S$5 million to S$10 million earn 15bp for an all-in of 59.5bp.

Mandated arrangers ABN Amro, Calyon, Maybank and Sumitomo Mitsui Banking Corp will launch NatSteel AsiaÆs S$150 million seven year financing into syndication in two weeksÆ time. The deal features an average life of six years.

The borrower last visited the market in May 2005 via a S$150 million facility arranged by HSBC. Maybank, Bank of Tokyo-Mitsubishi UFJ, Calyon and DBS Bank were lenders.

Syndication of Yakki InternationalÆs $40 million six year, two month financing has been closed via sole mandated arranger Oversea-Chinese Banking Corp. Participating banks are Maybank, United Overseas Bank and VTB Bank Europe.

Proceeds are to acquire an offshore jack-up rig. Signing is expected take place early next week.

Sri Lanka

Bank of CeylonÆs $100 million three year fundraising has been launched into general syndication via sole mandated arranger HSBC. The deal features a margin of 50bp over Libor and an average life of 1.6 years.

Banks have been invited to join on three tiers. Arrangers contributing $10 million or above receive 35bp flat for an all-in of 85bp. Co-arrangers committing $5 million to $10 million get 33bp and lead managers lending $2 million to $5 million receive 31bp for all-ins of 83bp and 81bp respectively.

Commercial Bank of Qatar, DBS Bank, Mashreq Bank, National Bank of Kuwait and RZB have so far joined the facility. Syndication is scheduled to close on March 19.


CDC Finance & Leasing CorpÆs NT$1.3 billion five year facility has been completed via a syndicate of nine banks. The deal is split into a NT$1.2 billion revolving credit that features a margin of 125bp over the secondary CP rate and a NT$100 million portion that pays 110bp.

Mandated arrangers First Commercial Bank, Chinatrust Commercial Bank, Chang Hwa Commercial Bank, Taiwan Cooperative Bank and Ta Chong Bank committed $180 million apiece while managers Bank of Kaohsiung, Central Trust of China, Taiwan Business Bank, and Taiwan Finance Corporation pledged $100 million each.

E-Ton Solar Tech has signed a NT$4 billion multi-tranche facility. The deal comprises a NT$2 billion portion, a NT$1.5 billion revolver and a NT$500 million tranche.

Mandated arrangers Taiwan Cooperative Bank lent NT$500 million, Industrial Bank of Taiwan provided NT$450 million while Cathay United Bank, E Sun Commercial Bank, First Commercial Bank and Hua Nan Commercial Bank contributed NT$400 million each. Lenders Chang Hwa Commercial Bank took NT$250 million, Central Trust of China, Sunny Bank, Land Bank of Taiwan, Taipei Fubon Commercial Bank and Taiwan Business Bank held NT$200 million apiece and Bank of Kaohsiung and Taishin International Bank ended up with NT$100 million each.

The loan carries a margin of 35bp over the CP rate and a commitment fee of 10bp. Proceeds are for working capital requirements and to refinance existing debt.

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