Loan week, May 15-21

A roundup of the latest syndicated loan market news.


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.


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.

The leads each provided $20 million and proceeds are to repay existing indebtedness.


IOC Paradip Refinery's Rs149 billion project financing was completed on May 14 via SBI Capital Markets.

The 14-year term loan is priced at 125bp below SBI's BPLR.

Final allocations saw the lead taking Rs46.3 billion, while participant Canara Bank provided Rs14.5 billion. Bank of Baroda, Central Bank of India, Housing and Urban Development Corp, Life Insurance Corp of India and Union Bank of India committed Rs9.5 billion apiece. Indian Overseas Bank pledged Rs6.5 billion, while Indian Bank, State Bank of Hyderabad, UCO Bank and United Bank of India lent Rs4.5 billion each.

Syndicate Bank ended up with Rs3.5 billion, while Corporation Bank, Dena Bank and Oriental Bank of Commerce joined in with Rs2.75 billion apiece. State Bank of Mysore and State Bank of Travancore contributed Rs1.8 billion each and Jammu & Kashmir Bank took Rs1 billion.

Proceeds are to fund a crude oil refinery in Orissa, India.


A PKR5.8 billion four-year facility for Pakistan Mobile Communications has been inked via mandated lead arrangers Askari Bank, Faysal Bank, Habib Bank and Standard Chartered Bank with Pak Brunei Investment and Dubai Islamic Bank joining at lower tiers.

The debt package is priced at 265bp over six-month Kibor. Proceeds are for general corporate purposes.


Vitol Asia's $525 million 364-day revolving credit has been launched into syndication by mandated lead arrangers Commonwealth Bank of Australia, DBS Bank, ING Bank, KBC Bank, Oversea-Chinese Banking Corp, Sumitomo Mitsui Banking Corp, Standard Chartered and United Overseas Bank.

The bullet loan features a margin of 125bp over Libor and has a greenshoe option to increase the loan up to $625 million. Mandated leads joining with $20 million or more get a 50bp upfront fee, while arrangers with a hold of $10 million to $19 million receive 40bp.

Proceeds are to refinance a $625 million debt signed in July 2008. Potential lenders will have until late June to revert.


AU Optronics' NT$25 billion deal was launched into general syndication on May 20 via a consortium of nine bookrunners led by Mega International Commercial Bank.

Proceeds are for working capital purposes.

Shining Building Business's NT$4.2 billion fundraising has been completed via sole bookrunner Land Bank of Taiwan.

The debt package is split into three five-year term loans - an NT$880 million portion, a NT$3.2 billion tranche and a NT$200 million portion. The first tranche is priced at 133bp over the average one-year savings deposit rate of Bank of Taiwan, Chang Hwa Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank, Land Bank of Taiwan and Taiwan Cooperative Bank. Tranches two and three are priced at 155bp over the same rate. The pretax pricing floor for tranche one is 2.84% and for the second and third tranches 3.07% .

Final allocations saw the mandated lead commit NT$1.3 billion, while joint arranger Taiwan Business Bank came in with NT$627 million. Participants Agricultural Bank of Taiwan, Hua Nan Commercial Bank, Taishin International Bank and Taiwan Cooperative Bank lent NT$269 million apiece, while King's Town Bank and Bank of Taiwan joined in with NT$572 million and NT$447 million respectively. DBS rounded off the syndicate with NT$200 million.

Proceeds are to finance the land acquisition and construction for Shining Imperial Palace at Situn district of Taichung city; and to provide for working capital needs.

Syndication of Taiwan Cement Corp's NT$15 billion financing has been closed via a consortium of 10 local and international coordinating arrangers led by Mega International Commercial Bank.

Mandated lead arrangers Bank of Taiwan, Bank of Tokyo-Mitsubishi UFJ, Bank Sinopac, Calyon, Chinatrust Commercial Bank, E.Sun Commercial Bank, Hua Nan Commercial Bank, Land Bank of Taiwan, Mega International Commercial Bank and Taiwan Cooperative Bank have received commitments from co-arrangers Agricultural Bank of Taiwan, Bank of East Asia, Cathay United Bank, EnTie Commercial Bank, KBC, King's Town Bank, Shanghai Commercial & Savings Bank, Taichung Commercial Bank, Taiwan Business Bank and Yuanta Commercial Bank.

Proceeds are to refinance the borrower's existing debt facilities, including the NT$15 billion five-year facility signed in December 2005 and corporate bonds issued in 1999, and to provide for working capital. Signing is slated for early June.

Wisdom Marine Line's ¥16 billion ship financing is in the market via sole mandated lead arranger Mega International Commercial Bank. E.Sun Commercial Bank is joining as a participant.

The 8.5-year loan is split into a ¥15 billion portion and a ¥1.26 billion tranche. Both are priced at 137.5bp over three month Tibor.

Proceeds are for the purchase of seven bulk carriers.


Siam Synthetic Latex's Bt8.5 billion 10-year term loan has been completed via mandated lead arrangers Bank of Ayudhya and Kasikornbank.

The debt consists of a Bt5.1 billion tranche and a Bt3.4 billion portion.

Final allocations saw the bookrunners, Bank of Ayudhya and Kasikornbank, provide Bt2.6 billion and Bt1.4 billion apiece, while participants Siam City Bank and Thanachart Bank joined in with Bt900 million and Bt300 million each.

Proceeds are to fund the development of a Specialty Elastomer Plant in the Rayong Province. 

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