Loan week, November 28-December 4

A roundup of the latest syndicated loan market news.

ApacheÆs $350 million financing is close to signing via mandated lead arrangers and bookrunners BNP Paribas and HSBC.

The updated margin for the pre-completion period is now 100bp over Libor, which will increase to 112.5bp if the parentÆs rating falls to or below BBB+. The pricing for the post-completion period is 175bp.

Proceeds are to support two oil discovery projects in Northwest Australia.

A A$750 million three-year term loan for Telstra Corp was completed last week via sole mandated lead arranger Westpac.

Final allocations saw the lead providing A$250 million, while participants National Australia Bank, Commonwealth Bank of Australia and Deutsche Bank lent A$250 million, A$150 million and A$100 million respectively.

Proceeds are for general corporate purposes.


Syndication of East Hope GroupÆs Rmb1 billion three-year amortising facility is still ongoing and is being led by sole bookrunner Calyon. One unnamed Chinese bank has committed to the deal so far with an undisclosed title.

Secured by the off-take contract, the deal pays a spread of 110% of the PBOC rate. Banks committing more than Rmb200 million will get the mandated lead arranger title and a participation fee of 90bp; those committing between Rmb150 million to Rmb190 million will have the lead arranger title and a 75bp fee; commitments of Rmb100 million to Rmb150 million will be rewarded with an arranger title and a 65bp fee; while banks which contribute Rmb50 million to Rmb90 million will get the senior manager title and a 60bp participation fee.

Proceeds are for general corporate purposes. Closing is targeted by the end of the year, depending on the time needed for potential lenders to get credit approvals.

ProLogis secured a Rmb723 million fundraising on December 1 from sole lead arranger Banc of America Securities. Other banks joining at lower levels are ABN AMRO, Bank of China and Sumitomo Mitsui Banking Corp.

The financing comprises a Rmb249 million term loan and a Rmb474 million revolving credit.

Earlier this quarter, Bank of Communications provided a Rmb5 billion line of credit to support the borrowerÆs general corporate needs.

Proceeds of the current deal are to refinance a Rmb721 million transaction which matures in May 2009 and for general corporate purposes.

Hong Kong

A $140 million five-year term loan for CSMC Asia was sealed on a club basis last week via mandated lead arrangers Bank of Tokyo-Mitsubishi UFJ, DBS Bank, Oversea-Chinese Banking Corp and Standard Chartered Bank.

Final allocations saw Bank of Tokyo-Mitsubishi UFJ and DBS Bank commit $50 million apiece, while Oversea-Chinese Banking Corp and Standard Chartered Bank contributed $20 million each.

The deal is guaranteed by China Resources (Holdings) and China Resources Microelectronics. Proceeds are for capital expenditure and general corporate purposes.

Yue Yuen Industrial HoldingsÆ $150 million transferable term loan was completed as a club loan on November 27 by a consortium of seven banks.

Arrangers DBS, Standard Chartered Bank (Hong Kong) and Taipei Fubon Commercial Bank (Hong Kong) each committed $25 million. Bank Sinopac, Taiwan Business Bank (Hong Kong) and Taiwan Cooperative Bank (Hong Kong) provided $20 million apiece, while Chang Hwa Commercial Bank rounded out the group with $15 million.

The self-arranged financing is priced at 95bp over Libor. Proceeds are to refinance existing debt facilities and for working capital purposes.


A $100 million six-month Islamic loan for Krakatau Steel, Indonesia's largest steel company, arranged by sole lead HSBC, has been put on hold since the last week of November.

Proceeds were intended to finance the borrowerÆs import of raw materials such as iron ore and scrap metals. Due to the recent drop in raw material prices, Krakatau's immediate working capital needs have been reduced. Iron ore and scrap metal prices have continued their downward trend and it is also thought that Krakatau, like most other steel manufacturers, have pushed back its orders of raw material to ensure its purchases are not locked-in at high prices in a declining market. As Krakatau's working capital needs have been reduced and deferred, the fundraising exercise is expected to be revived in early 2009, albeit possibly at a smaller size.

PLN (Persero)Æs $262 million 12-year term loan was completed on December 3 by sole bookrunner Barclays Capital. China Development Bank joined at a lower level.

The financing is guaranteed by the Ministry of Finance of Indonesia. Proceeds are to fund a new 2 x 315MW coal fired steam power plant at Rembang.


Cambridge Industrial Trust (CIT)Æs S$385 million three-year term loan refinancing is currently in documentation via mandated lead arranger HSBC.

The fundraising has been well received and oversubscribed but the deal size is not increased as this is a structured, rated asset-based financing where the size is constrained by restrictions imposed by international rating agencies. The latter are expected to rate 85% of the loan facility as "AAA", and the remaining 15% "AA". Signing is expected to take place by the end of 2008 or early next quarter.


A $50 million five-year transaction for SMART Communications was inked on November 27 as a club deal by ABN AMRO, ANZ, Mizuho Corporate Bank and Standard Chartered Bank.

The financing is priced at 180bp over Libor. Proceeds are to meet the borrowerÆs capital expenditure requirements.


TCC Chemical CorpÆs NT$2.6 billion dual tranche debt package was signed last week via Chang Hwa Commercial Bank, Chinatrust Commercial Bank and Mega International Commercial Bank. Each of the leads contributed NT$650 million to the loan except Chang Hwa Commercial Bank, who gave NT$1.3 billion.

The club deal is divided into NT$1.95 billion unsecured and NT$650 million secured term loans. Guaranteed by Taiwan Cement Corp, the financing features a spread of 60bp over the 90-day secondary CP rate and has a 20bp commitment fee if the usage is less than 70% of the total debt amount.

Proceeds are for refinancing and working capital purposes.


PetroVietnam Transportation secured a Ñ17.1 billion equivalent ($175 million) 13-year amortising loan last week from a consortium of four banks.

Calyon, Citi, Fortis and Societe Generale each committed Ñ4.3 billion to the term loan guaranteed by ECA guarantor Nippon Export & Investment Insurance (NEXI).

Proceeds are for trade financing purposes.
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