loan-week-october-39

Loan week, October 3-9

A roundup of the latest syndicated loan market news.
Australia

A A$216 million dual-tranche debt package for Hallett Hill No.2, an SPV for the Hallett 2 wind farm project, has been completed via mandated leads BNP Paribas, National Bank of Australia and Suncorp-Metway as a club deal.

The construction loan pays a spread of 120bp over BBSY pre-completion and then is further split into two tranches - an A$86 million four-year and five-month term loan A and a A$130 million six-year and five-month term loan B. The margin is based on the offtaker's S&P rating, where the first three years pays a spread of 110bp over BBSY with a step-up to 150bp thereafter.

Allocations saw the mandated leads take A$72 million apiece. Proceeds are to finance the development of a 71MW wind farm in Hallett Hill, South Australia.

A $589 million multi-tranche facility for PaperlinX has seen the maturity of one of its tranches extended via mandated leads Commonwealth Bank of Australia and National Australia Bank.

The original facility that was signed in February 2008 was split into three revolvers - a $251 million one-year portion, a $263 million three-year credit and a $75 million five-year tranche. The tenor of the one-year tranche has now been extended by 10 months, maturing in December 2009, while the other tranches remain unchanged.

Allocations for the $251 million portion saw Commonwealth Bank of Australia provide $82 million, while National Australia Bank lent $69 million. Participants Westpac, ANZ and Deutsche Bank took $52 million, $38 million and $10 million respectively.

Telstra Corp's A$435 million three-year fundraising has been signed via sole lead arranger and bookrunner Commonwealth Bank of Australia.

Final allocations saw the bookrunner take A$150 million, while co-arranger Mizuho Corporate Bank held A$75 million. Coming in as lead managers were Banco Santander (Hong Kong branch), with a A$60 million contribution, while Bank of Nova Scotia, Intesa Sanpaolo (Hong Kong branch) and Sumitomo-Mitsui Banking Corp (Sydney branch) provided A$50 million apiece.

Proceeds are for working capital requirements.

Hong Kong

A HK$23.8 billion multi-tranche self-arranged facility for Hong Kong Telecommunications (HKT) was signed on September 29 via a consortium of 20 mandated co-ordinating arrangers on a club basis.

The deal comprises an HK$8.2 billion three-year revolver, a HK$7.8 billion three-year term loan and a HK$7.8 billion five-year tranche. The margins are priced at 155bp over Hibor for the three-year facilities and at 175bp over Hibor for the five-year portion.

Final allocations saw Bank of China (Hong Kong branch), Bank of Tokyo-Mitsubishi UFJ, DBS Bank, HSBC and ICBC (Asia) commit HK$2 billion apiece. Bank of Nova Scotia, BayernLB, BNP Paribas (Hong Kong branch), Calyon, Hang Seng Bank, Royal Bank of Scotland and Standard Chartered Bank contributed HK$1.31 billion each. Bank of America, ING Bank, Mizuho Bank and Sumitomo-Mitsui Banking Corp took HK$775 million apiece. Bank of East Asia, Natixis and Oversea-Chinese Banking Corp held HK$381 million each, while Bank of Communications provided HK$340 million.

Proceeds are to refinance an existing debt facility and for general corporate purposes.

New Zealand

A NZ$500 million three-year term loan for Dominion Foundation Property Fund was sealed last week via sole mandated lead and bookrunner ANZ.

Allocations saw ANZ commit NZ$250 million, while participants ASB Bank and Bank of New Zealand contributed NZ$150 million and NZ$100 million respectively.

The funds are for general corporate purposes.

Singapore

A S$2.9 billion project finance facility for Lion Power Holdings, an SPV owned by a consortium comprising Marubeni Corp, GDF SUEZ of France, Kansai Electric Power, Kyushu Electric Power and Japan Bank of International Corp, was launched into senior syndication on October 3 via mandated arrangers ANZ, Bank of Tokyo-Mitsubishi UFJ, DBS Bank, Dexia, Dresdner Bank, KBC Bank, Royal Bank of Scotland, Mizuho, Natixis and Oversea-Chinese Banking Corp. With the exception of Dexia, all the banks are also acting as bookrunners.

The credit comprises of two 18-month bridge loans - one for the acquisition of Senoko Power and the other for the refurbishment and repowering of the power plant. The margin will step up after each six-month period, starting from 100bp over SOR and increasing first to 120bp and then to 140bp.

Banks have been invited on two levels with those committing S$150 million or above gaining the equal-status mandated arranger title and an upfront fee of 75bp. The facility has already been pre-funded by the arranger group and senior syndication is slated to close in mid-November.

Proceeds are to support the acquisition of Senoko Power from Temasek Holdings, an investment arm of the Singapore Government. This is the second power-generation company to be privatised after the sale of SinoSing Power was completed in early July this year.

Neptune Marine Invest's $290 million dual-tranche financing has been inked via a syndicate of six mandated lead arrangers on a club basis û Bayerische Hypo- und Vereinsbank, DVB Group Merchant Bank (Asia), Fortis Bank, ING Bank (Singapore branch), Oversea-Chinese Banking Corp and United Overseas Bank participated in the deal.

The deal is split into two term loans û a $120 million four-year portion and a $170 million three-year tranche. Allocations are not yet disclosed.

Proceeds are for the refinancing of two drillships, Neptune Discoverer and Neptune Explorer.

Sri Lanka

A $45 million eight-year export credit facility for Mobitel has been completed via sole bookrunner HSBC. Sri Lanka Telecom is acting as the guarantor.

Syndication saw Credit Suisse join in as the only participant. Allocations were not disclosed. The funds are to finance stage four of a GSM expansion project.Taiwan

Boltun Corp's NT$1.5 billion three-year multi-tranche debt package was inked last week via mandated arrangers and bookrunners Chang Hwa Commercial Bank, Chinatrust Commercial Bank, E.Sun Commercial Bank, Hua Nan Commercial Bank, Mega International Commercial Bank and Taipei Fubon Commercial Bank.

The deal comprises a NT$625 million term loan and a NT$625 million revolver, paying a spread of 50bp over the postal SDR, and a NT$250 million note issuance facility priced at 40bp over the postal SDR.

Final syndication saw the bookrunners contributing NT$150 million apiece. Coming in as participants were Bank of Taiwan, China Bills Finance Corp, First Commercial Bank and International Bills Finance Corp holding NT$100 million each. Mega Bills Finance Corp, Shanghai Commercial & Savings Bank, Shin Kong Commercial Bank and Taishin International Bank provided NT$50 million apiece.

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

Boltun Corp subsidiary Boltun BVI Corp's $20 million three-year standby letter of credit was also completed last week on a club basis via the same consortium of lead arrangers û Chang Hwa Commercial Bank, Chinatrust Commercial Bank, E.Sun Commercial Bank, Hua Nan Commercial Bank, Mega International Commercial Bank and Taipei Fubon Commercial Bank.

The margin is priced at 105bp over Libor and there is a commitment fee of 20bp.

Allocations saw Chinatrust Commercial Bank take $3.5 million, while the remaining lead arrangers committed $3.3 million apiece.

Proceeds are for capital expenditure requirements.

Dairen Chemical Corp's NT$3 billion three-year credit was signed on October 8 via a syndicate of seven mandated arrangers as a club deal.

The margin is priced at 47bp over the 30-, 60-, 90-, 120- or 180-day secondary CP rate and there is a commitment fee of 10bp.

Final allocations left First Commercial Bank holding NT$480 million, while Cathay United Bank, Chang Hwa Commercial Bank, E.Sun Commercial Bank, Hua Nan Commercial Bank, Land Bank of Taiwan and Taipei Fubon Commercial Bank committed NT$420 million apiece.

The funds are for working capital purposes.

A NT$10 billion three-year revolver for Pegatron Corp is being well received in syndication via sole lead arranger and bookrunner ABN AMRO.

The loan pays a spread of 60bp over the secondary CP rate and has a two-year extension option. There is also a NT$2 billion greenshoe option which can be exercised. Previously the facility included a US dollar portion, but due to the credit crunch this has now been withdrawn.

Banks have been invited on four tiers, but titles and fees are yet to be disclosed. The top-level requires banks to contribute NT$1.5 billion or above, the second tier comprises commitments of NT$1.2 billion to NT$1.4 billion, the third tier commitments between NT$800 million and NT$1.1 billion and the lowest tier are for banks providing between NT$500 million and NT$800 million.

So far, syndication has received four commitments with a handful of lenders currently processing their credit approvals. Proceeds are for working capital requirements.

President Fair Development's NT$8 billion dual-tranche financing is still in syndication via sole mandated arranger and bookrunner Bank of Taiwan.

The facility comprises a NT$7 billion 10-year term loan and a NT$1 billion five-year revolver, paying a spread of 65bp over the primary CP rate.

Banks are welcome to join as equal-status lead arrangers committing NT$800 million or above for an upfront fee of 27bp. Several banks have already been invited to form an arranger group.

The funds are to refinance existing debt and for working capital purposes.

SDI Corp's NT$1.5 billion five-year dual-tranche loan was sealed on October 7 via sole mandated lead arranger and bookrunner Taishin International Bank.

The deal is split into a NT$1 billion term loan and a NT$500 million revolver with margins of 68bp over the secondary CP rate and a commitment fee of 15bp.

Allocations saw the mandated lead take NT$310 million, while lead managers Bank of Taiwan, DBS Bank, E.Sun Commercial Bank, Hua Nan Commercial Bank and Yuanta Commercial Bank provided NT$150 million apiece. Coming in as managers were Bangkok Bank and Mizuho Corporate Bank with holds of NT$120 million each, while Chinatrust Commercial Bank and Taipei Fubon Commercial Bank committed NT$100 million apiece.

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

A NT$6.5 billion five-year revolving credit for Unipresident Enterprise was inked on October 7 via mandated leads and bookrunners Bank of Taiwan, Bank of Tokyo-Mitsubishi UFJ, First Commercial Bank, Fubon Commercial Bank, Hua Nan Commercial Bank, Mega International Commercial Bank, Mizuho Corporate Bank and Taiwan Cooperative Bank.

The loan pays a spread of 50bp over the secondary CP rate and has an average life of 4.4 years.

Final allocations saw the mandated lead arrangers contribute NT$750 million apiece, while Agricultural Bank of Taiwan gave NT$500 million as a participant.

Proceeds are to refinance existing bonds and for working capital requirements.

A NT$2 billion five-year fundraising for YFY Packaging, a subsidiary of Yuen Foong Yu Paper Manufacturing, has been launched into syndication via mandated lead arrangers Bank of Taiwan, Cathay United Bank, Chang Hwa Commercial Bank, Chinatrust Commercial Bank, First Commercial Bank, Fubon Commercial Bank, Hua Nan Commercial Bank and Mega International Bank.

The margin is priced at 70bp over the secondary CP rate. The deal is expected to close on a club basis, with signing scheduled for early November.

The funds are for debt repayment, restructuring and working capital purposes.
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