loan-week-may-2531

Loan Week, May 25-31

A roundup of the latest syndicated loan market news.
China

COSCO Container Lines CorpÆs $100 million three year revolving credit was signed yesterday (May 31) via mandated lead arrangers DnB NOR Bank, Citigroup and Mizuho Corporate Bank. The deal was funded in April 2007.

The facility carries a margin of 28.5bp with a top level all-in of 38bp over Libor.

Syndication was oversubscribed and final allocations saw DnB NOR Bank, Mizuho Corporate Bank and Citigroup contribute $30 million, $20 million and $10 million respectively. Coming in as arrangers were Banca Intesa, Bank of Tokyo-Mitsubishi UFJ, BayernLB and OCBC committing $10 million apiece.

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

ChinaÆs largest LBO facility, a $430 million dual-tranche term loan for Huawei-3Com Technologies, was signed on May 25 via sole mandated arranger Goldman Sachs. 3-Com Corp is the financial sponsor and will use the funds to purchase the remaining 49% stake in the borrower.

The financing is divided into tranche æAÆ, a $230 million three-and-a-half year term loan, priced at 200bp over Libor and tied to a debt-to-Ebitda grid; and tranche æBÆ, a $200 million five-and-a-half year portion with the pricing undisclosed.

Tranche æAÆ was oversubscribed and allocations saw the sole mandated lead commit $10 million. Coming in as lead arrangers in sub-underwriting were ICBC Asia and WestLB contributing $25 million and $45 million respectively. Arrangers Hana Bank (Hong Kong Branch) provided $12.5 million, with Bank of China (Hong Kong Branch), Bank of Nova Scotia and CITIC Ka Wah Bank taking $9.5 million apiece. HSH Nordbank (Hong Kong Branch), Rabobank International (Hong Kong Branch), Skandinaviska Enskilda Banken and Taipei Fubon Commercial Bank also held $9.5 million each. Sole lead manager Bank of East Asia took $7.5 million with senior managers Bank of America (Hong Kong Branch) and Maybank (Hong Kong Branch) committing $5 million each. The remaining commitments of $53.5 million and the allocations for tranche æBÆ were provided by institutional investors which were undisclosed.

Tickets offered in general syndication were on three levels. Arrangers committing $20 million and above gained 60bp flat, lead managers providing $15 million to $19 million received 50bp and senior managers holding $10 million to $14 million earned 40bp.

The facility is secured over shares and assets at offshore levels, as well as shares within the PRC subsidiary.

A $65 million three year dual-tranche loan for Texhong Textile has been launched into syndication via mandated arrangers ABN AMRO and Citigroup.

The facility is split into a $45 million term loan and a $20 million revolving credit.

CITIC Ka Wah Bank and OCBC have joined in syndication as mandated arrangers with syndication targeted to close in early June.

Wacker Chemical Fumed Silica (Zhangjiagang)Æs RMB320 million four year fundraising has been completed via mandated arranger HSBC which took RMB160 million.

Lenders Agriculture Bank of China and Bank of Communications took RMB80 million each.

Wacker Chemie is the guarantor. Proceeds are to finance 44% of the construction and development of the fumed silicon project in Zhangjiagang, Jiangsu Project and for general corporate purposes.

Hong Kong

A $100 million three year revolving credit facility for Agile Property Holdings has been launched into general syndication via HSBC.

The dual-currency deal features an average life of three years and a margin of 150bp over Hibor.

Banks have been invited on three tiers. Arrangers committing $15 million and above receive 35bp over Hibor while co-arrangers lending between $10 million and $14 million get 25bp and senior managers holding between $5 million and $9 million get 15bp.

A site visit in China is scheduled for June 5. Banks have until June 15 to respond.

Beijing Enterprises HoldingsÆ HK$2.1 billion five year term facility was signed on May 29 via mandated arrangers Bank of China, BNP Paribas, Calyon, DBS, Mizuho Corporate Bank and Rabobank.

The deal is still under syndication with banks expected to revert by June 8.

The margin is 28.5bp over Hibor. Proceeds are for general corporate purposes.

A HK$2.1 billion revolving and term credit facility for CITIC Pacific was signed on May 29 as a club transaction via a consortium of seven banks. Mandated lead arrangers were Agricultural Bank of China (Hong Kong Branch), Bank of Communications (Hong Kong Branch), Bank of East Asia, Bank of Tokyo-Mitsubishi UFJ, Calyon, DBS Bank and ICBC (Asia).

The deal pays a spread of 35bp over Hibor with a seven year tenor.

Allocations saw the mandated lead arrangers contribute equal portions of HK$300 million each. Proceeds are for general corporate purposes.

Pacific TextilesÆ HK$600 million three year financing has been launched into general syndication via sole mandated lead arranger Citigroup.

The single-tranche deal pays a margin of 49bp over Libor and has an average life of 1.91 years.

Syndication is set to close on June 8.

Success UnitedÆs HK$1 billion dual-tranche facility was inked on May 25 via mandated arranger Bank of China.

The deal is split equally into a term loan and a revolver and features a spread of 32.5bp over Hibor. Allocations are yet to be finalised.

TOM GroupÆs $230 million one year multicurrency bridge facility has signed via sole mandated arranger DBS Bank.

The bullet loan carries a margin of 100bp over Libor with a commitment fee of 25bp available for a period of 11 months.

DBS Bank allocated $115 million to HSBC, the only other bank that joined as co-arranger committing the same amount.

Proceeds are to finance the payment of shares in TOM online.
India

HavellÆs IndiaÆs Ç30 million five year fundraising has been launched into general syndication via Bank of India, Barclays Capital and State Bank of India.

The loan is part of a four tranche Ç210 million facility to fund the acquisition of European lighting systems company SLI Sylvania. The rest of the syndication took place in Europe and received a good market response.

The facility features an average life of three years and has a spread of 135bp over Euribor.

Banks have until June 15 to respond.

Housing Development Finance CorpÆs $100 million one year financing was closed on May 30 with a hefty oversubscription due to an enthusiastic market response.

Bank of America Securities, BLB Asia Pacific, DBS Bank, DZ Bank, Intesa Sanpaolo, Natixis and Raffeisen Zentralbank Oesterreich are leading the deal.

The deal is not likely to be upsized and allocations have not been finalised.

State Bank of IndiaÆs $300 million dual-tranche financing was signed on May 28 as a club deal via a syndicate of 21 banks.

The mandated arrangers comprise Banca Monte dei Paschi di Siena (Hong Kong Branch), Banco Bilbao Vizcaya Argentaria (Singapore Branch), Banco Popolare di Verona e Novara (London Branch), Bank of America (Taipei Offshore Banking Branch), Bank of China (Hong Kong), Bank of Tokyo-Mitsubishi UFJ (Singapore Branch), Barclays Capital, BNP Paribas, BRED Banque Populaire International, Calyon, Citibank (Bahrain), Credit Industriel et Commercial (Singapore Branch), Danske Bank, DBS Bank, DZ Bank, HSBC, Lehman Brothers Commercial Corp Asia, Mizuho Corporate Bank (Singapore Branch), RZB, Standard Chartered Bank and Svenska Handelsbanken.

The fundraising is split into a $205 million one year tranche æAÆ and a $95 million three year tranche æBÆ, that offer spreads of 8bp and 16bp over Libor respectively.

In tranche æAÆ, Lehman Brothers Commercial Corp Asia committed $25 million, with Calyon, Citibank (Bahrain), Credit Industriel et Commercial (Singapore Branch), HSBC and Standard Chartered Bank contributing $20 million each. Bank of Tokyo-Mitsubishi UFJ and Barclays Capital held $15 million apiece, with Bank of America and Bank of China (Hong Kong) providing $10 million each. Banca Monte dei Paschi di Siena (Hong Kong Branch), Banco Bilbao Vizcaya Argentaria (Singapore Branch), Banco Popolare di Verona e Novara (London Branch), Mizuho Corporate Bank (Singapore Branch), RZB and Svenska Handelsbanken took $5 million apiece.

In tranche æBÆ, Bank of Tokyo-Mitsubishi UFJ (Singapore Branch) provided $30 million with Danske Bank holding $15 million. Contributing $10 million each were DZ Bank, HSBC and Mizuho Corporate Bank (Singapore Branch). Banca Monte dei Paschi di Siena (Hong Kong Branch), BRED Banque Populaire International, Calyon and DBS Bank committed $5 million apiece.

Proceeds are for general corporate purposes.

Malaysia

A $7.1 billion multi-tranche LBO facility for Binariang GSMÆs acquisition of Maxis Communications was signed on May 24 as a club deal, via mandated lead arrangers ABN AMRO, Bank of Tokyo-Mitsubishi UFJ, CIMB Investment Bank, Citigroup, HSBC, Standard Chartered Bank and SMBC. With the exception of SMBC, all the banks are also bookrunners.

The facility is split into a $6 billion equivalent (RM20 billion), tranche æAÆ and a $1.1 billion tranche æBÆ. Both are bridge loans with tenors of one year.

In tranche æAÆ, final allocations saw ABN AMRO committing RM8 billion with SMBC holding RM2.5 billion. CIMB Investment Bank, Citigroup, HSBC and Standard Chartered Bank provided RM2 billion apiece, with Bank of Tokyo-Mitsubishi UFJ contributing RM1.5 billion

Proceeds of tranche æAÆ are to finance the acquisition of Maxis Communications and to refinance existing debt, with tranche æBÆ to be used for capital expenditure purposes.

New Zealand

The leveraged buyout of Yellow Pages from Telecom Corp of New Zealand is expected to be launched into general syndication on June 4.

CCMP Capital and Teachers Private Capital are the financial sponsors. The deal comprises a NZ$1.325 billion six year facility and a NZ$300 million bridge loan.

ABN AMRO, Barclays Capital, Calyon and Deutsche Bank are the mandated arrangers in the facility.

A bank presentation is scheduled for June 12 in Sydney.

Singapore

Asia Mobile HoldingsÆ $1.06 billion dual-tranche facility was completed via a syndicate of 12 banks on May 25.

The facility is split into a $960 million five year term loan tranche æAÆ and a $100 million three year revolver tranche æBÆ that was fully underwritten by the original mandated arrangers United Overseas Bank, Oversea-Chinese Banking Corp, ING Bank and Sumitomo Mitsui Banking Corp.

Tranche æAÆ saw United Overseas Bank committing $278 million while Oversea-Chinese Banking Corp took $131 million. ING Bank held $84 million while Sumitomo Mitsui Banking Corp provided $62 million. BNP Paribas, DBS Bank, Maybank, Natixis, Rabobank and WestLB held $52.5 million each. Calyon committed $50 million while Fortis ended up with $40 million.

The deal features a spread of 63bp over Libor. Proceeds are for general corporate purposes.

A S$165 million dual-tranche facility for CWT has been signed via mandated lead arrangers DBS Bank, Maybank and OCBC.

The financing is divided equally into a S$82.5 million revolver, tranche æAÆ and a
S$82.5 million term loan, tranche æBÆ. Both tranches have a tenor of three years.

Allocations are identical for both tranche æAÆ and for tranche æBÆ which saw the three mandated lead arrangers contribute S$10 million apiece. Lead arrangers Bangkok Bank (Singapore Branch) also committed S$10 million, with Bank of China (Singapore Branch), Bank of Taiwan (Singapore Branch), Bank of Tokyo-Mitsubishi UFJ and Mizuho Corporate Bank providing S$7.5 million each. First Commercial Bank (Singapore Branch) and SMBC (Singapore Branch) held S$5 million apiece as arrangers and coming in as lead manager was Bank of East Asia giving S$2.5 million.

Proceeds of tranche æAÆ are for general corporate purposes and tranche æBÆ to refinance existing debt.

Labroy MarineÆs Ç125 million three year, three months term loan has signed as a club deal via mandated arrangers and bookrunners DBS Bank, OCBC and United Overseas Bank.

The facility saw the bookrunners contributing an equal amount of Ç41.667 million each, with proceeds for general corporate purposes.
Taiwan

C & L LeasingÆs NT$11.2 billion dual-tranche facility has been completed via a consortium of 14 banks.

The facility is divided equally into two 12 year facilities and both feature a spread of 45bp over the 90 day secondary CP rate.

Mandated arrangers Cathay United Bank and Hua Nan Commercial Bank provided NT$1.44 billion each while Taiwan Business Bank took NT$1.29 billion. Mega International Commercial Bank, Taipei Fubon Bank, First Commercial Bank, Central Trust of China, E. Sun Commercial Bank and Land Bank of Taiwan committed NT$860 million apiece.

Lenders Sinopac took NT$650 million while Sunny Bank and Bank of Overseas Chinese held NT$400 million each. Export-Import Bank of China pledged NT$300 million while Shin Kong Commercial Bank ended up with NT$120 million.

The loan is to support the purchase of Boeing B777-300ER aircraft.

A $100 million four year guarantee facility for CTCI Arabia and CTCI Overseas Corp was signed on May 28 via mandated lead arrangers Calyon and Mega International Commercial Bank.

The deal carries a margin of 41bp over Libor.

Syndication saw bookrunners Mega International Commercial Bank provide $37 million and Calyon contribute $15 million. Coming in as managers were Banco Bilbao Vizcaya Argentaria, Central Trust of China, Land Bank of Taiwan and Taipei Fubon Commercial Bank committing $10 million apiece. Shanghai Commercial & Savings Bank held $8 million.

CTCI Corporation is providing a guarantee and proceeds are for debt repayment and general corporate purposes.

A seven year multi-tranche fundraising for Formosa Plastic CorpÆs subsidiaries Formosa Super Absorbent Polymer (Ningbo), Formosa PS (Ningbo) and Formosa Chemicals Industries (Ningbo) has signed via mandated arrangers Calyon, Fortis Bank, ING Bank and Mizuho Bank. Calyon was the sole bookrunner.

Allocations for the $14 million portion for Formosa Super Absorbent Polymer (Ningbo) saw the mandated arrangers commit $3.5 million apiece.

A $16 million facility for Formosa PS (Ningbo) saw the arrangers contribute $4 million each, whilst the banks provided $16.25 million apiece for the $35 million financing for Formosa Chemicals Industries (Ningbo).

All tranches pay a margin of 45bp over Libor. The average life is five years with a grace period of 36 months.

Proceeds are for working capital purposes.

Syndication has been completed for Wintech MicroelectronicsÆ NT$3.3 billion five year financing via mandated arrangers Mega International Commercial Bank and Hua Nan Commercial Ban which took NT$600 million and NT$400 million respectively.

Senior managers Land Bank of Taiwan held NT$300 million while Bank of Taiwan took NT$250 million. Taiwan Cooperative Bank provided NT$230 million while Bank of Kaohsiung, Chang Hwa Commercial Bank, Central Trust of China and Taishin Commercial Bank pledged NT$200 million each.

Managers Shanghai Commercial & Savings Bank contributed NT$120 million while E.Sun Bank, First Commercial Bank, Industrial Bank of Taiwan, Sunny Bank, Taichung Bank and Taiwan Business Bank ended up with NT$100 million each.


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