Loan week, November 6-12

A roundup of the latest syndicated loan market news.


Myer Holdings has successfully secured a A$625 million three-year loan on a club basis via mandated lead arrangers ANZ, Commonwealth Bank of Australia, Mizuho Corporate Bank, National Australia Bank, Sumitomo Mitsui Banking Corp (Sydney) and Westpac.

The deal is split into a A$425 million term loan and a A$200 million revolver that both feature a margin of 275bp over BBSY.

Proceeds are to refinance a facility supporting the NewBridge Capital-led leveraged buyout of Myer Group in August 2006, to fund the expenses associated with the intial public offering, and for general corporate purposes.


A Rmb200 million three-year loan for Binhai Tuanbo New Town (Tianjin) Holding has been sealed via global coordinator Morgan Stanley, with Hana Bank (China) acting as the sole lender.

The deal is priced at 105% of the PBOC rate and features a mechanism to allow more banks to join in the syndication.

Proceeds are for general corporate purposes.

A Rmb1.3 billion financing for Yinjiang River Highway Project was inked on November 7 via lead arrangers Agricultural Bank of China and Bank of Communications.

In addition to the leads, the nine-year debt saw participation from Bank of China, China Citic Bank, China Construction Bank and Shanghai Pudong Development Bank.

Proceeds are for the construction of the Yinjiang River highway project in Taizhou, China.

Hong Kong

Cheerjoy Development's HK$3 billion two-year term loan has been completed recently via mandated leads Bank of China (Hong Kong), DBS Bank and HSBC.

Proceeds are to refinance a HK$3 billion term loan signed in March 2006.


A Rs9.5 billion 10-year project financing for S Tel was completed on November 6 via sole bookrunner IDBI Bank.

The lead provided Rs1.7 billion and lender Canara Bank took Rs1.6 billion. Central Bank of India, Punjab National Bank, State Bank of India and Union Bank of India lent Rs1.3 billion each, while Allahabad Bank and Bank of Baroda ended up with Rs600 million apiece.

Proceeds are to finance the development of the six GSM telephone "C" circles in Himachal Pradesh, Bihar, Orissa, Assam and Jammu & Kashmir, India.

Tata Teleservices' $255 million 10-year term loan was inked in early November via sole bookrunner Royal Bank of Scotland.

Supported by Finnvera and Finnish Export Credit, syndication saw ANZ, Credit Suisse and NordLB join as mandated lead arrangers.

Proceeds are to finance the purchase of equipment.


Sumitomo Chemical's ¥21 billion 364-day multi-currency revolver was signed on November 9 via sole bookrunner and mandated lead arranger Citigroup.

Syndication saw HSBC, Societe Generale, Calyon, Standard Chartered and Royal Bank of Scotland join at lower tiers.

Proceeds are for general corporate purposes.


Venetian Orient, a wholly-owned subsidiary of Las Vegas Sands Corp, is in the market with a $1.75 billion multi-currency project financing via joint global coordinators Barclays, BNP Paribas, Citi, Goldman Sachs and UBS. A total of $1.45 billion has been underwritten by the five leads.

Priced at 450bp over Hibor or Libor, the five-year financing comprises a $750 million term loan, a $750 million delayed draw-down term loan and a $250 million revolving credit facility.

Sands China will provide an unconditional, unsecured payment and performance guarantee to ensure the completion of phases one and two of parcels five and six of the Cotai Strip in Macau.

Proceeds are to restart the development and construction of parcels five and six on the Cotai Strip in Macau. Senior syndication is expected to close by the end of November.


A $110 million seven-year project financing for Malaysia Offshore Mobile Production (Labuan) has been completed as a club deal via mandated lead arrangers ABN AMRO, ANZ, ING Bank, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp.

Proceeds are for the development of two mobile offshore production units (MOPUs) located offshore Sarawak, Malaysia.


Lion Power Holding's S$2.4 billion refinancing facility was sealed as a club deal on November 12 via a consortium of 15 mandated lead arrangers.

The five-year transaction consists of two term loans of S$1.8 billion and S$425 million each, as well as a S$150 million working capital facility. The facility features pricing ranging from 250bp to 325bp over SOR. There is also a S$300 million-equivalent mezzanine tranche provided by Development Bank of Japan.

Lenders in the original acquisition financing - ANZ, Bank of Tokyo-Mitsubishi UFJ, DBS Bank, KBC Bank, Mizuho Corporate Bank, Natixis, Oversea-Chinese Banking Corp, Royal Bank of Scotland and Sumitomo Trust & Banking Corp -  together with seven new lenders BNP Paribas, Calyon, ING Bank, National Australia Bank, Societe Generale and Sumitomo Mitsui Banking Corp participated in the two term loan tranches, while only Bank of Tokyo-Mitsubishi UFJ, DBS Bank and Oversea-Chinese Banking Corp committed to the working capital facility.

Proceeds are to refinance the S$2.9 billion facility for the acquisition of Senoko Power from Temasek Holdings in Singapore. The acquisition was funded in September 2008.


Innolux Display's NT$48 billion mega transaction is expected to sign on Tuesday (November 17) via a consortium of 14 coordinating arrangers led by Mega International Commercial Bank. The deal was oversubscribed and upsized from NT$35 billion.

The five-year debt package comprises two term loans of NT$17 billion and NT$31 billion each. Both tranches feature a margin of 70bp over the 90-day or 180-day secondary CP rate and a commitment fee of 15bp. There is an after-tax interest rate floor of 1.58% effective in the first 12 months after the drawdown date.

Final allocations saw bookrunners Mega International Commercial Bank commit NT$4.3 billion, while Taiwan Cooperative Commercial Bank took NT$4.26 billion. Taipei Fubon Commercial Bank gave NT$3.9 billion and First Commercial Bank, Hua Nan Commercial Bank and Land Bank of Taiwan lent NT$3.4 billion apiece. Bank Sinopac, Cathay United Bank, Chang Hwa Commercial Bank, Chinatrust Commercial Bank, DBS Bank, E.Sun Commercial Bank, Taishin International Bank and Taiwan Business Bank came in with NT$2.6 billion each.  

Co-arrangers China Development Industrial Bank and Ta Chong Bank pledged NT$1.7 billion each and participants Shanghai Commercial & Savings Bank contributed NT$510 million. Agricultural Bank of Taiwan committed NT$430 million, while Industrial Bank of Taiwan ended up with NT$350 million.

Proceeds are for working capital and capital expenditure purposes.

A NT$2 billion financing for Lighthouse Technology Corp was sealed last week via eight bookrunners and mandated lead arrangers, with First Commercial Bank acting as the facility agent. The deal was oversubscribed and upsized from NT$1.5 billion.

The five-year term loan offers a spread of 60bp over the 90-day primary CP rate. There is a reference rate floor of 1.35% and a two-year extension option for the transaction.

Final allocations saw First Commercial Bank take NT$250 million, while leads Bank of Taiwan, Cathay United Bank, Industrial Bank of Taiwan, Land Bank of Taiwan, Mega International Commercial Bank, Taipei Fubon Commercial Bank and Taiwan Cooperative Commercial Bank joined in with NT$200 million each. Senior managers Chang Hwa Commercial Bank, E.Sun Commercial Bank and Hua Nan Commercial Bank came in with NT$100 million apiece and manager Yuanta Commercial Bank pledged NT$50 million.

Proceeds are for capital expenditure purposes.

Nanya Technology Corp's NT$18 billion fundraising was completed on November 9 via eight coordinating arrangers led by Bank of Taiwan and Mega International Commercial Bank. The deal was oversubscribed by more than 30% and upsized from NT$15 billion.

Secured by factory and machinery, the five-year term loan is priced at 110bp over the 90-day or 180-day secondary CP rate which features a pre-tax interest rate floor of 1.9% and a commitment fee of 10bp. 

Final allocations saw Bank of Taiwan lend NT$2.3 billion, while Mega International Commercial Bank took NT$2.2 billion, DBS Bank NT$2 billion, and First Commercial Bank NT$1.9 billion. Chinatrust Commercial Bank, E.Sun Commercial Bank, Taiwan Business Bank and Taiwan Cooperative Commercial Bank joined at the top with holds of NT$1.4 billion each.

Co-arrangers Chang Hwa Commercial Bank and Hua Nan Commercial Bank contributed NT$900 million each, while managers Ta Chong Bank pledged NT$700 million. Land Bank of Taiwan, Taishin International Bank and Taichung Commercial Bank ended up with NT$500 million apiece.

Proceeds are for the purchase of machinery and equipment.

A NT$7 billion loan for Wintek Corp has been launched into syndication via mandated lead arranger Bank of Taiwan.

Pricing of the five-year term loan is linked to the borrower's net profit margin over the 90-day primary CP rate as follows - if the margin is less than 0%, the spread is 78bp; if the ratio is between 0% and 5%, the pricing steps down to 74bp and if the margin is higher than 5%, the pricing is further lowered to 70bp. There is a floor of 1.2% for the benchmark and a 25% greenshoe option for the facility. A commitment fee of 15bp kicks in if less than 80% of the facility is utilised.

Banks have been invited to join on one of four levels in syndication. Bookrunners and mandated lead arrangers taking NT$1 billion or above earn 35bp, while co-arrangers joining with NT$500 million to NT$1 billion receive 15bp. Lead managers giving NT$300 million to NT$500 million get 10bp and managers committing NT$200 million to NT$300 million gain 6bp.

Proceeds are to take out an existing bridge facility provided by Bank of Taiwan. Closing is slated for December 4.

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