loan-week-may-15--19-2006

Loan Week, May 15 - 19 2006

A round up of the latest syndicated loan market news.
Australia

DBNGP FinanceÆs A$555 million five year dual tranche loan was completed on a club basis and signed on May 11. The facility is split into A$205 million and A$350 million term loans. Proceeds are to refinance existing debt.

Mandated arrangers ANZ, Barclays, BNP Paribas, Bank of Tokyo-Mitsubishi UFJ, Commonwealth Bank of Australia, Citibank, National Australia Bank, Societe Generale, WestLB and Westpac each contributed A$55.5 million.

Incitec Pivot has mandated Credit Suisse to lead arrange a A$400-A$500 million financing. The lead bank has fully underwritten the facility.

The deal carries a tenor of up to six years and banks will be invited to bid for pricing and terms. Proceeds are to finance the borrowerÆs share buy-back of a 15% stake from Orica as well as to support the A$165 million acquisition of Southern Cross Fertilisers from BHP Billiton. Proposals from banks are due shortly.

Mandated arranger Credit Suisse will sound out banks today (Friday) for a A$420 million facility for Integra Coal.

The borrower is the merged entity of coal mines Glennies Creek Colliery and Camberwell Coal. AMCI (backed by financial sponsor First Reserve Corp) owns 69% of the joint venture while 31% is owned by Korean and Japanese manufacturers comprising Posco, JFE, Nippon Steel and Toyota Motor.

Proceeds are to refinance existing debt of the coal mines as well as for a debt recapitalisation. The deal carries offtake arrangements with the Korean and Japanese manufacturers for the borrowerÆs coal production. A bank group should be finalised next week.

China

A $50 million and Rmb2 billion seven year financing for AU Optronics (Suzhou) and AU Optronics (Xiamen) was launched into sub-underwriting and general syndication on May 15. ABN AMRO Bank, Bank of Tokyo-Mitsubishi UFJ, HSBC and Standard Chartered Bank are the coordinating arrangers.

The US dollar facility is available to both borrowers while the renminbi financing comprises a Rmb560 million term loan and a Rmb240 million revolver for AU Optronics (Suzhou) and an Rmb840 million facility and a Rmb360 million revolving credit for AU Optronics (Xiamen).

The spread is 40bp over Libor for the US dollar tranche and 90% of the RMB base-lending rate for the renminbi portion. Fees are being offered to banks committing to the US dollar tranche only.

In senior syndication, coordinating arrangers underwriting $35 million or above earn a sub-underwriting fee of 2bp and a management fee of 18bp. Take-and-hold commitments of $30 million or above receive 20bp flat.

In general syndication, banks have been invited to join on two tiers. Co-arrangers lending $15 million to $29 million gain a participation fee of 15bp and senior managers providing $5 million to $14 million earn 10bp.

The deal features a five year put option and AU Optronics (L) Corp and AU Optronics Corp are providing guarantees.

Proceeds are to finance the borrowersÆ capital expenditure and general corporate requirements. Sub-underwriting is scheduled to close by May 30 while banks have until June 2 to respond in general.

Semiconductor Manufacturing International (Shanghai) Corp (SMISC)Æs $600 million dual-tranche facility is still in the market with banks expected to revert today (Friday). The financing has so far received seven verbal commitments. Proceeds will be used to finance the borrowerÆs capital expenditure and general corporate funding requirements. Signing is expected to be held at the end of May.


Hong Kong

Signing for CRE FinanceÆs HK$3 billion dual-tranche five year financing was held in Hong Kong on Monday. The loan is split equally into a term facility and a revolver, both offering a margin of 28bp over Hibor. Proceeds will be used to refinance the borrowerÆs HK$3 billion facility signed in October 2002.

The HK$6 billion five year revolving credit for Hang Lung Properties has been launched into general syndication. The eleven strong arranger group comprises Agricultural Bank of China, Bank of China, Bank of Tokyo-Mitsubishi UFJ, BayernLB, BNP Paribas, Citigroup, DBS Bank, ICBC (Asia), Mizuho Corporate Bank, Standard Chartered and SMBC. Among the mandated coordinating arrangers, BNP Paribas, Citigroup, DBS Bank, ICBC (Asia) and Standard Chartered are the bookrunners.

The facility pays a spread of 23bp over Hibor and banks have been invited to participate on three tiers. Coordinating arrangers lending HK$300 million or above receive an upfront fee of 37.5bp, leading to a top level all-in of 30.5bp over Hibor. Arrangers holding HK$200 million to HK$295 million gain 35bp for an all-in of 30bp and senior mangers taking HK$100 million to HK$195 million get 30bp for an all-in of 29bp.

Proceeds are to refinance existing debt. Banks have until June 2 to revert.

A HK$7 billion five year fundraising for Hongkong Land Holdings has been launched into syndication. Bank of China, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Calyon, DBS Bank, HSBC, Industrial & Commercial Bank of China, Mizuho Corporate Bank, Rabobank Nederland, Royal Bank of Scotland, Standard Chartered Bank and Sumitomo Mitsui Banking Corp are the mandated arrangers.

A consortium of seven banks has won the mandate for Hopewell FinanceÆs HK$4 billion five year revolver. They are Bank of China (Hong Kong), Bank of Communications, BNP Paribas, Calyon, China Construction Bank (Hong Kong), Citigroup and ICBC (Asia). The all-in yield offered to top level lead arrangers is 37bp over Hibor. The facility was launched into the market on Tuesday. Hopewell Holdings is providing a guarantee.

Ocean ParkÆs HK$4.16 billion dual tranche financing has received an overwhelming response in syndication with a total of 25 banks participating. The loan was substantially oversubscribed but was not increased.

Mandated lead arrangers Bank of China, DBS Bank and HSBC held HK$600 million each. Lead arrangers are China Development Bank lending HK$300 million, Royal Bank of Scotland committing HK$210 million, China Construction Bank providing HK$147.5 million and BNP Paribas, Citic Ka Wah Bank, Dah Sing Bank, Hang Seng Bank, HSH Nordbank, Sumitomo Mitsui Banking Corp and United Overseas Bank with tickets of HK$145 million each.

Fortis Bank joined as an arranger with a commitment of HK$95 million. Senior managers include CIC Singapore pledging HK$80 million, Shanghai Commercial Bank, Tai Fung Bank and Wing Hang Bank contributing HK$70 million apiece and Bank of China (Macau), Bank of East Asia and Bank of Tokyo-Mitsubishi UFJ holding HK$55 million each.

Joining as managers are International Bank of Taipei and Unicredito Italiano lending HK$40 million each and Bangkok Bank and Wing Lung Bank providing HK$30 million apiece. Signing will be held at the end of the month.

PCCWÆs self-arranged HK$4 billion five year fundraising is expected to be completed on a club basis. Pricing is likely to be around 50bp over Hibor. PCCW last visited the market in March 2003 when it borrowed a HK$3.003 billion term loan. That facility was priced at 93bp over Hibor and was arranged by Agricultural Bank of China, Bank of China (Hong Kong), HSBC, Standard Chartered, Credit Agricole Indosuez (Hong Kong) and Hang Seng Bank.

The deadline for Shanghai Industrial Investment Holdings (SIIC)Æs HK$3.5 billion five year fundraising has been extended to early next week. Many banks have turned down the invitation according to bankers close to the deal. Around seven banks are still awaiting official confirmations with a total ticket size of HK$1 billion. Proceeds will be used to refinance a $300 million term facility signed in October 2001. That facility was priced at 60bp over Libor.

Mandated arranger HSBC has launched a HK$500 million five year revolving credit facility for Tai Fook Securities into syndication. ICIC joined early as a coordinating arranger with up to two more investors expected to join at this level.

The loan carries a margin of 90bp over Hibor and banks have been invited to join on three levels. Arrangers lending HK$40 million or more receive a participation fee of 75bp, senior managers providing HK$30 million to HK$39 million gain 60bp and managers committing HK$20 million to HK$29 million earn 50bp.

Proceeds are for working capital requirements and responses are due by June 2.
India

Alok Industries' $100 million yen-equivalent financing has been allocated. The facility was oversubscribed and increased from $75 million. Mandated lead arrangers are Barclays Capital, Bank of India and State Bank of India contributing $12.67 million each. Arranger SBI International (Mauritius) pledged $10 million.

Co-arrangers include Cathay United Bank (Labuan), Indian Bank (Singapore), Persia International Bank and Syndicate Bank holding $5 million apiece, Fuhwa Bank providing $3 million and Chang Hwa Commercial Bank (Singapore) and Hua Nan Commercial Bank with tickets of $2.5 million each. Signing was held on April 26.

A $120 million five year, one-month fundraising for Essar Steel was signed in Singapore on May 11. Mandated lead arrangers Barclays Capital, State Bank of India, Export Development Canada and KfW took $15 million apiece. Co-arrangers include Bank of India lending $13 million, Arab Investment committing $12 million and Bank of Baroda (London), Indian Bank (Singapore) and Indian Overseas Bank (Hong Kong) taking $10 million each. Lead manager Bank of Negara Indonesia (Persero) contributed $5 million.

The $250 million five year dual tranche facility for Genpact has been launched into general syndication by mandated arrangers ABN AMRO, Banc of America Securities Asia and Citigroup. Several banks have already joined in sub-underwriting with a handful of investors expected to join at the top level shortly.

The deal features a margin of 87.5bp over Libor and fees to the market are on two levels. Senior managers lending $10 million to $15 million gain 18bp and managers committing $5 million to $10 million receive 12bp.

Proceeds are to refinance a $215 million facility signed in March last year and for recapitalisation requirements. Responses are due in mid-June.

JSW SteelÆs $200 million export credit facility has received approval from the Reserve Bank of India and mandated arranger ABN AMRO is launching the deal into general syndication today (Friday). The loan features a guarantee from Duferco.

The margin is 170bp over Libor and KBC Bank and KfW joined earlier as lead arrangers. Proceeds are for trade financing purposes.

The $40 million three and five year financing for Shree Renuka Sugars was launched into general syndication yesterday (Thursday). ABN AMRO is the bookrunner.

Bank of India, Bank of Baroda and State Bank of India joined in sub-underwriting as mandated lead arrangers with up to two more expected to participate at the top level.

The $20 million three year tranche offers a margin of 150bp over yen Libor and the $20 million five year portion pays 160bp. Banks have been invited to join on one level with lead arrangers committing $5 million receiving 7.5bp flat for the three year facility and 25bp for the five year.

Proceeds are to fund the borrowerÆs capacity expansion and responses are due by June 16.

Indonesia

Pamapersada NusantaraÆs dual tranche facility was signed on Wednesday, March 17. The deal amount was increased to $222 million from $160 million after an enthusiastic response in syndication.

Coordinating arrangers Citigroup Global Markets Asia, DBS Bank, Standard Chartered Bank and Sumitomo Mitsui Banking Corp held $20 million each. Joining as arrangers are United Overseas Bank lending $30 million, Export Development Canada providing $20 million, Bank of Tokyo-Mitsubishi UFJ committing $19 million, Oversea-Chinese Banking Corp pledging $18 million and Bank Central Asia with a ticket of $15 million.

Co-arrangers include Sumitomo Trust & Banking (Singapore) contributing $10 million, Indover Bank absorbing $9 million and Bank Rabobank International Indonesia taking $5 million. Lead managers are State Bank of India holding $7 million, Bank Resona Perdania lending $5 million and Cathay United Bank (Labuan) and Export-Import Bank of the Republic of China committing $2 million apiece.
Macau

Allocations for Arc of Triumph DevelopmentÆs HK$1.5 billion four year term facility have been finalised. Mandated lead arrangers BNP Paribas (Hong Kong) and Standard Chartered committed HK$250 million and HK$125 million respectively. Arrangers include Banco Weng Hang lending HK$120 million, Dah Sing Bank providing HK$110 million while five others û China Construction Bank, Nanyang Commercial Bank, United Overseas Bank, Tai Fung Bank and Wing Lung Bank û lent HK$95 million each. OCBC and ICBC (China) pledged HK$80 million apiece.

Co-arrangers are Bank of China (Macau), Bank of East Asia (Macau) and Scotiabank (Hong Kong) with tickets of HK$75 million each. Joining as senior manager is Malayan Banking (Hong Kong) with a contribution of HK$35 million. The facility is guaranteed by Chow Tai Fook Enterprises.

Signing will be held in late May or early June.

Malaysia

Bumiputra-Commerce BankÆs $300 million five year credit has closed syndication with five banks joined. ABN AMRO, Bank of Tokyo-Mitsubishi UFJ, BayernLB, Citigroup and Standard Chartered Bank are the mandated lead arrangers. Allocations are being finalised.


Singapore

Syndication of Olam InternationalÆs $300 million five year credit has been completed. A total of 15 banks joined mandated lead arrangers DBS Bank, HSBC, Rabobank International and Standard Chartered Bank. Signing is next week.

The deadline for Orchard TurnÆs S$1.56 billion five year dual tranche fundraising has been extended until the end of next week as banks process their approvals. Bank of Tokyo-Mitsubishi UFJ, Calyon, Citigroup, DBS Bank, Mizuho Corporate Bank, Standard Chartered Bank, Sumitomo Mitsui Banking Corp and United Overseas Bank are arranging the deal.

The loan offers a margin of 50bp over Sibor and a top level fee of 20bp flat. Proceeds are to support the development of the Orchard Turn site in Singapore.

Sub-underwriting for PSA InternationalÆs $2.6 billion dual-tranche financing has yet to close with several banks said to be in the final stages of gaining credit approval. Barclays Capital, DBS Bank and Royal Bank of Scotland are leading the deal.

South Korea

Coordinating arrangers Kookmin Bank and Standard Chartered Bank (Hong Kong) launched a $100 million three year loan-style FRN into syndication for Hyundai Engineering & Construction on May 17.

The facility carries a margin of 60bp over Libor and banks have been invited to join on three levels. Arrangers committing $15 million or more receive 48bp flat, co-arrangers lending $10 million to $14 million get 44bp and lead managers providing $5 million to $9 million earn 40bp.

There is a two year put/call option and proceeds are for working capital requirements of the borrowerÆs overseas construction projects. The deadline for responses is June 9.

Shinhan Bankæs Ñ30 billion transferable term loan was launched into general syndication yesterday (Thursday). The mandated lead arrangers are ABN AMRO, Banc of America Securities Asia, BNP Paribas, Calyon, Citigroup Global Markets Asia, HSH Nordbank (Singapore), ING Bank, Lloyds TSB Bank, Mizuho Corporate Bank and SMBC.

The facility is split equally into a 365-day tranche æAÆ and a two year tranche æBÆ that feature margins of 5bp and 10bp respectively. Banks have been invited to join on two levels. For tranche æAÆ, arrangers providing Ñ1.1 billion or above earn 6bp flat for a top level all-in of 11bp over yen Libor while co-arrangers lending Ñ400 million to Ñ1 billion receive 5bp for an all-in of 10bp over yen Libor. For tranche æBÆ, arrangers get an upfront fee of 10bp for a top level all-in of 15bp over yen Libor. Co-arrangers gain 8bp for an all-in of 14bp over yen Libor.

Proceeds will be used to refinance the borrowerÆs Ñ33 billion one-year term facility signed in May 2005. Banks are expected to revert on June 5.Taiwan

All Win International's NT$4 billion 12 year term loan should reach financial close today (Friday). International Commercial Bank of China is leading the facility.

Cathay United Bank is the latest to join with a ticket of NT$500 million. Bank of Taiwan and Farmers Bank of China joined earlier while Land Bank of Taiwan is expected to revert shortly.

BenQ Corp is expected to mandate Bank of Taiwan, Chinatrust Commercial Bank and International Commercial Bank of China to lead arrange a NT$10 billion five year credit shortly. The deal will feature a spread of 45bp over the CP rate and proceeds are for working capital requirements.

The NT$2.5 billion multi-tranche loan for Global Testing Corp has secured commitments from Hsin Chu Commercial Bank, Industrial Bank of Taiwan and Central Trust of China. Bank of Taiwan, Hua Nan Commercial Bank and Ta Chong Bank are the mandated arrangers.

A handful of banks are in the process of gaining approval to join and financial close should be reached by the end of the month.

Powerchip SemiconductorÆs NT$30 billion dual tranche financing is receiving an enthusiastic response and is likely to be increased to NT$40 billion. The 10 strong arranger group includes Bank of Taiwan, Cathay United Bank, Chang Hwa Commercial Bank, Chinatrust Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank, Industrial Bank of Taiwan, Land Bank of Taiwan, Taipei Fubon Commercial Bank and Taiwan Cooperative Bank.

Banks that have so far joined are Agricultural Bank of Taiwan, Bank of Kaohsiung, Bank of Overseas Chinese, Central Trust of China, Chiao Tung Bank, Chin Fon Commercial Bank, China United Trust & Investment Corp, EnTie Commercial Bank, Export-Import Bank of the Republic of China, Hsin Chu Commercial Bank, International Commercial Bank of China, Shin Kong Commercial Bank, Shanghai Commercial & Savings Bank, Ta Chong Bank and Taichung Commercial Bank.

Financial close is scheduled for early June.

Taiwan Broadband Communications' NT$16.2 billion multi-tranche financing was signed on May 4. A total of 17 banks participated in the transaction.

Bookrunners Chinatrust Commercial Bank, Citibank, DBS Bank and ING Bank held NT$1.1 billion apiece. Mandated lead arrangers ANZ Bank, Calyon, Cathay United Bank, Hsinchu International Bank, International Commercial Bank of China, Mizuho Corporate Bank, SG Asia, Sumitomo Mitsui Banking Corp, Ta Chong Bank, Taipei Fubon Bank, Taishin International Bank and WestLB had tickets of NT$930 million each. China Development Industrial Bank joined as a coordinating arranger with a commitment of NT$640 million.

Teco Electronics & Machinery is expected to announce the mandate for its NT$4 billion facility next week. A group comprising Bank of Taiwan, Hua Nan Commercial Bank, First Commercial Bank and Taiwan Cooperative Bank is one of consortiums bidding for the business.

Thailand

A Ñ9.3 billion three year term loan facility for Siam Panich Leasing (SPL) is in the market via mandated arranger Standard Chartered Bank. A roadshow was held last Wednesday.

The loan offers a margin of 45bp over yen Libor and banks have been invited to join on three levels. Arrangers committing Ñ1.65 billion earn 33bp flat, co-arrangers providing Ñ1.1 billion gain 27bp and lead managers contributing Ñ550 million receive 21bp.

SPL is a subsidiary of Siam Commercial Bank and proceeds are for general funding requirements. Bank responses are due by May 26.
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