Loan week, November 21-27

A roundup of the latest syndicated loan market news.

BHP Billiton withdrew its bid for Rio Tinto on November 25. Syndication of a $55 billion debt package to support the bid was launched in February via bookrunners Barclays Capital, BNP Paribas, Banco Santander, Citigroup, Goldman Sachs, HSBC and UBS.

Proceeds were to be used partly for the ú73.7 billion acquisition of Rio Tinto, partly to refinance a $40 billion debt facility.


Cofco Capital Corp's $150 million three-year letter of credit has been signed via mandated lead arrangers Bank of America, Bank of Tokyo-Mitsubishi UFJ, Fifth-Third Bank, ING bank and Rabobank.

The leads each committed $18 million, except for Bank of Tokyo-Mitsubishi UFJ which contributed $17 million. Arrangers Intesa Sanpaolo (Shanghai branch), Natixis (Shanghai branch), NordLB (Shanghai branch) and Sumitomo Mitsui Banking Corp lent $13 million apiece. Lead managers Banca Monte de Paschi and BBVA gave $4.5 million each.

Proceeds are to refinance a $150 million facility signed in October 2005.

A Rmb980 million dual tranche facility for International Far Eastern Leasing was upsized from Rmb800 million and signed on November 24 via mandated lead arrangers Bank of China, Bank of Shanghai and Sumitomo Mitsui Banking Corp. Bank of East Asia (China) joined as a lead arranger and Wing Hang Bank (China) came in as co-arranger.

The debt package is divided equally between a one-year revolving credit and a three-year term loan which is guaranteed by Sinochem Corp.

Proceeds are to be used for equipment purchases and working capital purposes.

Hong Kong

Warid TelecomÆs $347 million fundraising was signed on November 20 via mandated lead arrangers Royal Bank of Scotland and Standard Chartered Bank.

The debt package is split into three term loans - a $232 million portion, an $80 million tranche and a $35 million credit, each with a seven-year tenor.

Proceeds are for capital expenditure purposes.


A Rs5.8 billion 15-year dual tranche loan for SEW Navayuga Barwani Tollways, an SPV for Khalghat-Borghat Highway PPP project, has been sealed via sole mandated lead arranger State Bank of India.

The deal pays a spread of 0.2% of the loan amount with service tax added. The term loans are split into Rs5.5 billion and Rs300 million portions.

Final allocations saw the mandated lead and participant India Infrastructure Finance take Rs150 million each. Union Bank of India came in with Rs110 million, while State Bank of Mysore ended up with Rs100 million. Andhra Bank and State Bank of Bikaner & Jaipur provided Rs60 million and Rs37 million apiece.

Proceeds are to finance the expansion of an existing two-lane highway in Madhya Pradesh, India.


Samsung Total PetrochemicalÆs $60 million one-year loan-style FRN was signed on November 25 by ANZ and Standard Chartered Bank on a club basis.

The deal is priced at 160bp over Libor and the mandated leads each provided $30 million. Proceeds are for working capital purposes.


Asia MobileÆs $650 million three-and-a-half-year dual currency loan has been inked via original mandated lead arrangers ING, Sumitomo Mitsui banking Corp, Oversea-Chinese Banking Corp and United Overseas Bank. DBS Bank, Fortis Bank, Maybank and Natixis joined the syndication as equal-status arrangers.

The facility comprises a S$681 million portion and an S$85 million term loan. The US dollar tranche is split into an $88 million credit and a $44 million revolver.

Proceeds are for acquisition financing.

The S$16 million five-year credit for GP Industries has been signed via HSBC and Oversea-Chinese Banking Corp on a club basis.

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

A S$250 million fundraising for FCL Peak was funded last week via a consortium of four mandated lead arrangers.

BNP Paribas (Singapore), HSBC, ING Bank (Singapore) and Royal Bank of Scotland (Singapore) contributed equally to the three-year term loan.

Proceeds are to partly refinance an existing S$305 million facility. A further sell-down is expected in late 2008 or early 2009.

A $3 billion divestment of PowerSeraya by Temasek Holdings was cancelled on November 25 due to current market conditions. PowerSeraya was the third and final power plant that Temasek had hoped to privatise.

Temasek successfully privatised Senoko Power and Tuas Power earlier in the year.

Toll (Asia)Æs S$940 million three-year revolver has been upsized from S$900 million and signed via bookrunners BNP Paribas and Standard Chartered Bank.

Final allocations saw BNP Paribas, DBS, Oversea-Chinese Banking Corp, Standard Chartered Bank, UOB and Westpac committing S$120 million apiece. Citi provided S$100 million while Commonwealth Bank of Australia and DnB NOR Bank each gave S$60 million.

Guaranteed by parent company Toll Holdings, the deal features a margin of 130bp over Libor if the debt-to-Ebitda ratio is less than two times. The pricing will increase to 140bp if the ratio is two to 2.5 times and to 150bp if it is between 2.5 times and three times. The margin will be 165bp over Libor if the ratio creeps above three times.

Proceeds are for general corporate purposes.


Coxen Precise IndustrialÆs NT$1.5 billion five-year dual tranche facility is in syndication via mandated lead arranger Hua Nan Commercial Bank.

The financing is split into a NT$1 billion term loan and a NT$500 million bullet facility. Guaranteed by the borrowerÆs chairman, the deal pays a spread of 85bp over the secondary CP rate and has a 20bp commitment fee if the total usage of the term loan is less than 70% and that of the bullet loan is less than 50%.

Proceeds are for general corporate purposes. The facility is expected to close in January 2009.

A NT$5 billion 16.5-year term loan has been launched for Kaohsiung Arena Development via mandated lead arrangers First Commercial Bank and Taiwan Cooperative Bank.

The deal is priced at 95bp over Taiwan Cooperative BankÆs fixed savings rate and has a commitment fee of 15bp. Banks joining with more than NT$600 million get an upfront fee of 10bp, while banks participating with NT$400 million to NT$599 million earn 5bp. Banks committing between NT$200 million and NT$399 million receive 3bp.

Proceeds are to refinance a NT$4.3 billion 18-year loan signed in July 2005 and for working capital purposes. Banks will have until early 2009 to revert.

A NT$4.2 billion seven-year dual tranche facility for Zhong Yu Investment & Chi Li Er Investment has been signed via mandated lead arrangers EnTie Commercial Bank, Mega International Commercial Bank, Ta Chong Bank and Taiwan Cooperative Bank.

The deal is split into a NT$3.8 billion term loan and a NT$350 million revolver paying a spread of 120bp over Chunghwa PostÆs one-year and two-year floating rates respectively.

Allocations saw Mega International Commercial Bank contribute NT$975 million, while Ta Chong Bank and Taiwan Cooperative Bank both held NT$490 million. EnTie Commercial Bank committed NT$403 million. Participants Agricultural Bank of Taiwan, Chinatrust Bank, Hua Nan Bank, Jih Sun International Bank, Panshin Bank, Shanghai Commercial Bank, Taichung Bank, Taipei Fubon Bank and Taiwan Business Bank took NT$200 million apiece.

Proceeds are for the acquisition of cable TV companies.
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