loan-week-may-18

Loan week, May 1-8

A roundup of the latest syndicated loan market news.
China

Chailease International FinanceÆs RMB210 million three-year term loan was signed last Wednesday after the borrower decided to close the loan instead of waiting for commitments to reach Rmb300 million. Parent company, Chailease Finance Co is acting as the guarantor.

Sole mandated lead arranger and bookrunner Mizuho Corporate Bank committed Rmb80 million while lead arranger Agricultural Bank of China (Shanghai branch) and arranger First Sino Bank joined in with Rmb100 million and Rmb30 million respectively.

The deal is priced at 110% of the PBOC rate and has a commitment fee of 15bp. Proceeds are for general working capital purposes.


A $115 million 10-year debt package for ChangJiang Shipping Group Phoenix has been sealed via sole bookrunner BNP Paribas.

The loan pays a spread of 95bp over Libor.

Final allocations saw BNP Paribas contributing $30 million while Industrial & Commercial Bank of China and ING Bank provided $60 million and $25 million respectively.

Proceeds are to support the construction of four shipping vessels.

Hainan Airlines CompanyÆs $120 million two-year offshore financing has been inked via sole lead arranger Royal Bank of Scotland. The deal was oversubscribed and commitments were scaled back at the borrowerÆs discretion and was downsized from $131 million.

The facility is split into four term loans comprising $16.7 million, $16.8 million, $43.7 million and $42.8 million portions.

Syndication saw four banks joining in as lead arrangers - Bayerische Hypo-und Vereinsbank, Bayerische Landesbank, Nanyang Commercial Bank and Natixis.

The funds are to finance the purchase of two 737 and two 787 Boeing aircraft which are slated to be delivered in 2010.

After a long delay, TCC Guigang Cement CorpÆs Rmb900 million dual tranche fundraising has finally been completed via mandated leads and bookrunners BNP Paribas, Calyon, Standard Chartered Bank and Oversea-Chinese Banking Corp. The deal was downsized from Rmb1.06 billion as a few banks did not obtain their credit approvals in time.

The deal is split into a Rmb47.2 million five-year portion and a Rmb352.8 million three-year revolver priced at 105% of the PBOC rate. The two tranches have a two-year extension option. Taiwan Cement Corp is acting as the guarantor.

Final allocations saw the bookrunners committing Rmb100 million apiece while China Development Bank and Bank of China joined in as equal-status arrangers with holds of Rmb300 million and Rmb200 million respectively.

Proceeds are to support the construction of the second phase cement plant.

Wuhan Iron & SteelÆs $200 million three-and-a-half-year credit is still in syndication and is being led by bookrunners Calyon and Royal Bank of Scotland.

The bullet term loan features a spread of 180bp over Libor, flexed-up from 110bp.

At present, syndication has seen 10 banks joining in. Banks have until next week to revert.

Hong Kong

Integrated Precision EngineeringÆs four-year dual tranche fundraising was downsized to HK$225 million from HK$250 million and inked on 25 April. Mandated lead and sole bookrunner Standard Chartered Bank contributed HK$49 million, while lead manager Bangkok Bank committed HK$30 million. Managers Chang Hwa Commercial Bank lent HK$28 million, while DBS Bank, E.Sun Commercial Bank, Industrial & Commercial Bank of China, Land Bank of Taiwan and United Overseas Bank held HK$20 million apiece. Bank of Taiwan rounded out the group with HK$18 million.

The facility, which pays a spread of 85bp over HIBOR, is to refinance existing indebtedness and for corporate funding purposes

India

A $210 million three-year loan for Bank of India has been signed via mandated leads Bank of Tokyo-Mitsubishi UFJ, DZ Bank, HSBC, Intesa Sanpaolo and Sumitomo Mitsui Banking Corp. The facility was oversubscribed and upsized from $100 million due to an overwhelming response from the market.

The deal features a spread of 90bp over Libor.

Syndication saw around 20 commitments being received but are undisclosed as yet. Proceeds are for general corporate purposes.

A $170 million yen-equivalent one-year term loan for Industrial Development Bank of India (IDBI) has been signed via mandated leads BNP Paribas, DEPFA Bank and DZ Bank. BNP Paribas is the sole bookrunner. The deal was upsized from $130 million due to a good market response.

Final allocations saw BNP Paribas and DEPFA Bank providing $30 million apiece while DZ Bank took $25 million. Coming in as equal-status arrangers were Fortis Bank and Oversea-Chinese Banking Corp, contributing $20 million and $15 million respectively.

Arrangers Banca Monte dei Paschi di Siena and Banque des Mascareignes committed $10 million each, while co-arrangers First Commercial Bank and Taiwan Business Bank held $9 million and $6 million respectively. Rounding off the syndicate were Banco Popolare di Verona e Novara Scarl, Chang Hwa Commercial Bank and Land Bank of Taiwan, lending $5 million each.

Proceeds are for general corporate purposes.
Philippines

A $300 million five-year facility for JGSH Philippines, an SPV of JG Summit Holdings, has been completed via a consortium of 13 mandated lead arrangers. The original lead arranger and sole bookrunner was ING Bank. The deal was increased from $150 million due to an enthusiastic market response.

The loan features a margin of 245bp over Libor and an average life of four years. JG Summit Holdings is acting as the guarantor.

Final allocations saw ING Bank committing $35 million. Coming in as equal-status arrangers were BPI Capital Corp with a hold of $25 million, while Development Bank of Philippines, Land Bank of the Philippines and SB Capital provided $22.5 million apiece. Calyon, China Banking Corp, Mizuho Corporate Bank, Rizal Commercial Bank Corp, Sumitomo Mitsui Banking Corp and Union Bank of Philippines contributed $18 million each and Chinatrust Commercial Bank and Metropolitan Bank & Trust gave $13 million apiece.

Lead manger Mega International Commercial Bank took $10 million while senior managers Bank of Tokyo-Mitsubishi UFJ and Taiwan Cooperative Bank ended up with $8 million each. Maybank International and Maybank Philippines committed $5 million and $3 million respectively. Rounding off the syndicate was Cathay United Bank as a manager with a hold of $4.5 million.

The funds are to refinance an existing $300 million bond signed in June 2003.

Singapore

Farrer CourtÆs S$2 billion five-year multi-tranche facility is being well received in syndication. The mandated lead arrangers and bookrunners are DBS Bank, Oversea-Chinese Banking Corp, 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 that is not being syndicated to the market. The margin is priced at 150bp over SOR for all three tranches.

So far, a number of verbal commitments have been received but there are no written confirmations yet. Syndication is expected to close by the end of the month.

The funds are to support the acquisition of land and for the construction of real estate properties.

A $600 million revolver for LaSalle Asia Opportunity Fund II and LaSalle Asia Opportunity Fund III, SPVs of LaSalle Investment Management (Asia) is being well received in syndication. The lead arrangers and bookrunners are Royal Bank of Scotland, Standard Chartered Bank and United Overseas Bank.

So far, syndication has seen WestLB joining in as an equal-status arranger along with a handful of other commitments. The facility may be upsized to $800 million due to the good response from the market.

Syndication is scheduled to close by the end of May.

Syndication of MGP BerthÆs S$1.94 billion 46-month dual tranche fundraising is looking to close in the coming week via mandated arrangers and bookrunners DBS Bank, Hypo Real Estate Capital, Oversea-Chinese Banking Corp 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, a handful of commitments have already been received and the leads are waiting on a few more responses from potential lenders.

The signing date is slated for the end of May. Proceeds are to partially refinance an existing S$1.42 billion bridge loan and to fund construction costs.

A S$2.25bn facility for SinoSing Power, an SPV of Tuas Power, was launched into limited syndication on April 25 via mandated lead arrangers BNP Paribas, Calyon, DBS Bank, Fortis, Oversea-Chinese Banking Corp and Sumitomo-Mitsui Banking Corp. With the exception of Fortis, the mandated leads are also acting as bookrunners.

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.

South Korea

Korea Exchange BankÆs dual tranche $204 million equivalent one-year credit was sealed on May 5 via a syndicate of 10 banks on a club basis.

The deal comprises $120 million and Ç56 million term loans, paying a spread of 50bp over Libor and Euribor respectively.

Final allocations saw the lenders committing to either the US dollar or Euro tranche. Banc of America Securities Asia, Calyon, DZ Bank, HSBC, Standard Chartered Bank and Wachovia Bank contributed $20 million apiece while Bayerische Landesbank, Commerzbank, HSH Nordbank and Landesbank Baden-Wurttemberg gave Ç14 million each.

Proceeds are to refinance an existing $220 million loan signed in November 2007 and for working capital purposes.

Taiwan

A dual currency fundraising was signed last month for Cosmo Electronics Corp and PT COSMO Technology via sole mandated lead arranger and bookrunner Taishin International Bank.

The three-year revolving facility is divided into a NT$420 million portion for Cosmo Electronics Corp and a $12.6 million part for PT COSMO Technology. Cathay United Bank, Chang Hwa Commercial Bank, Taishin International Bank and Taiwan Business Bank committed NT$80 million and $2.4 million apiece, while Mega International Commercial Bank and Shanghai Commercial & Savings Bank provided NT$50 million and $1.5 million each.

The margin of the deal is at 85bp over the secondary CP rate or over Libor and the commitment fee is 25bp. The participation fee for managers who lent NT$160 million or above was 8bp while participants that held NT$100 million to NT$159 million got 4bp.

Proceeds are for refinancing and general working capital purposes.

Kelti GroupÆs NT$2.225 billion dual tranche fundraising for its SPV was launched into general syndication on Monday via sole lead arranger and bookrunner Cathay United Bank.

The debt package includes a NT$1.125 billion bridge loan, which is priced at 80bp over the secondary CP rate, and a NT$1.1 billion term loan that has a margin of 90bp. There is a commitment fee of 30bp.

Banks are welcome to join at three levels. Co-arrangers committing NT$3 billion or more get a 10bp participation fee, while lead managers and managers committing NT$2 billion to NT$2.99 billion and NT$1billion to NT$1.99 billion receive 7bp and 5bp respectively.

Proceeds are for the construction of a commercial building. The deadline for commitments is expected to be in early June.

A NT$4.2 billion financing for Shang Steel Corp was signed via mandated lead arrangers Bank of Taiwan, Chinatrust Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank, Land Bank of Taiwan, Taipei Fubon Commercial Bank and Taiwan Business Bank on a club basis on April 30.

The deal is split into a NT$1.8 billion seven-year term loan for the acquisition of An Feng Steel Co, a NT$1 billion seven-year term facility and a NT$1.4 billion five-year revolver for working capital purposes.

The leads committed an equal portion on all three tranches and receive a spread of 42bp over the secondary CP rate.

A NT$2 billion dual tranche debt package for Unitech Printed Circuit Board Corp was signed on April 30 through mandated arrangers and bookrunners Cathay United Bank, Industrial Bank of Taiwan, Taipei Fubon Commercial Bank and Taishin International Bank.

The credit is split into a NT$1 billion term loan and a NT$1 billion revolver which can be drawn in US dollars. Taishin International Bank committed NT$280 million and the other three leads held NT$240 million each. Chang Hwa Commercial Bank joined the deal as a lead manager by lending NT$200 million. Managers Agricultural Bank of Taiwan, Land Bank of Taiwan, Taiwan Business Bank and Taiwan Cooperative Bank provided NT$180 million apiece with Shin Kong Commercial Bank rounding out the group with NT$80 million.

The financing pays a spread of 62.5bp over the secondary rate and the commitment fee is 20bp. The participation fee for co-arrangers committing NT$300 million or above is 15bp, while lead managers lending NT$200 million to NT$299 million get 8bp and managers providing NT$100 million to NT$199 million gain 5bp.

Proceeds of the deal are to finance the purchase of machinery equipment and for general working capital purposes.

Yieh Phui EnterpriseÆs NT$4.4 billion facility, which is secured by real estate and machinery, was inked in late April. The financing is split into a NT$4 billion term loan and a NT$4.4 billion guarantee facility with a tenor of five years. The maximum outstanding amount of the two tranches cannot exceed NT$4 billion.

Coordinating arrangers Industrial Bank of Taiwan and Taiwan Cooperative Bank held NT$520 million and NT$470 million respectively, while Hua Nan Commercial Bank, Land Bank of Taiwan, Mega International Bank and Taishin International Bank committed NT$450 million apiece.

The term loan is priced at 102bp over the secondary CP rate and the guarantee facility is priced at 115bp.
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