Loan week, October 19-25

A roundup of the latest syndicated loan market news.

Challenger Infrastructure FundÆs A$540 million dual tranche bullet loan has been inked via lead banks Commonwealth Bank of Australia, Bank of Scotland and Royal Bank of Scotland.

The deal comprises a A$290 million three year credit and a A$250 million nine month term loan.

Final allocations saw Commonwealth Bank of Australia providing A$193.33 million, Bank of Scotland holding A$181.67 million and Royal Bank of Scotland taking A$165 million.

Mandated lead arrangers and bookrunners ANZ, Deutsche Bank and JP Morgan have launched a A$1.25 billion one year financing for ING Industrial Fund into general syndication.

The funds are to refinance existing debt.

A roadshow was held yesterday (October 25) in Sydney. Banks have until November 16 to respond.

Leads National Australia Bank and Westpac closed a A$1 billion five year fundraising for Telstra Corp on October 22.

The full syndicate is undisclosed at present. The signing ceremony will be held today.


A $111.429 million multi-tranche financing for Radiant Opto-Electronics has been inked via a consortium of eight banks. BNP Paribas and Citi are the original mandated arrangers.

The five year loan comprises a $68.572 million Suzhou tranche, a $22.857 million Nanjing tranche and a $20 million Guangzhou tranche.

Final allocations saw the leads Bank of China provide $25 million while BNP Paribas and Citi held $17.47 million each. Agricultural Bank of China took $16.5 million and KBC Bank committed $12 million. Bank of China (Hong Kong) and Mizuho Corporate Bank ended up with $10 million apiece.

Joining the syndicate as a co-arranger with a hold of $3 million was Industrial & Commercial Bank of China.

Hong Kong

The targeted close for Man Yue InternationalÆs HK$300 million four year term loan has been extended to next week as some banks are still waiting for credit approvals. A site visit was held last week. Standard Chartered is the sole lead arranger and bookrunner.

The facility features a spread of 71.5bp over Hibor. Banks have been invited to join on three levels.
Co-arrangers committing HK$50 million or above get 35bp for an all-in of 86.2bp while lead managers contributing between HK$35 million and HK$49 million receive 29bp for an all-in of 83bp. Managers holding between HK$25 million and HK$34 million gain 23bp for an all-in of 81.2bp.

The funds are to refinance a HK$280 million facility signed in October 2005.

Original mandated co-ordinating arrangers Bank of China (Hong Kong), Calyon, HSBC, Standard Chartered and Sumitomo Mitsui Banking Corp have completed a HK$10 billion dual tranche facility for Swire Pacific. The deal was signed on October 24 with a total of 15 banks joining the syndicate.

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

Final allocations saw the original leads Bank of China (Hong Kong), Calyon, HSBC, Standard Chartered and Sumitomo Mitsui Banking Corp each commit HK$816 million. Equal status arrangers Bank of Nova Scotia, Bank of Tokyo-Mitsubishi UFJ, Industrial & Commercial Bank of China, Mizuho Corporate Bank and Natixis each took HK$750 million.

Co-ordinating arrangers Agricultural Bank of China held HK$670 million while DBS Bank contributed HK$500 million. Chong Hing Bank came in as arranger with a take of HK$400 million.

Rounding off the consortium were co-arrangers Banco Bilbao Vizcaya Argentaria and Tai Fung Bank with holds of HK$300 million apiece.

TrafiguraÆs $400 million multi-tranche financing is still syndicating via original mandated lead arrangers Barclays Capital, BNP Paribas and Mizuho Corporate Bank.

Joining them at the top as equal status arrangers are ANZ, Standard Chartered, Sumitomo Mitsui Banking Corp and United Overseas Bank.

Banks have until November 8 to revert.

ICICI Bank and State Bank of India have been mandated to arrange a $210 million five year amortizing facility for Air India.

Launch of syndication has been delayed as the ECA terms were restructured. The facility is slated to be launched into syndication at the end of the month.

The loan features a margin of 175bp over Libor and quarterly repayments.

Syndication of Amtek AutoÆs $200 million seven year fundraising has been extended till the end of the month. ABN AMRO is leading the deal.

So far, Bank of Taiwan, Hua Nan Commercial Bank and Mega International Commercial Bank have joined the facility as participants. A few Indian banks are processing their credit approvals.

The financing features a $50 million greenshoe. The funds are to refinance an existing facility signed in September 2004.

Larsen & ToubroÆs $200 million dual-tranche credit has closed oversubscribed. The financing will be increased, with the borrower to decide on the final loan amount.

The term loan is split equally, featuring tenors of five and seven years respectively.

The signing ceremony is expected to take place in early November.


Syndication of Petroliam NasionalÆs Ç800 million dual tranche fundraising is still ongoing with good market response. So far, the deal has been oversubscribed and has seen commitments from six banks.

The 364-day loan is split into a Ç650 million credit and a Ç150 million revolver.

The deal is targeted to close early next week.


A S$318.5 million three year construction loan for Kajima-Lehman (Robinson) Development was signed on October 19 on a club basis via Bank of Tokyo-Mitsubishi UFJ, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp.

Final allocations saw Sumitomo Mitsui Banking Corp provide S$107.5 million while Bank of Tokyo-Mitsubishi UFJ and Mizuho Corporate Bank held $105.5 million each.

United Test & AssemblyÆs $775 million LBO financing, the first covenant-lite loan in Asia, was launched into syndication on October 16 via leads ABN AMRO, JP Morgan and Merrill Lynch.

The deal is split into a $625 million seven year term loan B and a $150 million six year revolver.
The loan pays a spread of 312bp over Libor on both tranches.

Syndication is being held in the US and Asia simultaneously. JP Morgan is running the books in the US.

Proceeds are to support Affinity Equity Partners and TPG Capital-led $1.4 billion leveraged buyout of the borrower.

Sole mandated arranger HSBC has completed a $55 million two year revolver for WPG Electronics (South Asia), WPG International (South Asia) and Genuine C&C (South Asia).

Joining the syndicate were co-arrangers DBS Bank and United Overseas Bank. KBC Bank, Oversea-Chinese Banking Corp and RZB Bank joined as participants.


Kunshan Yuansong Electronics TechnologyÆs $36 million three year term loan was signed on a club basis via a group of four banks.

Final allocations saw KBC Bank and Standard Chartered provide $10 million apiece while Bank of Nova Scotia and Oversea-Chinese Banking Corp lent $8 million each.

Valiant InternationalÆs NT$8.08 billion dual tranche LBO fundraising has been completed via leads Chinatrust Commercial Bank, Mega International Commercial Bank and Taishin International Bank. OCM Principal Opportunities and OCM Asia Principal are the sponsors.

The loan comprises a NT$6.667 billion seven year amortizing facility and a NT$1.413 billion five year revolver.

Final allocations saw the leads provide NT$1.524 million each. Co-arranger Far Eastern International Bank committed NT$808 million while lead managers China Development Industrial Bank, Industrial Bank of Taiwan and Yuanta Commercial Bank each contributed NT$500 million.

Rounding off the syndicate with commitments of NT$300 million apiece were managers Bank of Tokyo-Mitsubishi UFJ, Shanghai Commercial & Savings Bank, Taiwan Business Bank and Taiwan Shin Kong Commercial Bank.
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