loan-week-october-1218

Loan week, October 12-18

A roundup of the latest syndicated loan market news.
Australia

A A$400 million dual tranche bullet facility for AWB Commercial Funding has been completed on a club basis via a syndicate of four banks.

The deal comprises a A$280 million one year term loan and a A$120 million two year portion.

Final allocations saw ANZ, Commonwealth Bank of Australia, Rabobank and Westpac each contribute A$100 million.

Olam InternationalÆs A$200 million facility has been closed oversubscribed via mandated leads ANZ, St George Bank and Rabobank. ANZ and Rabobank were acting as the bookrunners. The financing was upsized from A$150 million.

The facility carries a margin of 90bp over BBSY.

Final allocations saw the bookrunners contributing A$50 million apiece with St George Bank holding A$40 million. Coming in as lead arrangers were Commonwealth Bank of Australia and Westpac taking A$30 million each.

Proceeds are to refinance an existing bridge loan.

China

A $1.2 billion LBO facility backing Bain Capital and Huawei TechnologiesÆ proposed acquisition of 3Com Corp is underway. ABN AMRO, Bank of China, Citi, HSBC and UBS have been mandated to arrange an $800 million five year dual tranche LBO financing that will be syndicated in Asia. The rest of the facility will be syndicated in the United States.

The Asian-portion of the loan comprises a $750 million facility and a $50 million credit.

The banks are currently expanding the mandated arranger group and the deal is slated to launch into senior syndication at the end of the month.

An additional $400 million short-term bridge loan will be underwritten by Citi, HSBC and UBS to finance the acquisition.

Chang Chun Chemical (Jiangsu)Æs $76 million dual currency five year term loan has been inked via five mandated lead arrangers û Bank of China, Bank of Tokyo-Mitsubishi UFJ, DBS Bank, ING Bank and KBC Bank. DBS Bank was the original mandated lead arranger and bookrunner.

The loan comprises a $53.3 million tranche, paying a margin of 40bp over Libor and a $22.7 million RMB-equivalent portion featuring a spread of 90% over the PBOC rate. Both tranches feature an average life of four years.

Final allocations saw the bookrunner committing $14 million with the remaining mandated lead arrangers taking $13 million apiece. Coming in as a senior manager was United Overseas Bank providing $10 million.

Proceeds are for general corporate purposes.

Syndication of China National Salt Industry Corp (CNSIC)Æs RMB1 billion three year term loan has closed via sole mandated arranger and bookrunner DBS Bank. The facility was oversubscribed and upsized from RMB700 million due to an enthusiastic market response.

Syndication saw a total of 16 banks joining in û Bank of Dalian, Bank of East Asia, Bank of Tokyo-Mitsubishi UFJ (Beijing Branch), Calyon, China Citic Bank, Hang Seng Bank (Beijing Branch), Intesa Sanpaolo, KBC Bank (Shanghai Branch), Mizuho Corporate Bank (Shanghai Branch), Nanyang Commercial Bank, Oversea-Chinese Banking Corp (Shanghai Branch), Public Bank, Rabobank, Shinhan Bank, Sumitomo Mitsui Banking Corp (Shanghai Branch) and United Overseas Bank (Beijing Branch).

Proceeds are for working capital purposes. Signing is slated to take place by the end of this week.

A $165 million three year amortising credit for Sang Heavy Industry was signed on October 8 via a syndicate of six mandated leads û ABN AMRO, DBS Bank, Export-Import Bank of China (Hunan Branch), KBC Bank, Sumitomo Mitsui Banking Corp (Shanghai Branch) and Swedbank (Shanghai Branch). ABN AMRO was the original mandated lead and bookrunner. The fundraising was upsized from $100 million due to a good response from the market.

The deal has an average life of 2.75 years and pays a margin of 70bp over Libor.

Export-Import Bank of China (Hunan Branch), Sumitomo Mitsui Banking Corp (Shanghai Branch) and Swedbank (Shanghai Branch) contributed $25 million apiece. DBS Bank and KBC Bank committed $20 million each while ABN AMRO held $15 million. Lead managers Bank of Nova Scotia and Mizuho Corporate Bank (China) took $10 million apiece. Rounding off the syndicate were Bank of Tokyo-Mitsubishi UFJ, Public Bank (Shenzhen Branch) and United Overseas Bank (Beijing Branch) holding $5 million each as senior managers.

Funds were to refinance an existing debt facility and for working capital purposes.
Hong Kong

Swire PacificÆs HK$10 billion dual tranche facility has closed this week via a syndicate of 15 banks. Bank of China (Hong Kong), Calyon, HSBC, Standard Chartered and Sumitomo Mitsui Banking Corp led the facility as the original mandated co-ordinating arrangers and bookrunners.

The five year deal is split equally into a term loan and a revolver and pays a spread of 25bp over Hibor.

Joining the facility in senior syndication as equal-status arrangers were Bank of Nova Scotia, Bank of Tokyo-Mitsubishi UFJ, Industrial & Commercial Banking Corp of China (Asia), Mizuho Corporate Bank and Natixis. Agricultural Bank of China and DBS joined as co-ordinating arrangers.

Chong Hing Bank joined as an arranger while Banco Bilbao Vizcaya Argentaria and Tai Fung Bank joined the syndicate as co-arrangers.

Allocations are being finalised this week, with the banks scaling back their commitments due to a good market response.

The signing ceremony will be held on October 24.

India

Syndication of Axis BankÆs $150 million dual tranche financing is about to close via mandated lead arrangers Calyon, DBS Bank, Intesa Sanpaolo, Natixis and Standard Chartered.

The loan comprises a $100 million 364 day term loan and a $50 million three year financing which features a $50 million greenshoe option.

Commitments are being finalised and the signing ceremony will be held on October 24 in Singapore.

Varun ShippingÆs $48 million 10 year ship financing via sole bookrunner ICICI Bank is slated to close on October 25.

So far, BNP Paribas has joined as an equal-status arranger with a hold of $20 million and DBS has committed $15 million.

The funds are to finance the purchase of a VLGC carrier.

A $35 million yen-equivalent credit for first time borrower Yes Bank, has been signed via Bank Muscat, Natixis and Standard Chartered. The amount was downsized from $50 million at the borrowerÆs request.

The loan features a tenor of 370 days and a spread of 23bp over Libor.

Macau

Melco PBLÆs $1.75 billion dual tranche financing has been launched into general syndication via mandated lead arrangers and bookrunners ANZ, Banc of America Securities, Barclays Capital, Citi, Deutsche Bank and UBS.

The loan is split into a $1.5 billion seven year term loan with an average life of 5.5 years and a $250 million five year revolver. The facility is syndicated in US and HK dollars and the margin is priced at 275bp over Libor.

So far, four banks have joined in as equal-status coordinating lead arrangers in senior syndication - Banco Nacional Ultramarino, Bank of China (Macau Branch), China Construction Bank and First Commercial Bank. A further nine banks are said to have also committed.

Fees to the market are on four levels. Senior lead managers contributing $75 million and above receive 75bp flat, lead arrangers committing between $50 million and $74 million earn 60bp, arrangers providing $25 million to $49 million hold 45bp and senior managers taking between $15 million and $24 million get 35bp.

Proceeds are to fund the City of Dreams project and for general corporate purposes. Banks have until November 2 to revert.

New Zealand

Prosafe Production ServicesÆ NZ$120 million five year amortising loan has been completed on a club basis via ANZ and DVB Bank, providing NZ$60 million each.

The funds are for refinancing existing debt.

South Korea

Doosan InfracoreÆs $3.9 billion multi-tranche leveraged buy-out facility is still in general syndication led by sole mandated arranger and bookrunner Korea Development Bank.

The financing has been decreased from the original $4 billion amount and several terms and conditions have been revised due to demands from lenders.

Syndication has so far received verbal commitments from at least five banks and is scheduled to close early next week.

Proceeds are to support the acquisition of the construction equipment unit, Bobcat, from Ingersoll-Rand.

Hana Bank has sent out RFPs to help arrange a $300 million one year credit. The deadline for banks to respond is October 23.

New Songdo City DevelopmentÆs KRW2.5 trillion multi-tranche fundraising is still in the syndication process via sole mandated lead arranger and bookrunner Shinhan Bank.

The loan is split into a KRW1 trillion term loan æAÆ, a KRW0.75 trillion term loan æBÆ, a KRW0.67 trillion term loan æCÆ and a KRW0.08 trillion revolver. All the tranches carry a tenor of seven years and margins are priced at 170bp over the three-month CD rate.

A total of 15 commitments have so far been received û seven of those from domestic banks, five from life insurance companies and three coming from security institutions. At present, the deal is awaiting approvals from the Korean Government to determine if the security institutions are permissible. Allocations are yet to be finalised and syndication is scheduled to close once approved.

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 and land acquisitions will be funded via term loan æCÆ.

Taiwan

Taishin International SecuritiesÆ NT$3.15 billion three year revolver has been inked via a consortium of 10 banks.

Final allocations saw six mandated lead arrangers provide NT$400 million each - Agricultural Bank of Taiwan, Industrial Bank of Taiwan, Taishin International Bank, Taiwan Business Bank, Taiwan Cooperative Bank and Yuanta Commercial Bank.

Lead managers Bank of Taiwan, Cathay United Bank and Land Bank of Taiwan held NT$200 million apiece while lender Shin Kong Commercial Bank ended up with NT$150 million.

Syndication of Walsin Lihwa CorpÆs NT$5.5 billion fundraising is ongoing via lead arrangers Calyon, Chinatrust Commercial Bank, Fubon Commercial Bank, HSBC, ING Bank and Standard Chartered.

Banks have been invited on three tiers. Banks providing NT$800 million or more get the mandated lead arranger title and 12bp in upfront fees. Co-arrangers lending between NT$500 million and NT$800 million gain 9bp while participants taking between NT$300 million and NT$500 million get 6bp.

The deal pays a spread of 35bp over the secondary CP rate.

Banks have until the end of October to revert and the signing ceremony is expected to be held in late November.

A NT$900 million three year credit facility for Zig Sheng Industrial was completed on October 12 via sole lead arranger and bookrunner Taishin International Bank. The loan was upsized from NT$800 million.

The deal carries a margin of 65bp over the secondary CP rate and a commitment fee of 15bp.

Allocations saw the bookrunner and lead manager Far Eastern International Bank holding NT$150 million each. Coming in as participants were Bank of Kaohsiung, Hua Nan Commercial Bank, Land Bank of Taiwan, Shanghai Commercial and Savings Bank, Shin Kong Commercial Bank and Taichung Commercial Bank providing NT$100 million apiece.

Thailand

Syndication of Canada OilÆs SPV, Finspaceæs Ç260 million five year fundraising is still ongoing via sole lead Merrill Lynch.

The loan pays a spread of 380bp over Euribor.

Banks have been invited on three levels. Mandated lead arrangers providing $25 million or more receive 150bp in management fees while arrangers committing between $15 million and $24 million gain 125bp. Lead managers lending between $7.5 million and $14 million get 100bp.

Six of Canada Oil GroupÆs subsidiaries are acting as guarantors.

The funds are to support capital expenditure requirements, refinancing existing debt and for general corporate purposes.

Banks are expected to revert by early November.

Vietnam

A $200 million eight year financing for Vietnam National Shipping Lines (Vinalines) is looking to launch into general syndication very soon via sole mandated arranger Credit Suisse. A few relationship banks have been shown the details and the structure of the loan which are currently being finalised.

The deal pays a spread of 135bp over Libor with an average life of 4.5 years.

Three ticket levels are offered in general syndication. Mandated lead arrangers holding $25 million and above gain 50bp, lead arrangers parting with $15 million to $24 million earn 30bp and arrangers contributing $5 million to $14 million take 20bp.

Proceeds are to fund the purchase of shipping vessels.
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