Loan Week, May 18-24

A roundup of the latest syndicated loan market news.

ANZ Investment Bank, Westpac and Toronto Dominion Bank have launched Australian Pacific TouringÆs A$1.8 billion dual-tranche facility into general syndication.

The deal is split equally into two tranches with tenors of three and five years.

Banks have been invited to join on two levels. Banks joining in with holds of A$125 million and above get the title of co-arranger and those committing between A$75 million and A$125 million will get the senior lead manager title.

The pricing for this facility, according to a banker, is in line with similar infrastructure deals in Australia.

The deadline for banks to respond is the end of June.

Bilfinger BergerÆs A$600 million three year revolver has launched into syndication via mandated arrangers and bookrunners ANZ Investment Bank and Citigroup.

Proceeds are to refinance existing debt and for general corporate purposes. Syndication is expected to close by the end of the month.

A A$1.25 billion dual-tranche revolving facility for ING Office Fund has been launched via mandated lead arrangers Citigroup, ING and Westpac.

The fundraising is split into a A$500 million three year financing and a A$750 million five year tranche.

The loan purpose is to refinance existing debt and for general corporate purposes.

Mirvac Group Funding and Mirvac Group Finance have secured a A$2.225 billion dual-tranche revolving credit via a syndicate of 13 banks.

Mandated arrangers ANZ Investment and Westpac contributed A$250 million apiece while Citigroup took A$150 million.

Co-arrangers Commonwealth Bank of Australia and ING Bank held A$300 million each. Royal Bank of Scotland provided A$175 million while BNP Paribas and JP Morgan committed A$150 million each. Oversea-Chinese Banking Corp took A$125 million while Bank of Tokyo-Mitsubishi UFJ, St George Bank and Sumitomo Banking Corp took A$100 million apiece. Calyon ended up with A$75 million.

Proceeds are to provide for general corporate requirements and to refinance an existing debt signed in June 2006.

An A$800 million multi-tranche facility for OneSteel Finance has signed as a club deal via mandated lead arrangers Citigroup and National Australia Bank.

The facility comprises a A$300 million two year loan, a A$300 million three year financing and a A$200 million four year fundraising. All tranches are term loans and are priced over the Australian Bankers Acceptances (ABA).

Proceeds are to refinance an existing debt.

Toll FinanceÆs A$3.2 billion three month bullet financing has signed via mandated arrangers ANZ Investment Bank, Citigroup and Westpac.

The bridge facility is split into a A$2.4 billion loan and an A$800 million portion with the mandated arrangers committing A$1.067 billion apiece.

Proceeds are to refinance existing debt.

Merrill Lynch Private Equity and Pacific Equity PartnersÆ A$605 million leveraged buy-out facility to support the acquisition of Veda Advantage has been launched into syndication via Merrill Lynch and UBS.

The six year facility is split into a A$430 million term loan that features a spread of 237bp over BBSW, a A$50 million portion and a A$15 million revolver with margins of 150bp and 137.5bp respectively. The deal also consists of a A$110 million mezzanine loan.

Banks have until the end of June to respond.


Syndication has closed and allocations finalised for China International Marine Containers (Group)Æs $200 million five year term facility via mandated arrangers Citigroup and ING Bank both of whom ended up with $30 million apiece.

Arrangers Bank of Tokyo-Mitsubishi UFJ and Nanyang Commercial Bank provided $35 million each while co-arrangers Bank of Beijing, BayernLB, Korea Development Bank, Mizuho Corporate Bank, NordLB, Sanpaolo Imi and Svenska Handelsbanken committed $10 million apiece.

The facility pays a margin of 30bp over Libor. The signing ceremony is to be held on May 25.

Syndication has closed for Export-Import Bank of ChinaÆs $500 million term financing via a syndicate of eight banks. The deal was funded on April 24.

Mandated arrangers Bank of China committed $80 million while Bank of China (Shanghai Branch) held $70 million. Bank of Montreal (Beijing Branch), Bank of Tokyo-Mitsubishi UFJ (Beijing Branch), BNP Paribas (Beijing Branch), Calyon (Beijing Branch) and Standard Chartered each took $64 million while ING Bank (Shanghai Branch) ended up with $30 million.

Sinochem CorpÆs RMB1 billion three year fundraising has been completed via sole arranger Standard Chartered which provided RMB500 million.

Lenders Bank of Tokyo-Mitsubishi UFJ and Deutsche Bank held RMB300 million and RMB200 million respectively.

The margin is 90bp over the PBOC rate. Proceeds are to refinance existing debt.

Unilever (China) has secured a $150 million one year financing via sole bookrunner HSBC. Mandated arrangers ABN AMRO, HSBC and Mizuho Corporate Bank each lent $50 million.

The deal carries a margin of 17bp over Libor. Unilever is the guarantor.

Hong Kong

An $80 million three year term loan for AMVIG Holdings was signed on May 18 via mandated arrangers ABN AMRO and Commonwealth Bank of Australia. ABN AMRO is the sole bookrunner.

Allocations have been finalised with the mandated arrangers committing $5.5 million apiece. Arrangers China Construction Bank (Hong Kong Branch) took $8.75 million with CITIC Ka Wah Bank holding $5.5 million. Contributing $4.5 million each were Bank of Taiwan (Hong Kong Branch), CIMB Bank (Hong Kong Branch), First Commercial Bank (Hong Kong Branch), Hang Seng Bank, Mizuho Corporate Bank and OCBC (Hong Kong Branch).

Coming in as senior managers were Arab Bank (Singapore Branch), ICBC (Asia) and United Overseas Bank (Chengdu Branch) providing $4.25 million apiece. Korea Development Bank (Shanghai Branch), Maybank (Hong Kong Branch) and Public Bank (Hong Kong Branch) each held $3 million.

Proceeds are for working capital purposes.

A HK$2.1 billion five year term loan for Beijing Enterprises Holdings has been launched into syndication via mandated arrangers Bank of China, BNP Paribas, Calyon, DBS Bank, Mizuho Corporate Bank and Rabobank.

Banks have been invited on two tiers. Arrangers joining with commitments of HK$150 million or more get a management fee of 32bp. Lead managers holding between HK$75 million and HK$150 million receive 30bp.

The facility features a spread of 28.5bp over Hibor. Banks are expected to revert by June 8.

Barclays Capital and HSBC have been mandated to arrange Alok IndustriesÆ $75 million five year dual currency loan that features a $25 million greenshoe.

The deal is denominated in dollars and yen and carries a margin of 220bp over Libor for the dollar-denominated tranche and 230bp over Yen Libor for the yen-denominated portion. Proceeds are to refinance an existing deal signed in April 2006.

The facility is expected to launch into general syndication in early June.

A $440 million three and a half year facility for Emaar-MGF Land was oversubscribed and is expected to be completed by the end of the week via mandated lead arrangers Citigroup, Arab Dhabi Commercial Bank, Bank of China, DBS Bank, First Commercial Bank and United Overseas Bank. Citigroup was the original sole mandated arranger.

The loan pays a margin of 70bp over Libor and has an average life of three years.

Final allocations saw the mandated lead arrangers providing $45 million apiece with sole lead arranger Export Development Canada holding $30 million. Arrangers Bank of China (Tokyo Branch) and Mega International Commercial Bank of China took $21.5 million each.

Lead managers Bank of Taiwan and Chinatrust Commercial Bank committed $20 million and $15 million respectively. Bank Sinopac gave $12 million, with Arab Investment Company, Chang Hwa Commercial & Savings Bank, Land Bank of Taiwan and Shanghai Commercial & Savings Bank taking $10 million apiece. E.Sun Commercial Bank and Taiwan Shin Kong Commercial Bank contributed $5 million each.

Banks were invited to join on three tiers. Lead arrangers joining with $50 million or above receive 25bp in fees for a top-level all-in of 78.33bp over Libor, arrangers contributing $25 million to $49 million take 21bp for an all-in of 77bp and lead managers committing $10 million to $24 million earn 16.5bp for an all-in of 75.5bp.

ABN AMRO, Barclays Capital, Calyon and HSBC have been mandated to arrange Reliance CommunicationsÆ $1 billion six year fundraising. The deal is expected to be launched in June.

Proceeds are for general corporate purposes.

Reliance IndustriesÆ $2 billion 10 year facility was signed on May 19 via a consortium of 14 mandated arrangers and bookrunners, ABN AMRO, Banc of America Securities Asia, Bank of Tokyo-Mitsubishi-UFJ, Calyon, Citigroup, DBS Bank, DZ Bank, HSBC, ICICI Bank, ING Bank, Intesa Sanpaolo, Rabobank, Standard Chartered and Sumitomo Mitsui Banking Corp.

Joining as equal-status arrangers were BayernLB, BNP Paribas, Commonwealth Bank of Australia, Export Development Bank, KFW IPEX-Bank, NordLB and WestLB.

The facility has an average life of seven years with a grace period of four years and pays a margin of 51bp over Libor.

Syndication saw the bookrunners committing $94.29 million apiece, with mandated arrangers Export Development Bank and KFW IPEX-Bank providing $100 million each. BayernLB, BNP Paribas, NordLB and WestLB contributed $70 million apiece, with Commonwealth Bank of Australia holding $60 million. Arrangers Royal Bank of Scotland and Societe Generale gave $50 million and $40 million respectively, and sole co-arranger Mega International Commercial Bank took $20 million. Land Bank of Taiwan, Shanghai Commercial & Savings Bank and Taiwan Cooperative Bank contributed $9.98 million each as lead managers.

A four tier participation structure was offered, with mandated arrangers joining with $100 million or above receiving 87.5bp for an all-in of 64.5bp over Libor. Banks joining with take-and-hold commitments of $75 million or above get 87.5bp for an all-in of 63.5bp. Arrangers pledging $40 to $60 million receive 80.5bp for an all-in of 62.5bp, co-arrangers joining with $28 million to $39 million gain 73.5bp for an all-in of 61.5bp while lead managers contributing $10 million to $19 million earn 66.5bp for an all-in of 60.5bp.

Proceeds are for general corporate purposes.

Vedanta ResourcesÆ $1.1 billion one year bridge has been launched into sub-underwriting via mandated arrangers ABN AMRO, Barclays Capital, Citigroup and ICICI Bank.

Mandated arranger titles are available for holds of $125 million and $100 million with fees of 30bp and 20bp respectively.

The deal is expected to be launched into general syndication in mid-June. Proceeds are to fund the purchase of a 51% stake in Sesa Goa.


Bank of Tokyo-Mitsubishi UFJ had a challenging time finalising the allocations for CIMB BankÆs $200 million facility that was oversubscribed by 88%, to the dismay of participating banks.

Sole mandated arranger Bank of Tokyo-Mitsubishi UFJ provided $47 million while BayernLB took $30 million. Bank of China and NordLB held $25 million each.

Natixis and arrangers Shinkin Bank and United Overseas Bank committed $15 million apiece. Agricultural Bank of China, American Express and Landesbank Baden Wurttemberg lent $8 million apiece while Banca Popolare di Novara ended up with $4 million.
New Zealand

Syndication has been completed for Zespri GroupÆs NZ$200 million one year revolver on a club basis with ANZ Investment Bank, Bank of New Zealand, Citigroup and Rabobank each lending NZ$50 million.

South Korea

Hynix-ST SemiconductorÆs $750 million five year loan is still yet to launch via mandated arrangers China Development Bank and Korea Development Bank.

The borrower has approached around 18 existing lenders that have until May 25 to revert.

The purpose of the loan is to fund the construction of the second phase of a wafer plant project based in Wuxi.


RSEA Engineering CorpÆs NT$24 million dual-tranche fundraising has been completed via a consortium of five banks.

The three year loan comprises a NT$20 million portion and a NT$4 million revolver that carry a margin of 42bp over the post office savings rate.

Mandated arrangers Chinatrust Commercial Bank and Taipei Fubon Bank committed NT$5 million each while Shin Kong Bank held NT$4.5 million. Bank of Taiwan and lender Taiwan Business Bank provided $3.5 million apiece.

Syndication has been completed for Test Rite InternationalÆs NT$3 billion five year fundraising via a syndicate of five banks.

The dual currency loan carries a margin of 60bp over the secondary CP rate and 55bp over Libor.

Land Bank of Taiwan committed NT$750 million while Agricultural Bank of Taiwan, Bank of Taiwan, Taiwan Business Bank and Taiwan Cooperative Bank lent NT$500 million apiece. Lender Shanghai Commercial Bank & Savings Bank ended up with NT$250 million.

Proceeds are to refinance existing debt and for general corporate purposes.

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