Loan week, November 23-29

A roundup of the latest syndicated loan market news.

A A$49.2 million dual tranche fundraising for BB Retail Capital Corp Consortium has been signed on a club basis via mandated lead arrangers ANZ and Bank of Scotland (International), with each taking A$24.6 million.

The deal is split equally into an amortising facility and a bullet portion.

Grain Pool of Western AustraliaÆs A$700 million dual tranche bullet facility has been inked via sole lead arranger ANZ.

The loan comprises a A$300 million three-year bullet and a A$400 million one-year revolver.

Allocations saw ANZ providing A$252 million while lenders Commonwealth Bank of Australia committed A$112 million. Joining as lenders with holds of A$84 million each were BNP Paribas, Rabobank (Australia), Societe Generale (Australia) and Westpac Banking Corp.

Lead arrangers ANZ, Commonwealth Bank of Australia and Westpac have arranged a A$430 million multi-tranche debt package on a club basis for Salmat.

The bullet loan comprises a A$200 million three-year revolver, a A$75 million one-year credit, a A$50 million three-year portion and a A$105 million subordinated debt. Final allocations saw ANZ contributing A$245 million while Commonwealth Bank of Australia took A$95 million. Westpac ended up with A$90 million.


Chailease International Finance Corp has mandated Mizuho Corporate Bank to arrange a Rmb300 million three-year fundraising. The loan is slated to launch into syndication next week.

Sole lead Bank of China (Beijing) has completed two separate loan agreements for China Minmetals Corp and Minmetals Yingkou Medium Plate. Both deals were inked on November 23. The two loans comprise a Rmb1.59 billion three-year credit and a Rmb4.5 billion three-year multi-tranche facility.

Final allocations for the Rmb1.59 billion fundraising saw the lead, together with lenders Agricultural Bank of China and Bank of Communications each provide Rmb530 million.

The Rmb4.5 billion debt package, on the other hand, is split equally into three portions. Allocations saw the same banks committing Rmb1.5 billion apiece. Proceeds are for general corporate purposes.

Laiwu Steel Corp and Laiwu Steel Yinshan CorpÆs $170 million dual tranche three-year financing was signed on November 26 via a syndicate of 11 banks. The facility was well-received and was upsized from $100 million.

The loan is split into a $51 million credit and a $119 million portion featuring spreads of 75bp and 85bp over Libor respectively.

Bookrunners Bank of China (Beijing) provided $30 million while HSBC, Royal Bank of Scotland and arrangers Commerzbank and Wing Hang Bank took $20 million apiece. DBS Bank and Hang Seng Bank (China) joined as arrangers holding $15 million each.

Senior managers Bank of Tokyo-Mitsubishi UFJ and Mizuho Corporate Bank contributed $10 million apiece while managers Public Bank (Hong Kong) and United Overseas Bank each lent $5 million.

Hong Kong

A $200 million five-year credit for Citic Resources was launched into general syndication on November 28 via lead arrangers Mizuho Corporate Bank and China Development Bank. The deal comprises a $150 million term loan and a $50 million portion. Both tranches pay a spread of 58bp over Libor.

Banks have been invited on a single tier. Arrangers with holds of $10 million and above receive an all-in of 62bp. The market response has been good so far and the loan amount is likely to be increased, according to a banker close to the deal. The targeted closing date is set for December 12.

Mandated lead arrangers Citi, HSBC and Standard Chartered closed Kingboard ChemicalÆs HK$4 billion dual tranche debt package on November 28.

The five year fundraising is split evenly and features a spread of 48bp over Hibor. The signing ceremony is expected to take place today (November 30).

A HK$3.5 billion dual tranche fundraising for Western Harbour has been closed via sole lead arranger Bank of China (Hong Kong). The facility comprises a HK$2.7 million six-year credit and an HK$800 million revolver. Both tranches pay a margin of 32bp over Hibor.

A total of eight banks joined the syndicate û Agricultural Bank of China, Bank of Tokyo-Mitsubishi, China Development Bank, Chong Hing Bank, Mizuho Corporate Bank, Shanghai Commercial & Savings Bank, Tai Fung Bank and Wing Lung Bank.

Allocations have yet to be finalised and the signing ceremony is slated to take place shortly.

A total of 15 banks completed syndication of Bank of India (Jersey)Æs $298 million three-year club-style financing on November 27. The facility was increased from $250 million, exercising the $50 million greenshoe that was available.

Final allocations saw the original mandated lead arrangers Bank of Tokyo-Mitsubishi, Barclays Capital, Calyon, DZ Bank, HSBC, Natixis, Raiffeisen Zentralbank Osterreich Aktiengesellscaft and Sumitomo Mitsui Banking Corp each committing $25 million. Bank Muscat and Commerzbank contributed $20 million apiece.

Joining as co-arrangers with holds of $10 million each were Sumitomo Trust & Banking Corp, Taiwan Cooperative Bank (Manila) and WGZ Bank. Export-Import Bank of the Republic of China joined as senior manager lending $3 million.

Essar CommunicationsÆ $3.59 billion 44-month credit was inked on November 23 via a syndicate of 19 banks. BNP Paribas, Citi, Commerzbank and Standard Chartered led the facility.

Final allocations saw Standard Chartered committing $651 million and Commerzbank taking $465 million. BNP Paribas and Citi each held $372 million.

Lead arrangers Banco Bilbao Vizcaya Argentaria, Lloyds TSB Bank and United Overseas Bank contributed $250 million apiece while WestLB took $200 million. Dexia Bank provided $150 million while ING Bank took $125 million. Bank of Ireland came in with a hold of $100 million while Dekabank and Scotiabanc took $75 million each.

Joining with holds of $50 million apiece were DZ Bank, DnB Nor Bank, Intesa Sanpaolo and Korea Exchange Bank. Kookmin Bank lent $30 million, while Chinatrust Commercial Bank ended up with $25 million.

Mizuho Corporate Bank has joined lead arranger ICICI Bank as equal status- arranger on Jubliant OrganosysÆ $50 million five-year financing with a commitment of $10 million. Syndication is expected to close in mid-December.

A ú3.67 billion non-recourse LBO facility for Tata Group supporting the acquisition of Corus Group closed last Friday. ABN AMRO, Calyon, Citi, Deutsche Bank, HSBC, ICICI Bank, ING Bank and State Bank of India are leading the facility.

The loan comprises a ú1.59 billion five-year A-loan, a ú500 million five-year revolver, a ú300 million six-year credit, a ú650 million seven-year term loan and a ú550 million five-year portion.

The deal can be drawn in pounds sterling, US dollars or Euros.

Details of the full syndicate and allocations have not been disclosed. However, in general syndication, Commerzbank took ú50 million while First Gulf Bank joined with a hold ú35 million. National Bank of Dubai took ú20 million while Norinchukin Bank held ú18 million. Mega International Commercial Bank committed ú15 million while Banco Poplar and Indian Bank each took ú10 million. Korea Exchange Bank contributed ú7 million while Nord Capital and State Bank of India lent ú5 million apiece.

Joining with US dollar contributions were Syndicate Bank with $30 million and Chailease Financial lending $5 million.

The signing ceremony is scheduled to be held today (November 30)

Syndication of a $618.9 million five-year recourse facility for United Spirits has been extended to accommodate interest from lenders. The sole mandated arranger was Citi. DBS Bank, ING Bank, State Bank of India and WestLB have already joined as equal-status arrangers. The loan offers a margin of 250bp over Libor.

Signing is slated to take place in mid-December. Proceeds are part of the ú595 million acquisition of Whyte & Mackay, one of the largest Scotch whisky manufacturers globally. The ú355 million non-recourse facility is being led by Bank of Scotland and ICICI Bank.


A $750 million dual tranche fundraising for PT Adaro and Coaltrade International Services is still in syndication via mandated lead arrangers Bank of Tokyo-Mitsubishi UFJ, DBS Bank, Standard Chartered Bank, Sumitomo-Mitsui Banking Corp and United Overseas Bank. DBS Bank, Sumitomo-Mitsui Banking Corp and United Overseas Bank are acting as the bookrunners.

The facility was signed by the five mandated arrangers in early November and the loan will be funded in early December.

The credit is split between a $650 million five-year amortising term loan, with an average life 3.542 years and a $100 million three-year revolver. Margins are priced at 130bp over Libor for the onshore portion and 120bp for the offshore tranche.

Proceeds are to refinance an existing $200 million loan signed in March 2007 and a $400 million high-yield bond.

Melco PBL EntertainmentÆs $1.75 billion dual tranche financing is scheduled to be closed and allocated by today (November 30) via mandated arrangers ANZ, Banc of America Securities Asia, Barclays Capital, Citi, Deutsche Bank and UBS.

Commitments from Banco Nacional Ultramarino, Bank of China (Macau Branch), China Construction Branch and First Commercial Bank have already been received for the title of equal status co-lead arrangers. The deal has been fully subscribed with 22 other commitments, and it is understood a few more banks may still be processing approvals.

The funds are to support the City of Dreams project.


A M$240 million stand-by letter of credit facility for Westin Kuala Lumpur has closed syndication via sole mandated lead and bookrunner DBS Bank. Syndication saw Oversea-Chinese Banking Corp and Public Bank joining in. Allocations and bank titles are yet to be finalised.

The signing date has yet to be decided as a review by the shareholders is required.


San Miguel CorpÆs $700 million one-year bridge financing was inked on November 20 via mandated arrangers and bookrunners ANZ, Citi (Manila Branch), DBS Bank, Maybank and Mizuho Corporate Bank. Final allocations saw the bookrunners contributing $140 million apiece.

Proceeds are to finance an acquisition that was funded by the mandated lead arrangers. The bid eventually fell through and so syndication did not occur; the facility was signed on a club basis.


Syndication of Amphoteric CapitalÆs $80 million three-year credit was signed last week via mandated leads and bookrunners DBS Bank and KBC Bank. The deal was funded in March 2007.

DBS Bank committed $40 million while KBC Bank held $30 million. Coming in as managers were Bank of East Asia (Labuan Branch) and Fubon Bank (Hong Kong Branch) providing $5 million each.

Dubai Drydocks WorldÆs $1.725 billion nine-month bridge financing has been launched into limited syndication via lead arrangers and bookrunners DBS Bank and Emirates Bank. Commitments have already been received from both Asian and European banks.

Proceeds are to fund the acquisition of Labroy Marine.

A $200 million dual tranche credit for Fraser & Neave (F&N) has reached the final stages of syndication with a handful of commitments received so far. The mandated lead arrangers and bookrunners are Bank of Tokyo-Mitsubishi UFJ and DBS Bank.

The loan comprises a $150 million five-year term loan and a $50 million seven- year revolver. Syndication has been extended and is expected to close soon.

A S$473.85 million three-year term loan for Savu Properties, an SPV of Chevron House, has been completed via 10 mandated lead arrangers û Bank of Nova Scotia (Asia), BNP Paribas (Singapore Branch), CIMB Bank, Credit Industriel et Commercial (Singapore Branch), Great Eastern Life Assurance, Oversea-Chinese Banking Corp, Societe Generale, Standard Chartered Bank, Sumitomo-Mitsui Banking Corp and United Oversea Bank. The sole bookrunner and original lead arranger was Standard Chartered Bank. The loan was upsized from S$400 million due to a good market response.

Syndication saw Bank of China (Singapore Branch), Bank of Taiwan (Singapore Branch), Chang Hwa Commercial Bank (Singapore Branch), DZ Bank (Singapore Branch) and RHB Bank (Singapore Branch) joining in as lead arrangers. Allocations were not disclosed.South Korea

A $300 million one-year term facility for Hana Bank was completed on Wednesday (November 28) as a club deal via a consortium of 15 relationship banks. The banks were 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 each holding $20 million.

The loan features a margin of 13bp over Libor and the funds are for general corporate purposes. Proceeds are to refinance an existing $250 million debt facility signed in December 2006.

Another similar transaction, Korea Exchange BankÆs $220 million one year transferable loan, is slated to sign today (November 30), also on a club basis.

The syndicate of 11 mandated lead arrangers are BayernLB, Calyon, Commerzbank, DZ Bank (Hong Kong Branch), HSBC (Seoul Branch), Landesbank Baden-Wurttemberg (Singapore Branch), NordLB (Singapore Branch), Oversea-Chinese Banking Corp, Standard Chartered Bank (Hong Kong Branch), Sumitomo Mitsui Banking Corp and Wachovia Bank.

Final allocations saw the mandated leads underwrite $20 million apiece.

Kyongnam BankÆs $80 million bullet term loan was signed on November 21 via mandated lead arrangers BayernLB, Calyon, Landesbank Baden-Wurttemberg and Oversea-Chinese Banking Corp on a club basis.

The one-year deal pays a spread of 16bp over Libor. Final allocations saw the lead arrangers committing $20 million apiece.

Proceeds are for general corporate purposes.

New Songdo City DevelopmentÆs W2.5 trillion multi-tranche fundraising was signed on November 20. The original mandated sole arranger and bookrunner was Shinhan Bank.

The loan is split into a W1 trillion term loan æAÆ, a W750 billion term loan æBÆ, a W670 billion term loan æCÆ and a W80 billion revolver. All the tranches carry a tenor of seven years and margins are priced at 170bp over the three-month CD rate.

Allocations were not disclosed but syndication saw a total of 12 banks and financial institutions participating. Hana Bank and Industrial Bank of Korea joined in as equal-status mandated arrangers. Coming in as co-arrangers were Chohung Bank, Daegu Bank, Dongbu Insurance, Jeonbuk Bank, Korea Federation of Community Credit Cooperatives, Kumho Life Insurance, LIG Insurance, Pusan Bank, Shinhan Life Insurance and Tong Yang Life Insurance.

Proceeds are to fund a 10-year real estate development project. Term loan æAÆ is to refinance an existing debt facility signed in 2005, term loan æBÆ is to finance the operating and construction costs, while land acquisitions will be funded via term loan æCÆ.


A NT$5.9 billion five-year multi-tranche credit for Shanyuan Construction Corp & Fu Chan High Pile was completed last week (November 23) via mandated lead arrangers and bookrunners Bank of Taiwan, Cathay United Bank, First Commercial Bank and Land Bank of Taiwan.

The deal comprises a NT$2.5 billion term loan æAÆ, paying a margin of 60bp over the two-year post office savings rate, a NT$646 million team loan æBÆ and a NT$2.754 billion term loan æCÆ. Tranches æBÆ and æCÆ pay a spread of 80bp over the two-year post office savings rate.

Allocations saw the bookrunners contributing NT$1.3 billion apiece. Hua Nan Commercial Bank and Taiwan Business Bank took NT$350 million each as participants.

Proceeds of tranche æAÆ are for the purchase of land whilst portions æBÆ and æCÆ are to fund the construction of the residential buildings.

A $700 million equivalent dual-currency fundraising for Taiwan Broadband Communications has received commitments from six banks in senior syndication and is expected to launch into general syndication next week. ABN AMRO, Chinatrust Commercial Bank, Citi Societe Generale (Asia), DBS Bank, KBC Bank, Natixis, Sumitomo Mitsui Banking Corp, Ta Chong Commercial Bank and Taishin International Bank are leading the deal.

The facility comprises a NT$8.15 billion seven-year credit, a NT$4.35 billion eight-year term loan and a NT$2 billion seven-year revolver. All three tranches feature a spread of 190bp over the primary CP rate.

The dollar-denominated tranches are broken down into a $111 million eight-year portion and $147 million seven-year credit featuring a spread of 205bp over Libor.

Roadshows are to be held in early December. The funds are to support the recapitalisation of the Macquarie Investments Australia and Macquarie Media International-led NT$16.2 billion LBO financing signed in May 2006 and for working capital purposes.

Techview InternationalÆs $200 million two-year revolver was inked on Tuesday (November 27) via sole mandated arranger and bookrunner Mega International Commercial Bank.

The loan pays a spread of 28bp over one-, two- or three-month Libor. The commitment fee is 15bp. Final allocations saw the bookrunner providing $170 million while managers Chang Hwa Commercial Bank and Taipei Fubon Commercial Bank held $20 million and $10 million respectively.

Proceeds are for working capital purposes and to refinance existing debt.
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