loan-week-october-1723

Loan week, October 17-23

A roundup of the latest syndicated loan market news.
China

A Rmb1 billion three-year term loan for East Hope Group is in the process of being syndicated via mandated lead arranger Calyon.

The deal pays a margin of 110% of the PBOC rate and will be used by the animal feed and aluminum manufacturer to finance supply purchases.

Banks have been invited on four levels. At the mandated arranger level, banks underwriting Rmb200 million or above receive a participation fee of 90bp. Lead arrangers coming in with Rmb150 million to Rmb190 million gain 75bp, while arrangers contributing Rmb100 million to Rmb150 million get 65bp. Senior managers holding between Rmb50 million and Rmb90 million earn 60bp.

Hong Kong

The $130 million six-year senior loan for the leveraged buyout of GST AutoLeather by Advantage Partners has been signed via mandated lead arrangers GE Commercial Bank and ING Bank.

The debt package is split into a $100 million term loan and a $30 million revolver and is priced at 500bp over Libor.

Final allocations saw the leads each committing $27.5 million. Lead arrangers Development Bank of Japan and Tokyo Star Bank lent $25 million apiece, while Woori Bank provided $20 million. Arranger State Bank of India joined in with $5 million.

There is an additional $42 million mezzanine portion that has not been closed yet as the leads are still looking into selling it down. Pricing on this tranche may be flexed up and is currently paying 14% all-in, comprising a 3% Libor floor, 5% cash, 3% PIK and 3% warrants.

Hongkong International Terminals' HK$5.5 billion three-year term loan was signed as a club deal on October 10 via a consortium of 11 banks.

Mandated lead arrangers Banco Santander, Bank of Tokyo-Mitsubishi UFJ, Banco Bilbao Vizcaya Argentaria, Canadian Imperial Bank of Commerce, HSBC, ING Bank, Natixis, Scotiabank, Standard Chartered, Sumitomo Mitsui Banking Corp and Svenska Handelsbanken lent HK$500 million apiece.

Guaranteed by Hutchison Port Holdings, the deal is priced at 65bp over Hibor. Proceeds are to refinance a HK$5 billion 5-year bullet loan signed in November 2003.

Indonesia

PT Professional Telekomunikasi Indonesia has mandated Bank Central Asia, CIMB Bank, DBS Bank, Overseas Chinese Banking Corp, PT Bank Mandiri and Royal Bank of Scotland to raise a $460 million debt package.

Proceeds are for working capital requirements and to refinance a bridge loan used to fund the HK$3.88 billion acquisition of 3,692 towers from Hutchison Telecom International.

Korea

Syndication of GM Daewoo Auto & Technology's W$1.5 trillion dual-tranche facility has closed via sole mandated lead arranger Korea Development Bank.

The five-year debt package pays a spread of 262bp over the CD rate for the W1.1 trillion revolver and 305bp over for the W400 billion term loan.

Woori Bank has joined as a co-arranger, while Hana Bank, Industrial Bank of Korea, Korea Exchange Bank and the National Agricultural Cooperative Federation have joined in as managers with undisclosed commitments.

Proceeds are for working capital purposes.

Macau

Venetian Macau's $5.25 billion equivalent five-year, multi-tranche debt facility has been unofficially put on hold by global coordinators and bookrunners Banco Nacional Ultramarino, Bank of China, Citi, Goldman Sachs, Standard Chartered Bank, Sumitomo Mitsui Banking Corp and United Overseas Bank due to volatile market conditions. The borrower will look into the deal once market conditions fare better.

Philippines

First Gas Power Corp's $668.8 million debt package is in syndication via mandated lead arrangers Bank of Tokyo-Mitsubishi UFJ, Calyon, ING Bank, KfW, Maybank, SG Asia, Standard Chartered Bank and UniCredit.

The facility comprises two secured term loans of $375.1 million and $249.7 million, with tenors of 13 and 10 years respectively. The first tranche has full political risk insurance (PRI) coverage by a consortium of insurers and pays a spread of 325bp over Libor. The margin for the $249.7 million portion is at 350bp for the first five years, rising to 375bp from the sixth to the seventh year and to 390bp thereafter. There is an additional Hermes-guaranteed tranche of $44 million, which is provided by KfW.

There are two ticket levels offered to the market. Mandated lead arrangers providing $40 million or above receive an upfront fee of 135bp, leading to a top level all-in of 392bp for the uncovered portion and 340.2bp for the covered portion, while lead arrangers lending $20 million to $39 million earn 115bp for an all-in of 388.3bp for the uncovered facility and 337.9bp for the covered facility.

Proceeds are for refinancing purposes and to provide dividends to shareholders.

Singapore

A $245 million debt package for Amtek Engineering and Amtek Precision Technology has been signed via sole mandated lead arranger and bookrunner Standard Chartered Bank. RHB Bank and PT Bank Mandiri (Persero) joined the deal as lead manager and manager, respectively.

The financing comprises a $200 million 62-month term loan and a $45 million 80-month revolving facility.

The interest on the deal is 265bp over Libor for the first year, and will be adjusted according to the leverage ratio thereafter.

Proceeds are to refinance a bilateral bridge facility backing the acquisition of Amtek Engineering that was signed in May 2007 and for working capital purposes.

Unisteel Technology's $280 million leveraged buyout transaction by Kohlberg Kravis Roberts was signed in late September via a consortium of six mandated lead arrangers.

The fundraising comprises a $37 million five-year revolver, a $126.5 million six-year term loan, and a $116.5 million five-year term loan. The margin on the five-year tranches is 300bp over Libor, while the six-year term loan pays a margin of 350bp over Libor

Mandated leads DBS Bank, Deutsche Bank, GE Commercial Bank, ING Bank and Morgan Stanley contributed $36 million apiece, while Calyon provided $25 million. KBC Bank, Natixis and Woori Bank gave $20 million apiece, while arranger Taiwan Business Bank and participant Taishin International Bank committed $10 million and $5 million respectively.

Taiwan

President Tokyo and President Tokyo Auto LeasingÆs NT$1.5 billion three-year dual-tranche facility was signed on October 14 by coordinating arrangers and bookrunners First Commercial Bank and Mega International Commercial Bank.

The debt is divided into a revolver of up to NT$1.5 billion and a guarantee facility of NT$750 million, although the maximum total outstanding amount cannot exceed NT$1.5 billion. The fundraising features a margin of 68bp over the secondary CP rate and has a commitment fee of 10bp.

The leads each contributed NT$375 million while participants Chang Hwa Commercial Bank and Hua Nan Commercial Bank committed NT$300 million apiece. Cathay United Bank and Taiwan Cooperative Bank lent NT$225 million apiece, while E.Sun Commercial Bank, Land Bank of Taiwan and Shanghai Commercial & Savings Bank gave NT$150 million each.

Proceeds are for refinancing and working capital purposes.

Shin Sheng Company's NT$2.6 billion three-year dual-tranche financing has been signed via sole mandated lead arranger Chinatrust Commercial Bank.

The facility comprises two revolvers of NT$2.2 billion and NT$400 million, respectively. The loan pays a spread of 80bp over the primary CP rate.

Final allocations saw Chinatrust Commercial Bank holding NT$390 million, while arrangers Shin Kong Financial Holding and Jih Sun International Bank came in with NT$400 million and NT$390 million respectively. Managers Agricultural Bank of Taiwan and Taiwan Business Bank gave NT$300 million each, while participants Taiwan Cooperative Bank pledged NT$270 million, Far Eastern International Bank and Bank of Taiwan provided NT$200 million apiece and Shanghai Commercial & Savings Bank ended up with NT$150 million.

The funds are to refinance a NT$2.5 billion loan signed in June 2005 and for working capital purposes.

A $22.5 million dual-currency revolving credit for STL Technology was completed on October 15 through sole lead arranger Taishin International Bank.

Final allocations saw the lead arranger committing $10 million while lead manager Mega International Commercial Bank lent $5 million. Participants Cathay United Bank and Taichung Commercial Bank joined in with $3 million each and Shin Kong Commercial Bank rounded up the group with $1.5 million.

The financing features a margin of 120bp over Libor and 110bp over the secondary CP rate. Proceeds are to refinance an existing facility and for working capital purposes.

Thailand

AutoAlliance (Thailand)'s $300 million equivalent five-year term loan has been inked via sole mandated lead arranger and bookrunner Sumitomo Mitsui Banking Corp, with two financial institutions joining at a lower level.

The Thai Baht transaction is to finance the construction of an automobile plant in Thailand and for general corporate purposes.

Vietnam

A $150 million six-and-a-half-year transaction for PetroVietnam Drilling Investment is still ongoing in syndication via mandated lead arrangers ABN AMRO, ANZ and HSBC.

The deal pays a spread of 300bp over Libor and features an average life of four years. PetroVietnam is acting as the guarantor.

Syndication has seen two undisclosed banks joining in as mandated lead arranger and arranger, providing commitments of $15 million and $10 million respectively.

Proceeds will be used to finance a jack-up rig and to refinance a short-term facility used for the rig.
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