Loan week, November 2-8

A roundup of the latest syndicated loan market news.

ABC Learning CentresÆ A$1.62 billion three-tranche debt package was launched into general syndication with a bank presentation held in Sydney on November 7 via lead arrangers ANZ, Commonwealth Bank of Australia, National Australia and Westpac.

The three bullet loan comprises a A$1.5 billion revolving cash advance facility, a A$60 million letter of credit facility and a A$60 million portion. The two A$60 million portions will not be syndicated with Westpac solely funding one portion and jointly providing the latter with Commonwealth Bank of Australia.

The loan may be drawn in Australian dollars, US dollars, Euro, Sterling and Canadian dollars.

Banks have until November 27 to respond. Proceeds are to refinance an existing facility signed in June 2007.

Senior syndication of Carlyle Group and National HireÆs A$2.26 billion leveraged buy-out for the acquisition of Coates Hire is still progressing. The mandated lead arrangers are ABN AMRO (Australia Branch), ANZ, Calyon (Australia), Mizuho Corporate Bank, Sumitomo Mitsui Banking Corp and Westpac Banking Corp.

The six year facility is split into a A$2.025 billion term loan, a A$175 million capital expenditure portion and a A$60 million revolving working capital tranche.

The information memorandum was released yesterday (November 8) with bank presentations slated for Monday (November 12) in Sydney then in Hong Kong the day after. Senior syndication is targeted to close on November 28.

ComputershareÆs $600 million dual tranche fundraising has been signed on a club basis via ANZ, Bank of America, National Australia Bank and Royal Bank of Scotland.

The bullet deal is split into a $160 million one year financing and a $440 million three year credit.

Final allocations saw the lead arrangers providing $150 million each.

A$150 million revolver has been inked on a club basis for Macmahon Holdings via ANZ, Caterpillar Australia Finance and HSBC with each holding A$50 million.

Macquarie GroupÆs A$8 billion multi-tranche financing is closing this week, with allocations being finalised soon. ABN AMRO, ANZ, Barclays Capital Commonwealth Bank of Australia, Dresdner Kleinwort, HSBC, JP Morgan, Merrill Lynch, National Australia Bank, Royal Bank of Australia and Westpac are the mandated lead arrangers.

The facility comprises a A$1.6 billion 364-day credit, a A$2.4 billion three year revolver and a $4 billion three year term loan.

The loan is reported to be oversubscribed, and is expected to be signed next week.

ASE Assembly & Test (Shanghai)Æs $190 million five year term loan has been launched recently into general syndication via mandated lead arrangers DBS Bank and HSBC Bank.

The financing features a margin of 90bp over Libor and an average life of four years. Advanced Semiconductor Engineering (ASE) (Taipei) is the parent company.

Fees to the market are on three levels. Coordinating arrangers contributing $20 million and above receive 25bp flat, arrangers committing between $11 million and $19 million earn 15bp and senior managers taking between $5 million and $10 million get 10bp.

Proceeds are to refinance an existing debt facility, and provide for capital expenditure and general corporate requirements. The closing date is scheduled for mid-December.

A $135 million three year fundraising for China Yurun Food Group was completed last Friday (November 2) via sole mandated lead and bookrunner DBS Bank. The facility was oversubscribed and upsized from $100 million due to an overwhelming response from the market.

The loan pays a margin of 65bp over Libor with an average life of two years.

Syndication saw the bookrunner holding $19 million. Coming in as coordinating lead arrangers were China Construction Bank (Hong Kong Branch) with $19 million and Industrial & Commercial Bank of China (Asia) and Sumitomo Mitsui Banking Corp contributing $17 million apiece. Mizuho Corporate Bank (Hong Kong Branch) and Rabobank (Hong Kong Branch) held $13 million each.

Lead arranger Bank of Tokyo-Mitsubishi UFJ (Hong Kong Branch) took $9 million with arranger Citic Ka Wah Bank providing $5.5 million. Five other banks completed the syndicate contributing $4.5 million apiece û Cathay United Bank (Hong Kong Branch), China Construction Bank (Asia), Hang Seng Bank, United Overseas Bank (Chengdu Branch) and Wing Hang Bank.

Proceeds are for working capital and general corporate purposes.

Hong Kong

Kingboard Chemical HoldingsÆ HK$4 billion five year dual tranche loan is still in syndication and is being led by mandated lead arrangers and bookrunners Citi, HSBC and Standard Chartered Bank.

The facility is split equally into a term loan and a revolver, both featuring a margin of 48bp over Hibor and a grace period of three years.

Syndication is slated to close towards the end of the month.

A HK$480 million four year financing for Man Yue International HoldingsÆ has been completed via sole lead arranger Standard Chartered. The debt package closed heavily oversubscribed and was upsized from HK$300 million.

Final allocations saw the lead arranger commit HK$68 million while co-arranger Bank of Tokyo-Mitsubishi UFJ contributed HK$45 million. Citic Ka Wah Bank, DBS Bank (Hong Kong), Mizuho Corporate Bank, Oversea-Chinese Banking Corp and United Overseas Bank took HK$38 million apiece.

Lead managers China Construction Bank and KBC Bank (Hong Kong) each held HK$28.5 million.

Joining the facility as managers with holds of HK$25 million each were Bangkok Bank, Chang Hwa Commercial Bank, Industrial & Commercial Bank of China (Asia) and Maybank (Hong Kong) while Bank Sinopac ended up with HK$20 million.

The funds are to refinance a HK$250 million dual tranche financing signed in October 2005.

New World China Finance (BVI)Æs HK$2.7 billion five year credit has been inked via bookrunners HSBC and Industrial & Commercial Bank of China (Asia). A total of 14 banks joined in syndication.

Joining the syndicate as arrangers were Agricultural Bank of China and Oversea-Chinese Banking Corp while Bank of Communications, China Construction Bank, Chong Hing Bank, Nanyang Commercial Bank, Scotiabank (Hong Kong) and Tai Fung Bank joined as co-arrangers. Bank of China (Macau), Bank of Tokyo-Mitsubishi UFJ and Shanghai Commercial Bank participated as senior managers.

Amidst the sub-prime woes that resulted in last nightÆs comments from China and caused the US dollar to fall to a record low, Yanlord Land deftly signed a $200 million dual tranche amortising fundraising on November 7 via mandated lead arrangers ABN AMRO and HSBC.

The three year facility is split into a $120 million credit and an $80 million revolver.

Final allocations saw the mandated leads each holding $25.5 million while co-ordinating arranger DBS Bank took $25 million. Arranger Oversea-Chinese Banking Corp provided $20 million while co-arrangers Aozora Asia Pacific Finance, Bank of China (Hong Kong), Fubon Bank (Hong Kong) and Hang Seng Bank committed $15 million apiece.

Joining as senior managers with holds of $10 million each were Bank of China (Macau), Citic Ka Wah Bank and Industrial & Commercial Bank of China. Managers Cathay United Bank took $8 million while Bank Sinopac lent $6 million.

Bank of Baroda has joined Appollo Health StreetÆs $145 million five year acquisition fundraising at the top level. Bank of India and Barclays Capital are the original mandated lead arrangers while Indian Overseas Bank and State Bank of India have also joined at the top.

The loan comprises a $125 million credit which was funded in August, to finance the acquisition of US-based Zavata, and two $10 million portions.

Three to four banks are processing credit approvals and the deal is slated to close soon.

Bank of India (Jersey)Æs $250 million three year transferable term loan was launched into general syndication on November 7 via a syndicate of 11 banks. Barclays Capital, Bank of Tokyo-Mitsubishi UFJ, Calyon, Citi, DZ Bank, HSBC, Natixis, Raiffeisen Zentralbank Osterreich and Sumitomo Mitsui Banking Corp are the original mandated lead arrangers while Bank Muscat and Commerzbank joined them at the top.

The deal offers a spread of 40bp over Libor.

Banks have been invited on three tiers. Lead arrangers committing $15 million or above receive 45bp in upfront fees for an all-in of 55bp while co-arrangers providing between $10 million and $14.9 million get 36bp for an all-in of 52bp. Senior managers with holds of $5 million to $9.9 million gain 33bp for an all-in of 51bp.

Banks have until November 20 to revert with the signing ceremony slated for November 26.

A $50 million seven year credit package for Bhushan Power & Steel was inked on November 5 via a consortium of 10 banks.

Final allocations saw the leads Axis Bank, Bank of India, Barclays Bank, Deutsche Bank, UCO Bank (Hong Kong) and UCO Bank (Singapore) each commit $5.5 million. Arrangers Allahabad Bank, Bank of Baroda and Canara Bank held $5 million apiece while lead manager Hua Nan Commercial Bank lent $2 million.

A $153 million dual tranche financing for HDFC Bank was completed on Tuesday (November 6) via a syndicate of eight mandated arrangers. The deal was upsized from $100 million.

The loan is split into a $93 million one year portion and a $60 million three year tranche.

Final allocations saw the mandated arrangers DBS Bank contributing $22.5 million and Natixis committing $20 million. DZ Bank provided $16 million while Commerzbank and arranger United Overseas Bank each held $15 million. Bank of America took $14.5 million while Bank of Tokyo-Mitsubishi UFJ and Calyon lent $12.5 million apiece. Bank Muscat and co-arranger Raiffeisen Zantralbank each lent $10 million. Senior Manager Mega International Commercial Bank ended up with a hold of $5 million.

Proceeds are for general corporate purposes. Signing took place in Singapore.

Bank of Nova Scotia has joined in general syndication for Jindal Poly FilmsÆ $40 million yen-equivalent seven year fundraising, led by sole lead arranger and bookrunner ABN AMRO.

The facility pays a spread of 100bp over Libor. A greenshoe of $20 million can be exercised if required.

The targeted close date has been extended by a week.

Reliance Telecom InfrastructureÆs $500 million six year amortising facility was inked on a club basis on November 2 via a consortium of 12 banks.

Joining the syndicate with commitments of $41.67 million each were ABN AMRO, Barclays Capital, DBS Bank, Dexia Bank, HSBC, ING Bank, Intesa Sanpaolo, Mizuho Corporate Bank, Royal Bank of Scotland, Standard Chartered Bank, Sumitomo Mitsui Banking Corp and WestLB.

Proceeds are to meet capital expenditure requirements.

Varun ShippingÆs $48 million 10 year term loan has been closed as on a club basis via mandated leads BNP Paribas, DBS Bank and ICICI Bank.

The credit features a spread of 145bp over Libor and a put-option to the lenders at the end of seven years.

ICICI Bank contributed $18 million while BNP Paribas and DBS Bank held $15 million apiece.

Proceeds are to support the acquisition of a VLGC (very large gas carrier) ship. Signing is slated for today or early next week.

Sole lead Standard Chartered has closed a $150 million five year term loan for Export-Import Bank of Malaysia.

The deal which paid a spread of 20bp over Libor, saw commitments from Standard Chartered, ING Bank, Mizuho Corporate Bank, and Zurcher Kantonalbank.

Syndication of Nam Fatt CorpÆs $50 million five year credit is slated to close next week (November 15) via sole mandated lead ABN AMRO.

The fundraising features a margin of 225bp over Libor and an average life of 3.5 years.

So far, three banks have joined in syndication û Bank Mandiri, Bank of East Asia and First Gulf Bank.

Proceeds are for working capital purposes.

Allocations have been finalized for Petroliam NasionalÆs Ç950 million dual-tranche fundraising via sole lead Dresdner Kleinwort. The facility was well-received and was increased from Ç800 million.

Final allocations saw Bank of Tokyo-Mitsubishi UFJ and Intesa Sanpaolo commit Ç150 million each. Joining the syndicate with holds of Ç100 million apiece were Dresdner Kleinwort, BNP Paribas, Calyon, CIMB Bank, ING and Oversea-Chinese Banking Corp. United Overseas Bank ended up with Ç50 million.

South Korea

Doosan InfracoreÆs $3.9 billion multi-tranche leveraged buy-out facility was closed on Tuesday (November 6) via mandated lead arrangers Korea Export-Import Bank, Korea Development Bank, Industrial Bank of Korea, Shinhan Bank and Woori Bank. The original sole mandated arranger and bookrunner was Korea Development Bank.

Certain terms and conditions were revised which decreased the loan amount from $4 billion. This landmark transaction saw the largest-ever LBO syndicated in South Korea and has gained overwhelming credibility as it was launched at the time of the sub-prime credit crunch. Another milestone was also achieved with the debut of a Middle Eastern bank, First Gulf Bank, joining in syndication for a South Korean transaction.

The financing is split into a $3 billion three tranche facility borrowed under a SPV, HoldCo, and a $1 billion dual tranche fundraising borrowed via Doosan Infracore and Doosan Engine.

The $3 billion credit comprises a $300m five year revolver, tranche æAÆ, a $1.2 billion five year bullet loan, tranche æBÆ and a $1.4 billion seven year facility, ætranche CÆ. The deal offers a spread of 235bp over Libor for tranches æAÆ and æBÆ and 305bp over Libor for tranche æCÆ.

The remaining $1 billion loan consists of a $700 million portion and a $300 million tranche both with tenors of seven years and a grace period of three years. Margins are priced at 160bp over Libor for the two tranches.

Final allocations saw the bookrunner committing $1.2 billion with Korea Export-Import Bank taking $700 million. Shinhan Bank and Woori Bank held $500 million apiece and Industrial Bank of Korea took $300 million.

Co-arrangers Doosan Capital and Korea Exchange Bank provided $150 million each. Hana Bank, Korea Development Bank Capital and Kookmin Bank contributed $100 million apiece. Completing the syndicate were First Gulf Bank and HSBC taking $50 million each.

Proceeds are to support the acquisition of the construction equipment unit, Bobcat, from Ingersoll-Rand. Signing is scheduled to take place today (November 9).

A consortium of 15 relationship banks has been mandated for Hana BankÆs $300 million one year financing. The club-style deal includes Barclays Capital, BayernLB, BNP Paribas, Calyon, Citi, DBS Bank, DZ Bank, Fortis, HSBC, ING, Landesbank Baden-Wuerttemberg, Oversea-Chinese Banking Corp, Standard Chartered Bank, Sumitomo Mitsui Banking Corp and Wachovia Bank.

Signing is slated for the end of November.

Korean Exchange Bank has sent out RFPÆs for its $200 million one year term loan. The response has been well received with more than 10 banks already showing interest. The facility is known to be on a club-style basis.

PF Financial KoreaÆs Ñ14.45 billion two year credit has been closed via mandated lead arrangers ANZ (Hong Kong Branch), DBS Bank (Hong Kong Branch), KBC Bank (Hong Kong Branch), Standard Chartered Bank (Hong Kong Branch) and United Overseas Bank. The first four banks were the original mandated arrangers and bookrunners. The loan was oversubscribed and upsized from Ñ12 billion due to a good market response.

The facility features a margin of 50bp over Yen-Libor and a one year put-option is available after the two year tenor.

Final allocations saw the mandated arrangers ANZ (Hong Kong Branch) and United Overseas Bank committing Ñ2.4 billion apiece. Standard Chartered Bank (Hong Kong Branch) provided Ñ2.3 billion while KBC (Hong Kong Branch) and DBS (Hong Kong Branch) contributed Ñ1.5 billion and Ñ1.15 billion respectively.

Coming in as arrangers were DZ Bank with Ñ2 billion and Aozora holding Ñ1.15 billion. Lead manager Industrial & Commercial Bank of China took Ñ600 million with managers Barclays Capital (Isle of Man Branch) taking Ñ350 million and Banco Bilbao Vizcaya Argentaria (Hong Kong Branch) and Chung Hua Commercial Bank (Offshore Banking) giving Ñ300 million each.

Dragon Steel CorpÆs NT$57 billion 10 year term loan has been mandated to a syndicate of nine banks û Bank of Taiwan, Cathay United Bank, E.Sun Commercial Bank First Commercial Bank, Land Bank of Taiwan, Mega International Commercial Bank, Taipei Fubon Bank, Taiwan Business Bank and Taiwan Cooperative Bank.

The fundraising pays a spread of 40bp over the secondary CP rate, has a grace period of 3.5 years and is secured by the companyÆs factory and machinery.

The deal is due to be launched into general syndication on November 15 when the information memorandum is released as well as a tour of the factory.

Entrust SecuritiesÆ NT$2 billion three year bullet financing was launched into general syndication on November 6 via lead arrangers Cathay United Bank, E Sun Commercial Bank and First Commercial Bank.

The deal offers a spread of 35bp over the secondary CP rate.

So far, invitations have been sent out to Chang Hwa Commercial Bank, Far Eastern International Bank and Agricultural Bank of China. They can join on three levels. Arrangers contributing NT$500 million or over receive 10bp while managers holding between NT$300 million and NT$499 million gain 8bp. Lenders committing NT$100 million to NT$299 million gain 5bp.

The deadline for banks to respond is set for December 7.

Ho Ping Power is tapping the market for a NT$50 billion to NT$55 billion facility. It has sent out a term sheet to Taiwan Power for a proposed construction of a 1400MW Power Plant, and will go ahead with the loan once approved.

Bank of Taiwan, China Development & Industrial Bank, Chinatrust Commercial Bank, Mega International & Commercial Bank and Taipei Fubon Bank are said to be bidding for the mandate which will be decided by the end of January.

A NT$900 million three year note issuance facility for Nien Hsing Textile was signed on November 6 via mandated lead arrangers ABN AMRO, E.Sun Commercial Bank, Mega International Commercial Bank and Taishin International Bank. ABN AMRO was the original sole lead arranger and bookrunner.

The loan pays a margin of 45bp over GTCOMM.

Allocations saw the bookrunner contributing NT$310 million with E.Sun Commercial Bank and Taishin International Bank holding NT$200 million each. Mega International Commercial Bank provided NT$190 million.

Proceeds are for working capital purposes.

China Development Industrial Bank has been mandated for Yieh Phui EnterpriseÆs five year guarantee facility. The exact loan amount has not yet been determined but will be in the range of NT$3 billion to NT$4 billion.

The bullet facility features a margin of 120bp over GTCOMM and is secured by the companyÆs land and plant infrastructure.

It is expected that three to four banks will be invited with two to three levels to be offered in syndication.

Syndication is scheduled to take place in mid-November. Proceeds are for working capital purposes.
¬ Haymarket Media Limited. All rights reserved.

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