loan-week-october-1622

Loan week, October 16-22

A roundup of the latest syndicated loan market news.

Australia

TRUenergy's A$350 million financing has been completed via bookrunners and mandated lead arrangers ANZ, Bank of China (Hong Kong), National Australia Bank, Royal Bank of Scotland and Westpac. Banco Bilbao Vizcaya Argentaria is joining at a lower level.

Proceeds are to refinance the A$650 million three-year tranche of a A$1.6 billion deal maturing in August 2009 and to fund greenfield project developments in Australia.

Hong Kong

Fortune Real Estate Investment Trust's HK$3.1 billion transferable debt package was signed last week via bookrunners DBS Bank and Standard Chartered Bank.

The deal comprises a 10-month acquisition facility of HK$480 million, a four-year term loan of up to HK$2.8 billion and a HK$270 million four-year revolving facility. The combined outstanding amount of the HK$480 million and HK$2.8 billion tranches cannot exceed HK$2.8 billion.

The bookrunners each committed HK$700 million, while mandated coordinating arranger Wing Lung Bank offered HK$500 million. Coordinating arrangers Bank of East Asia, CITIC Ka Wah Bank, Dah Sing Bank, First Commercial Bank, Fubon Bank and Hang Seng Bank provided HK$200 million apiece.

The secured and guaranteed financing pays a spread of 200bp over Hibor. Proceeds of the HK$480 million tranche are to fund the acquisition of Metro Town, Caribbean Bazaar and Hampton Loft while the HK$2.8 billion tranche will refinance the former tranche as well as another existing HK$2.3 billion facility. The HK$270 million portion is for general corporate purposes.

Syndication of Lai Sun Development's HK$1 billion fundraising is expected to close this week via coordinating arranger Citi.

With Cheung Sha Wan Plaza pledged as security, the three-year amortising facility offers a spread of 116bp over Hibor.

Proceeds are to refinance a HK$950 million five-year term loan signed in January 2005.

A multi-tranche fundraising for Noble Group is expected to be upsized to $2.4 billion from $1.8 billion via Agricultural Bank of China, Bank of Tokyo-Mitsubishi UFJ, Commerzbank, DBS bank, HSBC, ING Bank, J.P. Morgan, Royal Bank of Scotland, Societe Generale and Standard Chartered Bank.

Twenty percent of the debt is made up of a one-year revolving new loan, 40% is for a one-year extension of an existing facility signed in June 2007, and 40% for a two-year extension of the same facility.

The deal was syndicated at five tiers. Banks joining with $100 million or above are awarded the mandated lead arranger and bookrunner title; lenders coming in with holds of between $75 million and $99 million get the mandated lead arranger title; banks giving $50 million to $74 million take the lead arranger title, those providing $25 million to $49 million will assume the title of arranger; and lenders contributing between $15 million and $24 million are awarded the co-arranger title.

Proceeds are to extend outstanding financing and for general corporate purposes. Signing is expected to take place within the week.

Victory City's HK$800 million term loan was launched into general syndication on October 20 by mandated lead arrangers and bookrunners Bank of Tokyo Mitsubishi UFJ, CITIC Ka Wah Bank, Hang Seng Bank, HSBC and Mizuho Corporate Bank.

Syndication was launched at three levels: banks committing HK$70 million or above, between HK$50 million and HK$59 million, and in the range of HK$40 million and HK$49 million will be awarded the titles of lead arranger, arranger and senior manager respectively.

The all-in pricing ranges from 225bp to 235bp. Proceeds are to refinance an existing debt facility signed in February 2007.

India

A $100 million dual-currency transaction for IDBI Bank has been oversubscribed and is very likely to be upsized to more than $200 million via initial mandated lead arrangers and bookrunners BNP Paribas and Standard Chartered Bank. CITIC Ka Wah Bank joined earlier as an equal status arranger.

The one-year term loan pays a spread of 85bp over Libor or yen Libor, depending on the currency of commitments. Potential lenders are welcome to join at three levels: mandated lead arrangers giving $15 million or above earn an upfront fee of 80bp, while lead arrangers lending $10 million to $14 million get 72.5bp. Arrangers providing $5 million to $9 million take 65bp.

The deal, fully underwritten by the bookrunners, has attracted 14 commitments so far and is expected to close by the end of the week following participation from a Taiwanese lender. Signing is scheduled to take place on October 27.

Proceeds are for general corporate purposes.

HCL Technologies' $300 million five-year term loan has been launched into the market via mandated lead arrangers and bookrunners Standard Chartered Bank and State Bank of India.

The credit facility pays a spread of 390bp over Libor and the repayment schedule will be 16 quarterly installments after a grace period of one-year, which equates to an average life of 3.1 years.

Proceeds are to repay a £400 million bilateral facility supporting the acquisition of Axon in November 2008.

Indonesia

Excelcomindo Pratama's Rp1.6 trillion facility has been sealed via sole bookrunner Bank Negara Indonesia.

The five-year term loan is priced at 375bp over Jibor.

Syndication saw the lead contribute Rp1.5 trillion, while participant CIMB joined in with Rp100 billion.

Proceeds are for capital expenditure purposes.

Singapore

A $540 million dual-tranche transaction for Olam International has been well received and is oversubscribed. The mandated lead arrangers and bookrunners are Bank of Baroda, BNP Paribas, Credit Suisse, DBS Bank, HSBC, ING Bank, J.P. Morgan, Natixis and Standard Chartered Bank.

The term loan, fully underwritten by the leads, is divided into a $324 million three-year financing priced at 225bp over Libor and a $216 million five-year portion that pays 400bp over the same benchmark. The term loans feature grace periods of 12 months and 39 months respectively, and have a blended average life of 2.8 years.

So far, a total of $265 million worth of commitments have been received from 15 banks, and around 20 banks are processing credit approvals. Potential lenders will have until the end of October to revert and signing is slated for early November.

Proceeds are for refinancing, working capital and general corporate purposes.

Taiwan

AGV Products Corp's NT$1.8 billion dual-tranche financing was inked last week via bookrunners and mandated lead arrangers Bank of Taiwan, Hua Nan Commercial Bank, Land Bank of Taiwan, Taiwan Business Bank and Taiwan Cooperative Commercial Bank. The facility was oversubscribed and upsized from NT$1.5 billion.

The five-year debt package comprises a NT$1.2 billion term loan and a NT$600 million revolving credit. Secured by land, factory and stock, both tranches are priced at 130bp over Bank of Taiwan's one-year savings rate.

Final allocations saw the leads contribute NT$300 million each, while participants E.Sun Commercial Bank and Mega International Commercial Bank took NT$200 million and NT$100 million respectively.

Proceeds are to refinance existing debt facilities and for working capital purposes.

Syndication of China Airlines' NT$3 billion guarantee facility is ongoing via sole bookrunner Cathay United Bank.

Featuring a 20% greenshoe option, the five-year transaction pays an annual guarantee fee of 90bp.

Banks have been invited to join on one of two levels in general syndication. Managers committing NT$500 million or above get 10bp, while participants lending NT$200 million to NT$499 million receive 6bp.

Proceeds are to guarantee the issuance of corporate bonds by China Airlines in January 2010. Banks have until late October to revert.

SPVs of Asia Pacific Land - Mega Olympic, Sharp Outlook Holdings and Supersino Holding - have secured a NT$2.6 billion multi-tranche fundraising via coordinating arrangers Chang Hwa Commercial Bank and Taishin International Bank.

The three-year transaction consists of three term loans of NT$1 billion, NT$1.1 billion and NT$449 million each that are priced at 185bp over the secondary CP rate and offer a commitment fee of 20bp.

Final allocations saw the mandated leads commit NT$900 million each, while lead managers Agricultural Bank of Taiwan and Jih Sun International Bank lent NT$300 million apiece. Participant Bank of Panhsin ended up with NT$150 million.

Proceeds are for the purchase of real estate.

Prime View International has completed the third amendment to a NT$6.0 billion facility signed in March 2008 via coordinating arrangers Bank of Taiwan, Chinatrust Commercial Bank, Taipei Fubon Commercial Bank and Taishin International Bank. Chang Hwa Commercial Bank is joining as a participant.

The maturity date of the financing has been extended from October 16, 2009, to December 31, 2009.

Proceeds are for refinancing and acquisition financing purposes.

¬ Haymarket Media Limited. All rights reserved.

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