Loan week, May 15-21

Australia

ABB Grain has secured a A$1.2 billion one-year extension from sole bookrunner Commonwealth Bank of Australia.

The debt package comprises a A$400 million term loan and an A$800 million revolving credit. Final allocations saw mandated lead arrangers Commonwealth Bank of Australia contributing A$390 million and Rabobank Australia holding A$255 million. Arrangers Westpac, ANZ and National Australia Bank committed A$183 million, A$174 million and A$129 million respectively. Participant HSBC rounded out the group with a hold of A$69 million.

Proceeds are to extend a facility of the same size signed in August 2008.

A A$450 million dual-currency fundraising for Telstra Corp was upsized from A$300 million and signed on May 19 via mandated lead arrangers and bookrunners Bank of China (Hong Kong) and Bank of Tokyo-Mitsubishi UFJ. Seven banks joined at lower levels.

The financing is split into a A$290 million three-year tranche and a A$160 million five-year term loan. The three-tier all-in pricing for the facility ranges from 165bp to 175bp over BBSW for the three-year tranche, and 205bp to 212bp for the other portion, depending on the current rating of the borrower.

Proceeds are for working capital and general corporate purposes.

General syndication of Woodside Petroleum's $1.1 billion facility, which was oversubscribed and increased from $300 million, was inked on May 19 via a consortium of 11 bookrunners. ANZ and Bank of Tokyo-Mitsubishi UFJ were the original mandated lead arrangers.

The three-year term loan features a spread of 225bp based on BBSW for Australian dollars, Libor for US dollars and yen Libor for Yen.

Syndication saw Bank of China (Macau), Bank of China (Sydney), Bank of Nova Scotia, Calyon, China Development Bank, Development Bank of Japan, Industrial & Commercial Bank of China, Mizuho Corporate Bank and Seng Heng Bank joining in at the top as equal status lead arrangers and bookrunners.

Proceeds are for general corporate and capital expenditure purposes.

Woolworths' $300 million-equivalent multi-currency facility was upsized to $700 million and was sealed on May 14 via a consortium of 12 bookrunners. ANZ and Citi were the original mandated lead arrangers and bookrunners.

The three year-deal comprises a $414 million term-loan and a $286 million revolver which are available in Australian dollars, US dollars or yen. The margin is priced at 220bp over BBSW, Libor and yen Libor respectively.

Among the bookrunners, Bank of America, Bank of China (Macau), Bank of China (Sydney) and Seng Hang Bank offered $45 million, $33 million, $25 million and $17 million respectively, while the remaining leads - ANZ, Citi, Bank of Nova Scotia, Bank of Tokyo-Mitsubishi UFJ, DBS, ICBC, Rabobank and SMBC - provided $41 million apiece. Participants Hua Nan Commercial Bank (Offshore) and Intesa Sanpaolo joined in with $25 million each, while Bank of Taiwan (Singapore), Chinatrust Commercial Bank, Mega International Commercial Bank (Offshore) and Taiwan Business Bank (Offshore) committed $17 million apiece.

Chuo Mitsui Trust and Banking, Norinchukin Bank and Land Bank of Taiwan (Singapore) gave $15 million, $13 million and $12 million respectively, while Taipei Fubon Commercial Bank took $11 million. Bank of Communications (Singapore), Bank of Kaohsiung (Offshore), Cathay United Bank (Singapore), Chang Hwa Commercial Bank (Offshore), Industrial Bank of Taiwan, Taishin International Bank (Offshore), Taiwan Cooperative Bank (Offshore) and Yuanta Commercial Bank held $8 million each. Bank SinoPac (Offshore) and Export-Import Bank of China lent $7 million apiece, while Chiba Bank (Hong Kong) rounded off the syndicate with $5 million.

Proceeds are for general corporate purposes.

China

General syndication of Liaoning Zhongwang Group's Rmb1 billion debt package has been launched via sole bookrunner Calyon.

The three-year term loan pays a spread of 100% of the PBOC rate and is secured by sales contracts and account receivables from China Northern Locomotive & Rolling Stock Industry and China Southern Locomotive & Rolling Stock Industry.

Banks are being invited on three levels. Mandated lead arrangers offering Rmb200 million and above earn 75bp, while lead arrangers joining with Rmb150 million to Rmb190 million get 65bp. Participants providing Rmb100 million to Rmb140 million receive 55bp.

Proceeds are to finance the payment of supply contracts. Banks are to revert by July 3.

Zhangjiagang Pohang Stainless Steel's $60 million two-year term loan has been sealed via co-arrangers Bank of America (Shanghai), HSBC (Beijing) and Standard Chartered Bank (China) on a club basis.

Guaranteed by POSCO Investment, the financing pays a spread of 320bp over Libor.