loan-week-october-18

Loan week, October 1-8

A roundup of the latest syndicated loan market news.

Australia

Goodman Finance Australia Trust's A$438 million revolver has been completed on a club basis via mandated lead arrangers BNP Paribas, Commonwealth Bank of Australia, Eurohypo, HSBC, ING Bank, J.P. Morgan, National Australia Bank, Royal Bank of Scotland and Westpac.

The three-year bullet loan features a three-year tenor and proceeds are to repay existing indebtedness.

China

Hunan Valin Lianyuan Iron & Steel has secured a $62 million transaction via bookrunners Calyon and Societe Generale.

Final allocations saw the bookrunners take $20 million each, while lead arrangers Bank of China and China Construction Bank joined in with $12 million and $10 million respectively.

Proceeds are for general corporate purposes.

Hong Kong

A HK$1.6 billion three-year dual-tranche facility for Goodman HK Finance has been completed on a club basis by a consortium of six mandated lead arrangers.

The fund-raising comprises an HK$824 million term loan and a revolving credit facility of the same size. Standard Chartered Bank committed HK$400 million, Natixis provided HK$300 million, Calyon added HK$270 million and ING Bank joined in with HK$241 million. Oversea-Chinese Banking Corp contributed HK$236 million and CITIC Ka Wah rounded out the group with a hold of HK$200 million.

The margin is 225bp over Hibor and proceeds are for refinancing purposes.

Hong Kong Air Cargo Terminal has successfully secured an HK$800 million three-year club deal from mandated lead arrangers ANZ, Bank of East Asia, Bank of Tokyo-Mitsubishi UFJ, HSBC and Oversea-Chinese Banking Corp.

Proceeds are for working capital purposes.

Indonesia

Adaro Indonesia
's $500 million financing was signed on a club basis on October 2 via mandated lead arrangers ANZ, Bank Mandiri, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Chinatrust Commercial Bank, DBS, HSBC, Oversea-Chinese Banking Corp, Standard Chartered Bank, Sumitomo Mitsui Banking Corp and United Overseas Bank. Despite an overwhelming response with subscriptions of up to $1.5 billion, the borrower did not upsize the debt amount.

Final allocations saw Oversea-Chinese Banking Corp lend $160 million, while DBS and Sumitomo Mitsui Banking Corp contributed $55 million each. Bank of Tokyo-Mitsubishi UFJ, BNP Paribas and United Overseas Bank gave $35 million apiece, and ANZ, Bank Mandiri, Chinatrust Commercial Bank, HSBC and Standard Chartered Bank ended up with $25 million each.

Proceeds are for capital expenditure and general corporate purposes.

Malaysia

A M$600 million multi-tranche debt package for Sunway City has been sealed via mandated lead arrangers HSBC Bank, Malayan Banking, Oversea-Chinese Banking Corp and RHB Bank on a club basis.

The five-year fund-raising consists of M$240 million and M$200 million term loans, as well as a M$160 million revolving credit.

The financing pays a spread of 200bp over the cost of funds. Proceeds from the term loans will be used to repay outstanding commercial paper and existing bank guaranteed bonds, while the revolver is for capital expenditure and working capital purposes.

Singapore

Huan Hsin (BVI)'s $100 million financing was sealed on September 29 through sole bookrunner Oversea-Chinese Banking Corp.

Syndication saw Bangkok Bank, Bank of East Asia, Cathay United Bank, Commerzbank, Krung Thai Bank, Maybank, Mega International Commercial Bank and Sumitomo Mitsui Banking Corp participate at lower tiers.

Proceeds are to refinance existing debt facilities.

Taiwan


A NT$3.6 billion dual-tranche facility for Clevo was signed on October 2 via bookrunners and mandated lead arrangers Land Bank of Taiwan and Taiwan Business Bank. The facility was oversubscribed and upsized from NT$3 billion.

With the chairman acting as the guarantor, the five-year facility is split into a NT$1.4 billion credit facility and a NT$2.2 billion revolver. The loan offers a margin of 85bp over the secondary CP rate and a commitment fee of 10bp.

Final allocations saw the leads lend NT$1 billion each, while participants Chang Hwa Commercial Bank and Chinatrust Commercial Bank joined in with NT$500 million apiece. Hua Nan Commercial Bank and Mega International Commercial Bank came in with NT$300 million each.

Proceeds are for working capital purposes.

Gloria Material Technology Corp
's NT$1.6 billion multi-tranche loan was signed on October 6 via bookrunners and mandated lead arrangers Bank of Taiwan and Taipei Fubon Commercial Bank. The facility was oversubscribed by 38% to NT$2.2 billion.

Secured by land, buildings and machinery, the transaction consists of a NT$630 million three-year guarantee facility and a NT$400 million one-year guarantee facility tranche that both offer a guarantee fee of 100bp per annum. There is also a NT$1.6 billion five-year term loan that is priced at 100bp over Bank of Taiwan's one-year time savings deposit, with a minimum interest rate of 2% after-tax.

Final allocations saw bookrunners Bank of Taiwan commit NT$350 million, while Taipei Fubon Commercial Bank gave NT$250 million. Chang Hwa Commercial Bank, E.Sun Commercial Bank, First Commercial Bank, Mega International Commercial Bank and Taiwan Cooperative Commercial Bank joined as mandated lead arrangers with holds of NT$200 million apiece.

Proceeds are to guarantee the borrower's convertible bond and commercial paper issuance, to refinance a NT$2 billion dual-tranche facility signed in 2005, and for working capital purposes.

Mercuries & Associates has secured a NT$1.4 billion five-year dual-tranche facility via coordinating arrangers Agricultural Bank of Taiwan, Bank of Taiwan, First Commercial bank, Industrial Bank of Taiwan, Shanghai Commercial & Savings Bank and Taiwan Cooperative Commercial Bank. 

The facility comprises a NT$720 million revolving credit that is priced at 80bp over the one-year post office savings rate with a minimum interest rate of 2% after tax, and a NT$720 million note issuance facility with an annual fee of 80bp.

Final allocations saw the leads commit NT$150 million each, while participants Hua Nan Commercial Bank pledged NT$150 million, Bank of Kaohsiung and Mega International Commercial Bank lent NT$100 million apiece and Chang Hwa Commercial Bank took NT$70 million. Taichung Commercial Bank and Yuanta Commercial Bank joined in with NT$60 million each.

Proceeds are to refinance a NT$1.2 billion facility signed in 2005 and for working capital purposes.

Qisda Corp's NT$9.6 billion dual-tranche facility was sealed on October 2 via coordinating arrangers Bank of Taiwan, Chinatrust Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank, Mega International Commercial Bank and Taiwan Cooperative Commercial Bank.

With a two-year extension option, the five-year debt package comprises two term loans of NT$8.6 billion and NT$1 billion each. The facility is priced at 80bp over the primary CP rate during the financial covenant review grace period. When the covenant is reviewed in mid 2011, the margin steps down to 70bp. A minimum interest rate of 2.5% is imposed during the grace period.

Final allocations saw the mandated leads, Bank of Taiwan, Chinatrust Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank, Mega International Commercial Bank and Taiwan Cooperative Commercial Bank, give NT$1.1 billion each. Lead arrangers DBS and Chang Hwa Commercial Bank lent NT$500 million apiece, while E.Sun Commercial Bank pledged NT$300 million.

Lead managers Land Bank of Taiwan and Taiwan Business Bank contributed NT$300 million each, while managers EnTie Commercial Bank and Ta Chong Bank committed NT$200 million apiece. Far Eastern International Bank, Shanghai Commercial & Savings Bank, Sunny Bank and Taiwan Shin Kong Commercial Bank ended up with NT$175 million each.

Proceeds are for refinancing purposes.

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