Loan week, May 16-22

A roundup of the latest syndicated loan market news.

A A$170 million multi-tranche LBO facility for BNT Holdco, an SPV of Bras N Things, is looking to close syndication in the coming week via mandated lead arrangers ANZ, Bank of Scotland (International) and Royal Bank of Scotland.

The loan comprises an A$80 million six-year bullet, a A$50 million amortising loan, a A$10 million six-year revolver and a A$30 million 6.5-year subordinated debt portion.

Proceeds are to support the ANZ Capital and Hastings Private Equity-led leveraged buyout of Bras N Things.

Crown Group FinanceÆs A$600 million five-year dual tranche credit was launched into general syndication on May 9 via mandated arrangers and bookrunners ANZ, Bank of America, Commonwealth Bank of Australia, Royal Bank of Scotland and Westpac.

The deal is split equally into a term loan and a revolver portion.

The funds are to refinance existing debt and for general corporate purposes for casino operator Crown.

Primary HealthcareÆs A$2.54 billion multi-tranche fundraising has been launched into general syndication via lead arrangers and bookrunners ABN AMRO, Calyon, Credit Suisse, Deutsche Bank and National Australia Bank.

The two-year credit comprises a A$1.44 billion loan, a A$1 billion bullet and a A$100 million portion with a 12-month extension option. The deal has been partially funded.

Around eight commitments were already received in sub-underwriting and a further two banks, ANZ and Commonwealth Bank of Australia have joined in as early birds in general syndication with holds of $100 million each.

Syndication is slated to close by mid-June. Proceeds are to support the acquisition of Symbion Health.

Telstra CorporationÆs five-year term loan was upsized to $600 million from $500 million and sealed on May 20 via mandated lead arrangers Bank of China (Hong Kong) and Bank of China (Sydney).

The deal, which pays a spread of 80bp over three-month Libor, saw a total of eight international banks joining from Asia and Europe. The two mandated leads contributed $305 million altogether, while coordinating lead arrangers Sumitomo Mitsui Banking Corporation and Bank of Tokyo-Mitsubishi UFJ held $100 million and $75 million respectively.

Senior managers Banco Bilbao Vizcaya Argentaria (Singapore) contributed $50 million and DZ Bank (Singapore) gave $40 million. Managers Banca Monte Dei Paschi Di Siena, Cathay United Bank and Hua Nan Commercial Bank lent $10 million apiece.

Proceeds are for general corporate purposes.


Industrial & Commercial Bank of China (Asia), ING Bank, Rabobank, RBS and WestLB have re-launched a $248.3 million equivalent multi-tranche facility for Asia Timber Products, an SPV for Plantation Timber Products Group, into syndication. The previous structure of the loan required lenders to commit on a pro-rata basis to the onshore and offshore tranches û this has now been withdrawn and banks are allowed to commit to either portion.

The dual currency loan comprises an offshore portion made up of an $80 million five-year financing and a $116.5 million six-year credit, while the onshore tranche consists of a Rmb252 million six-year portion and a Rmb108 million five-year revolver. The dollar portions feature spreads of 275bp and 325bp over Libor respectively, while the two renminbi tranches are priced at 110% of the PBOC rate.

Banks have been invited on two levels. Mandated lead arrangers providing $25 million and above receive 175bp in upfront fees while lead managers lending between $15 million and $24 million gain 150bp flat.

Proceeds are to refinance an $86 million LBO financing for Plantation Timber Products Group in 2006 and to support an add-on acquisition of Asia Dekor Holdings.

Shanghai Zhenhua Port MachineryÆs $100 million three-year financing has been launched into senior syndication via mandated arrangers Calyon and Royal Bank of Scotland.

The loan pays a spread of 215bp over Libor.

A title of equal-status mandated arranger is given to banks committing $20 million and above on a take-and-hold level.

The closing date for senior syndication is scheduled for the end of May and general syndication will be launched soon after.

A $138 million 12-year revolving credit for Yu Zhong Hai Maritime and Yu Hua Hai Maritime, SPVs of Qingdao Ocean Shipping Company, has been inked via coordinating arrangers BNP Paribas (Hong Kong Branch), Bank of China and Bank of China (Hong Kong Branch) on a club basis.

Proceeds are to finance the construction of two shipping vessels.

Hong Kong

Citic PacificÆs $523 million shipping facility, arranged by Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Calyon and Standard Chartered, is expected to close in June.

The term loan is split into a three-year pre-delivery tranche and a 12-year post-delivery portion. Proceeds are to support the purchase of 12 115,000 dead-weight tonne (dwt) vessels.

A $160 million four year debt package for Pacific Andes Treasury Management was inked earlier this week (May 20) via mandated arrangers Bank of China (Tokyo Branch), CITIC Ka Wah Bank, Rabobank and Standard Chartered Bank.

The deal comprises a $100 million term loan and a $60 million revolver. The margin is priced at 125bp over Libor and features an average life of three years. The parent company Pacific Andes International Holdings is acting as the guarantor.

Final allocations saw the mandated arrangers committing $30 million apiece while co-arranger Bank of China (Singapore Branch) took $10 million.

Coming in as lead managers were Bank of Taiwan, Industrial & Commercial Bank of China (Asia), Taipei Fubon Commercial Bank, Taishin International Bank, Taiwan Business Bank and United Overseas Bank holding $5 million each.

Proceeds are to refinance an existing debt signed in July 2006 and for working capital purposes.

Yau Lee ConstructionÆs HK$260 million three-year revolver was signed on May 20 via sole bookrunner BNP Paribas. The deal was slightly oversubscribed.

The margin is priced at 110bp over Hibor and features an average life of 2.7 years. The facility also features a two-year extension option. Parent company Yau Lee is acting as the guarantor.

Final allocations saw the bookrunner contributing HK$50 million while equal-status arrangers Hang Seng Bank and Nanyang Commercial Bank held HK$75 million apiece. Coming in as arrangers were Industrial & Commercial Bank of China (Asia) and Bank of East Asia, providing HK$35 million each.

The funds are to support construction costs.

Tata Motors SPV TML HoldingsÆ $3 billion 12-month bridge facility has been further extended to accommodate lenders and is scheduled to close early next week. Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Citi, ING Bank, JPMorgan, Mizuho Corporate Bank, Standard Chartered Bank and State Bank of India are the leads who have also fully underwritten the loan.

The margin is priced at 85bp for the first six months, 120bp from the sixth to the ninth month and 150bp thereafter. The blended margin is 110bp over Libor.

Syndication has so far seen around eight to 10 commitments. Banks are undisclosed as yet.

The funds are to support the acquisition of Jaguar and Land Rover from Ford.


Indover BankÆs $117.5 million one year term loan has been completed via lead arrangers Bank Muscat, Bayerische Landesbank, Natixis, RZB Bank and Standard Chartered Bank.

Syndication saw BMO Capital Markets coming in as a co-arranger while AKA Ausfuhrkredit-Gesellschaft and Mashreqbank PSC came in as lead managers. Rounding off the syndicate was Landesbank Saar as a manager.

Proceeds are for general corporate purposes and trade financing.

PT IndosatÆs $200 million five-year term loan is progressing well in general syndication with around 13 banks in the process of obtaining approval. DBS Bank and ING Bank are leading the transaction.

The financing features a $100 million greenshoe option and has an average life of 4.02 years. Offshore banks are paid a margin of 185bp over Libor while onshore lenders get 190bp.

Those joining with a take-and-hold amount of $50m will earn the title of mandated lead arranger. There are also three additional levels underneath.

Proceeds are to refinance an existing debt facility, and to provide for capital expenditure and working capital requirements.

The deadline for commitments is at the end of this month, with signing targeted for early June.


A $380 million seven-year facility for two subsidiaries of Titan Chemicals, Titan Capital (L) and Titan Kimia Nusantara, was launched into syndication in early May via coordinating arrangers Standard Chartered and WestLB.

Banks are able to come in at three levels. Arrangers get an upfront fee of 85bp by committing $40 million or more, lead managers gain 70bp by contributing $30 million to $39 million and senior managers receive 55bp by holding $20 million to $29 million.

The margin of the amortising loan, which has an average life of 5.4 years, starts at 150bp over Libor from years one to three and steps up to 180bp from years four to seven. Lenders also enjoy a guarantee from the parent company.

Proceeds are to refinance a $446.3 million debt facility signed in November 2005 and a $60 million credit borrowed by an Indonesian subsidiary. Banks have until the second half of June to revert.


MorganiteÆs S$2 billion five year multi-tranche facility is still ongoing in syndication via mandated lead arrangers and bookrunners 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 which is not being syndicated to the market. The margin is priced at 150bp over SOR for all three tranches.

So far, HSBC has joined in at the top-level. 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 property, Farrer Court.

Resorts World at SentosaÆs (RWS) S$4.19 billion multi-tranche debt package is receiving a good response in general syndication via original mandated lead arrangers DBS Bank, HSBC, Oversea-Chinese Banking Corp, Sumitomo Mitsui Banking Corp and Royal Bank of Scotland.

The seven and a half year credit comprises a S$3.5 billion amortising loan, a S$500 million revolver and a S$193 million bank guarantee. DBS Bank and Oversea-Chinese Banking Corp jointly provided the bank guarantee. The deal pays a spread of 175bp over Libor.

Senior syndication was closed in late April which saw 10 banks joining as equal-status arrangers û Bangkok Bank, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Calyon, CIMB, Commerzbank, DZ Bank, JP Morgan, Maybank and National Australia Bank.

Limited general syndication was then launched for banks wishing to join in with smaller tickets and so far eight commitments have been received. Banks are slated to revert by the end of May.

Proceeds are for the construction of an integrated resort located on Sentosa Island, Singapore.

Syndication of SupernovaÆs S$200 million leveraged buy-out facility for the acquisition of Seksun Corp is finally coming to an end and is slated to close by the end of this month. The bookrunners are Chinatrust Commercial Bank, DBS Bank and United Overseas Bank (Asia). The financing is sponsored by Citi Venture Capital International.

The fundraising comprises three tranches û a short term loan, a revolving credit and a term loan facility with an average life of 3.25 years. The margin is priced at 335bp over SOR.

So far, commitments have been received from First Commercial Bank, Ta Chong Bank, Taishin International Bank and Oversea-Chinese Banking Corporation. The loan was funded in early January by the mandated arrangers.
South Korea

Hanwha CorporationÆs $60 million three-year floating rate note is being well received in syndication, led by sole mandated arranger Korea Development Bank.

So far three commitments have been received and the closing date for syndication has been extended to accommodate potential lenders. Banks are expected to revert soon and signing is scheduled for early June.

Proceeds are for general corporate purposes.


Chunghwa Picture TubesÆ NT$4 billion five-year revolver was inked last Thursday via mandated leads Land Bank of Taiwan, Mega International Commercial Bank and Taiwan Cooperative Bank. Cathay United Bank, Chang Hwa Commercial Bank and Hua Nan Commercial Bank joined the deal at lower levels.

Proceeds are for working capital purposes.

An amendment for Feng Ching Metal Corporation was signed on May 19 via sole mandated lead arranger and bookrunner Chinatrust Commercial Bank. Taiwan Cooperative Bank is the lead manager while Bank of Pan Shin, Bank of Taiwan, Cathay United Bank, Hwatai Bank, Sunny Bank, Taishin International Bank and Taiwan Business Bank are the managers.

The deal is to amend a NT$567 million three-year revolver signed on February 12, 2007. The loan amount stays the same while the new base of the margin, 128bp, is the secondary CP rate instead of the primary CP rate. There is a NT$378m letter of credit facility that is part of the debt package, but was not amended.

Syndication of Nan Ya Plastic CorporationÆs $285 million five-year fundraising was launched earlier this month via mandated lead arrangers Bank of Taiwan, Chinatrust Commercial Bank, Land Bank of Taiwan and Sumitomo Mitsui Banking Corporation.

Pricing of the facility is at 51bp over Libor and there is a commitment fee of 15bp, which kicks in if the usage is under 80% of the loan amount.

Banks are welcome to join at three levels. Mandated lead arrangers committing $50 million or above and from $30 million to $49 million earn a participation fee of 20bp and 15bp respectively. Co-arrangers coming in with tickets of $20 million to $29 million get 12.5bp and participants contributing between $10 million and $19 million receive 7.5bp.

Proceeds are for working capital purposes. The loan documentation is expected to be signed in the second or third week of June.

Pou Chen GroupÆs five-year financing was upsized to NT$7 billion from NT$5 billion and was sealed on 16 May via 13 mandated lead arrangers and bookrunners.

Mandated leads Bank of Taiwan, Bank of Tokyo-Mitsubishi UFJ, Cathay United Bank, Chang Hwa Commercial Bank, Chinatrust Commercial Bank, Citi, DBS Bank, E-Sun Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank, Land Bank of Taiwan, Mizuho Corporate Bank and Taiwan Cooperative Bank each committed NT$450 million, while participating banks Shanghai Commercial & Savings Bank and Taiwan Business Bank lent NT$400 million apiece, with Shin Kong Commercial Bank pledging NT$350 million.

The loan is priced at 43.5bp over the secondary CP rate. Proceeds are for working capital purposes.

The five-year debt package for Taiwan Polysilicon was increased to NT$9.8 billion from NT$9 billion and was signed on May 21 via lead banks Cathay United Bank, Chinatrust Commercial Bank, E-Sun Commercial Bank, Land Bank of Taiwan, Mega International Commercial Bank, Taipei Fubon Commercial Bank, and Taiwan Cooperative Bank.

The seven mandated lead arrangers earned a fee of 20bp by contributing NT$1 million apiece, while senior manager Agricultural Bank of Taiwan got 15bp by holding NT$800 million, managers Export-Import Bank of Republic of China and Taiwan Business Bank received 10bp by giving NT$600 million each, and participants First Commercial Bank and Shanghai Commercial & Savings Bank gained 5bp by providing NT$500 million and NT$300 million respectively.

The transaction pays a spread of 68bp over the secondary CP rate and the commitment fee is 15bp. Lenders have security against plant and machinery. Proceeds will be used to construct a plant in Tainan.

Zhongshen ConstructionÆs NT$2.99 billion four-year multi-tranche term facility was signed in early May via Land Bank of Taiwan, Taiwan Business Bank and Taiwan Cooperative Bank on a club basis.

The loan is split into a NT$1.39 billion tranche, which is priced at 76bp over Land Bank of TaiwanÆs own base rate, and two tranches of NT$70 million and NT$1.53 billion, respectively, that are priced at 107bp over the same base. Proceeds are for construction purposes.
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