loan-week-may-28june-4

Loan week, May 28-June 4

A roundup of the latest syndicated loan market news.

Australia

A A$243 million fundraising for Plenary Group has been signed via Bank of Tokyo Mitsubishi UFJ, Commonwealth Bank of Australia, National Australia Bank and Westpac.

The financing comprises a A$220 million two-year construction facility and a A$23 million six-year subordinated debt solely provided by Bank of Tokyo Mitsubishi UFJ. The three Australian banks each committed A$73 million to the senior portion.

The construction tranche currently pays a spread of 190bp over BBSY, while the bilateral facility is priced at 625bp. Both facilities have a commitment fee of 70% of the margin.

Proceeds are to fund the construction and operation of the Bioscience Research Centre at La Trobe University in Australia.

China

Hidili Industry International Development's Rmb1 billion loan was launched into syndication this week via sole mandated lead arranger Calyon.

The three-year term loan pays a spread of 130% of the PBOC rate.

Banks are to revert by July 3. Proceeds are for the acquisition of coal mine reserves and for capital expenditure purposes.

Hong Kong

Lenovo Group's $400 million amendment has been completed via a group of 21 banks. Mandated lead arrangers for the previous facility were ABN AMRO, BNP Paribas, Citi, HSBC, ICBC and Standard Chartered Bank.

Proceeds are to amend the margin and the covenants of a $400 million term loan dated on March 13, 2006.

Noble Group
's $700 million guarantee facility signed in April 2008 was amended on May 29 via mandated lead arrangers ING, Royal Bank of Scotland, Societe Generale and Standard Chartered. The facility was oversubscribed and increased to $800 million.

The size of the two-year facility is $800 million for the first year and $770 million for the second year. The deal features an all-in pricing on a blended utilisation basis of 159.5bp per annum.

Syndication saw Arab Bank, Banco Santander, Bank of America Merrill Lynch, Bank of Tokyo-Mitsubishi UFJ, Citi, Citic Ka Wah Bank, Commerzbank, Commonwealth Bank of Australia, DBS, Deutsche Bank, HSBC, ICICI Bank, KBC, KfW IPEX-Bank, Lloyds TSB Bank and Rabobank join in at lower tiers.

Proceeds are for refinancing and working capital purposes.

India

A Rs1.5 billion 10-year transaction for Continental Hospitals was sealed on May 30 via sole bookrunner Axis Bank.

The lead arranger took Rs500 million, while participants Canara Bank, Bank of India and State Bank of Hyderabad held Rs400 million, Rs300 million and Rs200 million respectively. State Bank of Mysore joined in with a Rs132 million ticket.

Proceeds are to finance the construction of a multi-specialty hospital in Hyderabad.

A Rs12.8 billion 11.4-year financing for Delhi Gurgaon Super Connectivity was sealed last week via sole mandated lead arranger and bookrunner State Bank of India.

The margin is priced at 50bp below SBAR.

Final allocations saw the lead provide Rs3.3 billion, while participant Bank of India gave Rs3 billion. Canara Bank and UCO Bank committed Rs1.8 billion apiece, while Oriental Bank of Commerce held Rs1 billion. State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore and State Bank of Patiala took Rs500 million each.

Proceeds are to support the development of the Delhi-Gurgaon section of the National Highway

A Rs2.5 billion three-year term loan for Delhi International Airport has been inked via sole mandated lead arranger and bookrunner HSBC, with Corporate Bank and Syndicate Bank joining as participants.

Proceeds are for general corporate purposes.

Gujarat Narmada Valley Fertilizers' Rs20 billion nine-year facility was completed last week through sole lead arranger State Bank of India.

Final allocations saw participants Bank of Baroda contributing Rs3.5 billion, while Syndicate Bank and UCO Bank gave Rs3.4 billion each. Dena Bank provided Rs2.4 billion, and Axis Bank and IDBI Bank lent Rs2 billion apiece. Corporation Bank and HDFC Bank rounded off the syndicate, taking Rs1.7 billion each. The lead did not participate in the funding.

Proceeds are for project financing purposes.

New Zealand

Fisher & Paykel Appliances
has secured a NZ$575 million debt package from its existing relationship bank group.

The deal is split into a NZ$290 million multi-currency term loan maturing in April 2012; a NZ$50 million equivalent working capital facility; and a NZ$235 million dual-currency amortising facility maturing in April 2010.

Proceeds are for refinancing purposes.

Singapore

CPG Holdings, CPG Consultants and Downer Group Finance's S$160 million dual-tranche financing has been sealed via original mandated lead arrangers and bookrunners HSBC and Standard Chartered Bank. Sumitomo Mitsui Banking Corp and United Overseas Bank joined as equal status arrangers, while Bank of East Asia and Chang Hwa Commercial Bank came in as a lead arranger and a co-arranger respectively.

The deal is guaranteed by Downer EDI and is equally split into a term loan and a revolving credit. Proceeds are for refinancing and general corporate purposes.

Taiwan

Acer's NT$19.8 billion acquisition facility originally completed in November 2007 was amended in late May via a consortium of 13 coordinating arrangers led by Citi (Taipei). The current outstanding amount of the loan is NT$15.5 billion.

The financing comprises a NT$12.2 billion five-year term loan and a NT$3.3 billion three-year revolving credit. Both are priced at 33bp over the primary CP rate.

The tenor of tranche one has been amended from three to five years, while the tenor of tranche two remains the same. Tranche one will be repaid in four equal semi-annual installments commencing 42 months from the signing date. Under the original terms, the repayment was due to start 18 months after signing.

The mandated leads ANZ (Taipei), Bank of Taiwan, BNP Paribas (Taipei), Calyon (Taipei), Chang Hwa Commercial Bank, Chinatrust Commercial Bank, Citi (Taipei), DBS (Taipei), HSBC (Taipei) Mega International Commercial Bank, Mizuho Corporate Bank (Taipei), Taipei Fubon Commercial Bank and Taiwan Cooperative Bank saw new commitments from participants Bank of Tokyo-Mitsubishi UFJ, Land Bank of Taiwan, Shanghai Commercial & Savings Bank and Taishin International Bank.

Proceeds were to finance the $710 million acquisition of Gateway in 2007, to refinance existing indebtedness of Gateway and its subsidiaries, and to provide for working capital requirements.

Taiwan Cement Corp's NT$16.5 billion fundraising was completed on June 2 via a consortium of 10 bookrunners and mandated lead arrangers led by Mega International Commercial Bank. The facility was oversubscribed and upsized from NT$15 billion. This is the largest domestic syndicated loan facility in Taiwan year-to-date.

The five year debt package is equally split into two term loans of NT$8.25 billion. Secured by land, plant, equipment and right of mining, tranche one offers a spread of 97.5bp over the 90-day secondary CP rate, while the unsecured tranche is priced at 115bp over the same rate. Both tranches feature a commitment fee of 10bp priced on the difference between the actual drawdown and the total facility amount.

Final allocations saw the bookrunners and mandated lead arrangers Bank of Taiwan and Mega International Commercial Bank contribute NT$1.7 billion each, while Bank SinoPac, Calyon, Chinatrust Commercial Bank, Hua Nan Commercial Bank, Land Bank of Taiwan and Taiwan Cooperative Bank committed NT$1.3 billion apiece. Bank of Tokyo-Mitsubishi UFJ and E.Sun Commercial Bank lent NT$860 million each. Meanwhile, participants Cathay United Bank, KBC Bank, Shanghai Commercial & Savings Bank and Taiwan Business Bank gave NT$400 million each and Agricultural Bank of Taiwan, Bank of East Asia, EnTie Commercial Bank, King's Town Bank, Taichung Commercial Bank and Yuanta Commercial Bank joined in with NT$330 million apiece.

Proceeds are to refinance the borrower's existing debt facilities, including a NT$15 billion five-year facility signed in December 2005 and corporate bonds expiring in October; and to provide for working capital requirements.

A NT$550 million financing facility for Taiwan Semiconductor was signed last week via sole bookrunner Taiwan Cooperative Bank.

The two-year guarantee facility features a guarantee fee of 90bp.

Final allocations saw the lead pledge NT$104.5 million, while participants Bank SinoPac, Chang Hwa Commercial Bank, First Commercial Bank, Mega International Commercial Bank, Shanghai Commercial & Savings Bank and Yuanta Commercial Bank committed NT$74.5 million apiece.

Proceeds are to guarantee a convertible bond facility.

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