Loan week, October 22-28

A roundup of the latest syndicated loan market news.

Australia

Sydney Airport Finance successfully secured a A$1.1 billion multi-tranche refinancing in mid-October on a club basis via a consortium of eight mandated lead arrangers.

Guaranteed by Sydney Airport Corp, the revolving credit is split into a A$362 million three-year portion, a A$36 million four-year tranche, a A$438 million facility and a A$227 million seven-year loan. The margins for the tranches are 200bp, 210bp, 230bp and 250bp over the BBSW respectively.

Final allocations saw mandated leads Commonwealth Bank of Australia take A$162 million, while Credit Agricole lent A$150 million. Westpac contributed A$145 million and Bank of America Merrill Lynch, BNP Paribas and Royal Bank of Scotland held A$135 million each. J.P. Morgan and Natixis ended up with A$100 million apiece.

Proceeds are to refinance a A$776 million facility signed in November 2008 and MTN notes expiring in 2014.

Hong Kong


Frasers Property (China)’s HK$1.0 billion term loan was sealed on October 22 as a club deal via coordinating arrangers Citic Bank International, DBS Bank, HSBC, Oversea-Chinese Banking Corp (Hong Kong), Standard Chartered Bank  (Hong Kong) and United Overseas Bank.

The three-year term loan is priced at 240bp over Hibor.

Final allocations saw the leads contribute equally to the financing.

Proceeds are to refinance a HK$500 million three-year term loan signed in 2007 and for general working capital purposes.

A $1.5 billion revolving credit for Noble Group has been launched into syndication via a consortium of 19 lenders.

The revolver consists of a $500 million 364-day tranche and a $1.0 billion three-year portion which are priced at 135bp and 195bp over Libor respectively.

The mandated lead arrangers include ABN Amro, ANZ, Bank of America Merrill Lynch, Commerzbank, Credit Agricole, DBS Bank, Goldman Sachs, HSBC, ING Bank, Intesa Sanpaolo, J.P. Morgan, Lloyds Bank, Natixis, Royal Bank of Canada, Royal Bank of Scotland, Societe Generale, Standard Chartered Bank, United Overseas Bank and Rabobank.

Proceeds are to replace a $645 million loan maturing by the end of this year.  The refinancing is targeted to be signed in mid-November.

Shanghai Industrial Holdings is in the market with a HK$5.2 billion dual-tranche financing via bookrunners BNP, Bank of China and HSBC.

The term loan is split equally into a three-year tranche and a five-year portion which offer a margin of 103bp and 117bp over Hibor respectively.

Eight banks have come in as mandated lead arrangers -- Agricultural Bank of China, Bank of East Asia, Bank of Tokyo-Mitsubishi UFJ, Hang Seng Bank, ICBC (Macau), Mizuho Corporate Bank, Sumitomo Mitsui Banking Corp and United Overseas Bank.

Proceeds are to refinance a HK$2.2 billion loan signed in October 2008 and a HK$3.0 billion facility signed in November 2006. Closing is slated by the end of November.

India

A Rs3.7 billion dual-tranche facility for City View Bangalore Properties was signed on October 21 via sole bookrunner and mandated lead arranger SBI Capital Markets.

The term loan is split into a Rs900 million 3.5-year tranche and a Rs2.8 billion 12-year portion that will be repaid in two and 34 quarterly installments respectively.

Final allocations saw participants State Bank of India commit Rs1.4 billion, while Axis Bank contributed Rs1.0 billion. IndusInd Bank, Indian Bank and State Bank of Mysore gave Rs600 million, Rs550 million and Rs150 million respectively.

Proceeds are to part finance a hospitality project in Bangalore, India.

Himadri Chemicals and Industries’ $34 million dual-tranche facility has been inked via sole bookrunner Yes Bank and sole contributor DEG.

The term loan features a $24 million 10-year facility and a $10 million 9.5-year tranche, and will be repaid in 32 quarterly installments following grace periods of two years and 1.5 years respectively.

Proceeds are for expansion purposes.

Sole bookrunner and mandated lead IDBI Bank has secured a Rs1.2 billion nine-year term loan for NuPower Renewables.

The facility will be repaid in 36 quarterly installments following a nine-month grace period.

Final allocations saw the lead pledge Rs700 million, while participant Punjab National Bank gave Rs485 million.

Proceeds are for acquisition and project finance purposes.

Indonesia


Bumitama Gunajaya Agro successfully obtained a $135 million five-year term loan last on October 21 via bookrunners and mandated lead arrangers DBS Bank and HSBC.

The loan is guaranteed by Hati Prima Agro, Karya Bakti Agro Sejahtera, Masuba Citra Mandiri, Rohul Sawit Industri and Windu Nabatindo Lestari.

Syndication saw DBS Bank take $40 million, while HSBC lent $30 million. Bank Permata gave $25 million, while Bank Ekonomi Raharja and Bank Rabobank International Indonesia held $20 million apiece.

Proceeds are for refinancing purposes.

Philippines


Manila Water’s $150 million 10-year term loan was concluded on October 21 via lead arrangers ING Bank (Tokyo).

The loan is under the Overseas Untied Loan Insurance program of Nippon Export and Investment Insurance (NEXI).

Bank of Tokyo-Mitsubishi UFJ, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp participated at lower tiers.

Proceeds are for capital expenditure purposes.

Singapore


Syndication of Overseas Union Enterprise’s $450 million three-year term loan, which was prefunded in late September, was closed on October 22 via sole bookrunner and original mandated lead arranger Standard Chartered Bank. 

The bullet term loan is priced at 230bp over SOR. There is also a S$300 million senior secured bond issue. Mandarin Orchard Hotel and Mandarin Gallery have been pledged as security.

Final allocations saw the sole bookrunner contribute $75 million, while senior mandated lead arranger Maybank (Singapore) contributed $150 million. Mandated lead arrangers Sumitomo Mitsui Banking Corp (Singapore) pledged $100 million and Natixis (Singapore) lent $80 million. Bank of East Asia (Singapore) came in as a lead arranger with a hold of $45 million.

Proceeds are to finance the acquisition of DBS Tower 1 and DBS Tower 2 in Singapore.

Sim Lian (Bishan)’s S$378 million dual-tranche term loan has been sealed via sole bookrunner and mandated lead arranger Oversea-Chinese Banking Corp.

The facility comprises a S$248 million 4.3-year tranche and a $130 million 1.75-year portion.

Syndication saw HSBC and United Overseas Bank join in as participants.

Proceeds are to amend an existing facility signed in August 2007.

Stemcor
obtained a $115 million one-year revolving credit on October 26 via bookrunners ABN Amro, BNP Paribas, DBS Bank, HSBC, ING Bank, Standard Chartered Bank, Societe Generale and United Overseas Bank.

Oversea-Chinese Banking Corp, Rabobank and Raiffeisen Zentralbank Osterreich (RZB) came in as mandated lead arrangers while Union De Banques Arabes Et Francaises joined in as an arranger.

Proceeds are for general corporate purposes and working capital purposes.

Trafigura Beheer
’s $1.1 billion revolving credit and term loan facility was signed last week via a consortium of 10 original mandated lead arrangers and bookrunners. The deal was launched at $850 million and upsized to $1.1 billion following considerable oversubscription from Asian markets.

Guaranteed by Trafigura’s subsidiaries, the debt package is split into an $846 million 364-day revolving credit and a $229 million three-year term loan which offer a margin of 140bp and 205bp over Libor respectively. The revolving credit tranche also features two one-year extension options.

Final allocations saw bookrunners DBS Bank, National Australia Bank, Standard Chartered Bank and Sumitomo Mitsui Banking Corp lend $100 million each, while ANZ, ICBC (London), Oversea-Chinese Banking Corp, United Overseas Bank and Westpac contributed $75 million apiece. Agricultural Bank of China (Singapore) pledged $60 million. Mandated lead arrangers State Bank of India (London) gave $35 million, while Banco do Brasil and Commonwealth Bank of Australia (Singapore) held $30 million each.

In general syndication, lead arrangers Axis Bank (Hong Kong), Bank of Tokyo-Mitsubishi UFJ and Mizuho Corporate Bank took $25 million apiece, while arrangers Bank of Baroda contributed $15 million. Bank of East Asia (Singapore), Chinatrust Commercial Bank (Singapore), Citic Bank International and Union de Banques Arabes Et Francaises – UBAF committed $10 million each, while Bank Negara Indonesia (Singapore) and Bank Negara Indonesia (Tokyo) gave $7 million and $3 million respectively. Bank Mandiri (Singapore) rounded out the syndicate with $5 million.

Proceeds are to refinance a $700 million 364-day revolver signed in 2009, a $225 million portion of a $525 million loan signed in November 2007 and for working capital purposes.

South Korea

Woori Bank’s €200 million dual-tranche term loan was closed on October 25 via mandated lead arrangers and bookrunners BNP Paribas, Chinatrust Commercial Bank, Commerzbank, Landesbank Baden-Wurttemberg (Singapore) and Natixis. The facility was initially launched at €135 million.

The term loan comprises a €149 million one-year tranche and a €51 million two-year portion. The first tranche is priced at 60bp over Euribor, while the second tranche is priced at 85bp over the same rate.

Final allocations saw the leads BNP Paribas and Landesbank Baden-Wurttemberg - LBBW (Singapore) commit €30 million each while Commerzbank took €25 million. Chinatrust Commercial Bank gave €20 million and Natixis came in with €15 million. Bank of China (Seoul) joined in as a mandated lead arranger with €18 million.

Lead arrangers Taipei Fubon Commercial Bank contributed €12 million and UniCredit lent €10 million. Arrangers Bank Sinopac, Hua Nan Commercial Bank (Offshore Banking), Mega International Commercial Bank (Offshore Banking), Oberbank, Raiffeisenlandesbank Niederosterreich-Wien (Offshore Banking), Taiwan Business Bank (Offshore Banking), Shanghai Commercial & Savings Bank (Offshore Banking) and Yuanta Commercial Bank ended up with €5 million apiece.

Proceeds are for general corporate purposes.

Taiwan

China Petrochemical Development Corp’s NT$21.8 billion five-year multi-tranche facility has been signed via joint bookrunners Bank of Taiwan, Chinatrust Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank, Land Bank of Taiwan, Mega International Commercial Bank and Taipei Fubon Commercial Bank.

The two-year extendible facility is split into NT$6.8 billion and NT$2.7 billion term loans, a NT$4.5 billion letter of credit, a NT$4.0 billion revolver and a NT$3.8 billion guarantee facility. The debt features a spread of 80bp over the secondary CP rate, while the guarantee facility is priced at 60bp per annum.

Syndication saw Agricultural Bank of Taiwan, Bank of Kaohsiung, Bank of Panhsin, Chang Hwa Commercial Bank, China Bills Finance Corp, China Development Industrial Bank, Far Eastern International Bank, International Bills Finance Corp, Mega Bills Finance Corp, Shin Kong Commercial Bank, Ta Ching Bills Finance Corp, Taiwan Bills Finance Corp and Taiwan Business Bank join in as managers.

Proceeds are for refinancing an existing NT$20.7 billion loan signed in January 2007, capital expenditure and working capital purposes.

A NT$510 million three-year loan for Falcon Machine Tools has been sealed via mandated lead arrangers China Development Industrial Bank, Hua Nan Commercial Bank, Land Bank of Taiwan and Taiwan Cooperative Bank.

The loan offers a spread of 160bp over the secondary CP rate with an interest rate floor of 2%.

Final allocations saw the leads take NT$100 million apiece, while participants Mega International Commercial Bank and Shanghai Commercial & Savings Bank committed NT$60 million and NT$50 million respectively.

Proceeds are to refinance an existing NT$500 million facility signed in December 2008 and for general corporate purposes.

A $450 million revolving credit facility for Pegatron Corp was signed on October 25 via mandated lead arrangers and bookrunners Bank of Taiwan, Citi, DBS Bank, Land Bank of Taiwan, Taipei Fubon Commercial Bank and Taiwan Cooperative Bank.

The five-year financing is priced over Libor and linked to the net profit margin ratio. If the net profit margin is higher than or equal to 0%, the pricing is 55bp and if the net profit margin is lower than 0%, the spread is 65bp.

Final allocations saw the bookrunners commit $50 million each, while joint arrangers Chang Hwa Commercial Bank and Shanghai Commercial & Savings Bank contributed $30 million apiece. Participants Hua Nan Commercial Bank and Mizuho Corporate Bank gave $20 million each, while Bank of Tokyo-Mitsubishi UFJ, Cathay United Bank, Chinatrust Commercial Bank, E Sun Commercial Bank and Taiwan Business Bank rounded up the group with $10 million apiece.

Proceeds are for working capital and capital expenditure purposes.

Waterland Securities secured a NT$3.0 billion three-year revolving credit on October 25 via joint bookrunners Agricultural Bank of Taiwan, Bank of Taiwan, Far Eastern International Bank, First Commercial Bank, Land Bank of Taiwan and Taiwan Business Bank. The deal was upsized from NT$2.5 billion.

The revolver is priced at 75bp over the secondary CP rate.

Bank of Taiwan pledged NT$500 million, while Agricultural Bank of Taiwan, Far Eastern International Bank, First Commercial Bank, Land Bank of Taiwan and Taiwan Business Bank lent NT$400 million each. Participants Chang Hwa Commercial Bank and Shin Kong Commercial Bank held NT$300 million and NT$200 million respectively.

Proceeds are for working capital purposes.

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