Loan week, November 30-December 6

A roundup of the latest syndicated loan market news.

An A$770 million three-year guarantee facility for Bilfinger Berger was finally signed last week (November 29) via mandated lead arrangers and bookrunners ANZ and Citi. The deal was upsized from A$600 million due to an enthusiastic market response.

Final allocations saw the bookrunners contributing A$110 million apiece. Coming in as lead mangers with holds of A$75 million each were ABN AMRO, BayernLB, BNP Paribas, Deutsche Bank, Landesbank Baden-Wuerttemberg and Royal Bank of Scotland. Rounding off the syndicate were HSBC and WestLB providing A$50 million apiece.

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

Syndication of Linfox AustraliaÆs A$600 million dual tranche financing is still ongoing via mandated leads ANZ and Westpac. The deal was funded on November 29.

The loan comprises an A$400 million three-year bullet facility and an A$200 million three-year amortising loan. ANZ and Westpac have underwritten A$242.5 million each while arranger HSBC underwrote A$115 million. Banks have until December 12 to respond.


ASE Assembly & Test (Shanghai)Æs $190 million five-year term loan has so far received two verbal commitments and is being led by mandated lead arrangers and bookrunners 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 to provide for capital expenditure and general corporate requirements. The closing date is scheduled for the end of December.

A Rmb300 million three-year fundraising for Chailease International Finance Corp was launched into syndication last Thursday (November 29) via sole lead Mizuho Corporate Bank. A roadshow is scheduled to be held later this month in Shanghai.

After a long wait, syndication of a $750 million five-year facility for Hynix û ST Semiconductor (Wuxi) has been closed via mandated leads and bookrunners China Development Bank and Korea Development Bank.

The fundraising pays a spread of 140bp over Libor, has a one-year grace period and carries an average life of 3.5 years.

Final allocations saw China Development Bank committing $235 million while Korea Development Bank held $150 million. Bank of China came in with $120 million while Agricultural Bank of China and China Construction Bank provided $100 million apiece as participants. Completing the syndicate were China Everbright Bank and Chinese Mercantile Bank with holds of $30 million and $15 million respectively.

Signing is slated to take place on December 20. Proceeds of the loan are to support the construction of the second phase of a wafer plant project based in Wuxi, China.

A Rmb1.06 billion equivalent dual tranche credit for TCC Guigang Cement Corp is still in syndication via mandated lead arrangers and bookrunners BNP Paribas, Calyon, Standard Chartered Bank and Oversea-Chinese Banking Corp. Bank of China has since joined in as an equal-status lead arranger.

The loan is split into a Rmb700 million five-year portion, which can be syndicated in US dollars and is priced at 31bp over Libor, and a Rmb360 million three-year revolver priced at 90% over the PBOC rate. The two tranches have a two-year extension option.

Proceeds are to support the construction of the second phase cement plant. The targeted closing date is towards the end of the month.
Hong Kong

Hon Kwok Land TreasuryÆs HK$280 million three-year fundraising has been completed via a syndicate of eight banks on a club basis.

Final allocations saw Bank of East Asia, Citic Ka Wah Bank and Standard Chartered committing HK$40 million each while HSBC and Shanghai Commercial & Savings Bank took HK$35 million apiece. Bank of Communications, DBS Bank and Hang Seng Bank joined the syndicate with holds of HK$30 million each.

A HK$4 billion five-year dual tranche debt package for Kingboard Chemical was signed on December 4 via original mandated lead arrangers Citi, HSBC and Standard Chartered. The loan is split equally into two HK$2 billion tranches which feature a term loan and revolver respectively. Both tranches pay a spread of 48bp over Libor.

Final allocations saw the leads providing HK$510 million each while co-ordinating arrangers CCB International Finance and Sumitomo Mitsui Banking Corp contributed HK$400 million each. Citic Ka Wah Bank and Bank of Tokyo-Mitsubishi UFJ committed HK$350 million apiece and Mizuho Corporate Bank took HK$300 million.

Senior managers Scotiabank (Hong Kong) held HK$150 million while First Commercial Bank (Hong Kong) provided HK$120 million. Joining with holds of HK$100 million each were Cathay United Bank, E Sun Commercial Bank, Maybank and Tai Fung Bank.


Amtek AutoÆs $200 million seven-year fundraising is scheduled to be signed on Monday (December 10) via lead arrangers ABN AMRO, Calyon, DBS Bank, HSBC, ICICI Bank, ING Bank, Mizuho Corporate Bank and State Bank of India. ABN AMRO was the original mandated lead arranger and bookrunner.

So far, commitments have been received from Bank of Taiwan, Hua Nan Commercial Bank, Mega International Commercial Bank and Shanghai Commercial & Savings Bank. Allocations are currently being finalised.


Melco PBL Entertainment (Macau)Æs $1.75 billion seven-year dual tranche financing was inked on December 4 via a consortium of 33 banks.

The deal is split between a $1.5 billion credit and a $250 million revolver. An initial $1.5 billion term loan that was slated to be syndicated in the US was scrapped due to the restructuring of the facility.

Final allocations saw the original co-ordinating arrangers ANZ, Bank of America Securities Asia, Barclays, Citi, Deutsche Bank and UBS provide $102 million each while Banco Nacional Ultramarino, Bank of China, China Construction Bank and First Commercial Bank provided $100 million apiece.

Senior lead arrangers Royal Bank of Scotland held $75 million while WestLB took $65 million.

Lead arrangers Commonwealth Bank of Australia contributed $51 million while Banco Commercial Portugues, Calyon, Commerzbank, Landsbanki and National Australia Bank each took $50 million.

Arrangers Bank of Nova Scotia held $35 million while BOS International (Australia) lent $30 million. Ta Chong Bank contributed $26 million while Banco Comercial de Macau and Banco Espirito Santo do Oriente held $25 million each.

Senior managers Credit Industriel et Commercial took $20 million while China Construction Bank (Macau), AmInvestment Bank, Bank of East Asia, Citic Ka Wah Bank, Industrial Bank of Taiwan, Public Bank (Hong Kong), Shin Kong Financial Holdings, Taishin International Bank and Taiwan Business Bank ended up with $15 million each.

Nam Fatt CorpÆs $50 million five-ear credit has been extended to accommodate pending commitments. ABN AMRO is the sole lead arranger and bookrunner. 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. Oversea Chinese Banking Corp has since passed credit approvals.
Syndication is expected to be wrapped up by the end of the month.

New Zealand

Bank of New Zealand and Commonwealth Bank of Australia have completed a NZ$150 million dual tranche credit on a club basis for South Canterbury Finance.

The loan comprises a NZ$100 million three-year term loan and a NZ$50 million 364-day portion. Allocations saw Bank of New Zealand contributing NZ$100 million while Commonwealth Bank of Australia took NZ$50 million.


A $250 million three-year revolver for International Container Terminal Services (ICTSI) was signed on December 5 via a syndicate of 10 mandated lead arrangers. Calyon, Citi and HSBC were the original mandated leads and bookrunners. The facility was upsized from $200 million.

The financing pays a spread of 80bp over Libor.

Final allocations saw the bookrunners committing $17 million apiece. Coming in as equal-status lead arrangers were ANZ, Bank of China, Citic Ka Wah Bank, First Commercial Bank, Mega International Commercial Bank, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp, each holding $16 million.

Co-arrangers DnB Nor Bank and Sumitomo Mitsui Trust & Banking provided $14.5 million apiece while Bank Negara Indonesia, Bank of Tokyo Mitsubishi UFJ, Maybank and Societe Generale took $10 million each.

Rounding off the syndicate were Cathy United Bank, Chinatrust Commercial Bank and Taiwan Business Bank contributing $5 million apiece, while Shanghai Commercial & Savings Bank gave $3 million.

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


Dubai Drydocks WorldÆs $1.725 billion nine-month bridge financing was completed on November 27 via mandated arrangers and bookrunners DBS Bank and Emirates Bank International.

The bullet loan pays a margin of 80bp over Libor.

Syndication saw BNP Paribas and Lloyds TSB Bank join in as equal-status arrangers. The four banks each held an equal share of $431.3 million. Proceeds are to fund the acquisition of Labroy Marine.

A $261 million multi-tranche LBO-financing supporting the Macquarie Group-led leveraged buyout of Express Offshore Transport and Miclyn Offshore has been launched into senior and general syndication simultaneously. The two borrowers will be merged to form Miclyn Express Offshore. Natixis, United Overseas Bank and WestLB are leading the transaction.

The seven-year credit comprises a $203.5 million acquisition facility, a $50 million capex portion and a $7.5 million revolver. The loan features a spread of 300bp over Libor.

Banks have been invited on four tiers. Mandated lead arrangers lending $40 million and above receive 145bp in upfront fees, while senior lead managers providing between $30 million and $39 million get 115bp. Lead managers lending between $20 million and $29 million gain 100bp while managers holding between $15 million and $19 million receive 85bp.

Senior syndication is expected to close towards the end of December while banks have until January 15 to revert for general syndication.

A S$3.5 billion to S$4 billion debt package for Genting International is slated to launch into syndication early next year. The financing will feature tenors ranging between seven and eight years depending on due diligence of the borrower.

It is rumoured that HSBC, DBS Bank, Oversea-Chinese Banking Corp, Royal Bank of Scotland and Sumitomo Mitsui Banking Corp have won the mandate.

Funds are to finance the development of Resorts World at Sentosa.

Syndication of Marina Bay SandsÆ S$5.44 billion facility has received a good response in syndication due to the attractive margin not often seen in a Singaporean deal. The original mandated lead arrangers and bookrunners were DBS Bank, Goldman Sachs, Oversea Chinese Banking Corp and United Overseas Bank.

The financing comprises S$2 billion and S$2.75 billion term loans, a S$500 million revolver and a S$192 million guarantee facility, with only the term loans being syndicated. The margin is 225bp over SOR.

Prior to launch, the bookrunners expanded the group with nine other banks joining in as equal-status arrangers, including Citi, Lehman Brothers and Merrill Lynch which are also are also acting as bookrunners.

General syndication is scheduled to close by the end of the month. Proceeds are to refinance an existing bridge signed on August 2006 and for working capital purposes.

South Korea

A $100 million eight-year term loan for Hanjin Heavy Industries and Construction Philippines has been closed on a club basis via mandated leads Korea Development Bank and Korea Exchange Bank. The deal was downsized from $200 million and so syndication did not take place.

The facility features a margin of 101bp over Libor and an average life of five years. The mandated leads contributed $50 million each.

Signing is expected to take place next Thursday (December 13) and proceeds are to finance the construction and expansion of the shipyard.

KE OctaviusÆ $317 million dual tranche credit has been inked as a club deal via a consortium of 10 lead arrangers û BNP Paribas, DBS Bank, HSH Nordbank, Industrial & Commercial Bank of China, Industrial Bank of Korea, ING Bank, Kreditanstalt fuer Wiederaufbau, Korea Development Bank, Korea Exchange Bank and National Agricultural Cooperative Federation.

The facility comprises a senior $200 million 10-year term loan and a junior $117 million six-year revolver.

Allocations saw HSH Nordbank and Industrial and Commercial Bank of China holding $40 million apiece. Kreditanstalt fuer Wiederaufbau took $35 million while BNP Paribas and DBS Bank gave $30 million each. The four domestic Korean Banks - Industrial Bank of Korea, Korea Development Bank, Korea Exchange Bank and National Agricultural Cooperative Federation - committed $29.25 million apiece, while ING Bank contributed $25 million.

Proceeds are to support the financing of two Boeing 777-200ER aircraft.

Samsung Heavy IndustriesÆ $300 million three-year and eight-month guarantee facility has been completed via sole mandated lead arranger and bookrunner BNP Paribas.

Syndication saw Banco Bilbao Vizcaya Argentaria (Hong Kong Branch), Industrial & Commercial Bank of China (Seoul Branch) and Korea Exchange Bank joining in as participants. Allocations were not disclosed. The funds are to guarantee a payment made on a shipbuilding order for two container vessels.


A NT$4.6 billion three-year term loan for CPI Asia T-Mart (Taiwan Branch) has been well received with total commitments over NT$5 billion. Taiwan Cooperative Bank is the sole mandated arranger and bookrunner.

The deal is priced at 71bp over the secondary CP rate and has a grace period of 30 months. The commitment fee is 15bp and the loan is secured against the borrowerÆs land and building.

So far, syndication has seen five banks join in as participants û Chang Hwa Commercial Bank, Mega International Commercial Bank, Shin Kong Commercial Bank, Taipei Fubon Bank and Taiwan Business Bank. Bank of Tokyo-Mitsubishi UFJ and Hua Nan Commercial Bank are still awaiting credit approvals.

Syndication is expected to close soon with the signing date slated for December 11. Proceeds are to finance the acquisition of real estate properties in Taipei.

Cathay United Bank has joined as an equal-status arranger on Nanya Technology CorpÆs NT$22 billion five-year financing. Bank of Tokyo-Mitsubishi UFJ, E Sun Commercial Bank, ING Bank, Sumitomo Mitsui Banking Corp, Standard Chartered Bank, Taipei Fubon Commercial Bank and Yuanta Commercial Bank are leading the facility.

The deal carries a margin of 35bp over the secondary CP rate.

Banks have been invited on four levels. Mandated lead arrangers committing NT$2 billion and above receive 18bp in management fees while lead arrangers taking between NT$1.5 billion and NT$1.9 billion gain 12bp. Arrangers lending between NT$1 billion and NT$1.49 billion get 8bp while senior managers holding between NT$500 million and NT$999 million get 5bp.

The targeted deadline is set for the middle of January.
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