Loan week, October 5-11

A roundup of the latest syndicated loan market news.

Carlyle Group and National Hire have mandated ABN AMRO (Australia Branch), ANZ, Calyon (Australia), Mizuho Corporate Bank, Sumitomo Mitsui Banking Corp and Westpac Banking Corp to lead arrange a A$2.26 billion leveraged buy-out facility to support the acquisition of Coates Hire.

The six year facility is split into a A$2.025 billion term loan, a A$175 million capital expenditure portion and a A$60 million revolving working capital tranche.

ING Industrial FundÆs A$1.8 billion multi-currency revolving facility is likely to be launched into syndication shortly, once discussions have been finalised via mandated lead arrangers ANZ, Deutsche Bank and JP Morgan.

Syndication of Macquarie GroupÆs A$8 billion multi-tranche facility is still going strong with roadshows held in London last week and a roadshow held in New York this week. The facility is part of Macquarie BankÆs proposed restructuring and is led by ABN AMRO, ANZ, Barclays Capital, Commonwealth Bank of Australia, Dresdner Kleinwort, HSBC, JP Morgan, Merrill Lynch, National Australia Bank, Royal Bank of Scotland and Westpac. Barclays Capital, HSBC and Royal Bank of Scotland are running the books.

The fundraising is split into a A$1.6 billion 364-day standby facility with four optional 180-day extension periods, a A$2.4 billion revolver with a minimum three year extension period and a A$4 billon three year term loan with two optional one-year extension periods.

Commitments are due on October 26.

WesfarmersÆ A$10 billion multi-tranche financing has been well received in senior syndication with many banks mid-way through their credit-approvals. ANZ, BNP Paribas and National Australia Bank are the leads and bookrunners for the facility.

The fundraising comprises a A$4 billion one year bridge loan, a A$1 billion one year revolver and a A$5 billion five year bullet loan.

So far, Commonwealth Bank of Australia and Westpac have joined in as sub-underwriters.

Senior syndication is targeted to close next week with general syndication launching soon after. Banks will then have until the end of October to revert.


A $68 million dual currency credit for Hubei Yadong Cement is still in syndication led by sole mandated arranger Citi.

The five year dual tranche financing is split equally and is being syndicated in RMB and US dollars.

The closing date has yet to be confirmed and is dependant on the documentation. Proceeds are for capital expenditure purposes.

Hong Kong

Citi, HSBC and Standard Chartered have launched a HK$4 billion five year dual tranche fundraising for Kingboard Chemical into sub-underwriting.

The deal is split equally into a term loan and a revolver and features a spread of 48bp over Hibor.

In senior syndication, banks have been invited on two levels for the title of co-ordinating arranger. Banks underwriting HK$500 million or more receive 33.75bp in management fees for an all-in of 57bp while those joining with take-and-hold commitments of HK$350 million or more receive 33.75bp for an all-in of 55.5bp.

Kingboard Investments and Elec & Eltek International Holdings are acting as guarantors in the deal.

Banks have until October 25 to respond.

Mass Transit Railway Corp (MTRC)Æs HK$10 billion dual tranche loan has closed general syndication via a consortium of 15 mandated lead arrangers. The banks were Banco Bilbao Vizcaya Argentaria, Bank of China, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Calyon, China Development Bank, Citi, Fortis, Hang Seng Bank, HSBC, ING Bank, Mizuho Corporate Bank, Rabobank, Standard Chartered Bank and Sumitomo Mitsui Banking Corp. Bank of China, Citi, HSBC and Standard Chartered Bank are also the bookrunners.

The fundraising is split into a HK$3 billion three year term loan, tranche æAÆ, and a HK$7 billion five year revolver, tranche æBÆ, with margins of 10bp and 15bp over Hibor respectively.

Final allocations saw the mandated lead arrangers all committing HK$620 million apiece with Tai Fung Bank taking HK$300 million as lead manager. Coming in as senior managers were Chong Hing Bank holding HK$200 million with Banca Monte dei Paschi di Siena and Wing Hang Bank contributing HK$100 million each.

Signing is slated to take place today (October 12). Proceeds are to support the merger of the two government-owned transport infrastructures, MTR and KCR.

Barclays Capital, BNP Paribas and Mizuho Corporate Bank have launched TrafiguraÆs $400 million multi-tranche financing into general syndication.

The loan comprises a 364-day revolver tranche æAÆ which features two one-year extension options at the discretion of the lenders and pays a spread of 65bp over Libor; and a three year revolver tranche æBÆ and a five year term portion tranche æCÆ that feature spreads of 85bp and 125bp respectively.

Banks have been invited on two tiers. Lead arrangers committing $25 million or more receive 12.5bp in upfront fees in tranche æAÆ, and get 25bp and 45bp for tranches æBÆ and æCÆ respectively.

Arrangers providing between $10 million and $24 million gain 10bp in tranche æAÆ, receive 22bp in tranche æBÆ and get 40bp in tranche æCÆ

Roadshows were held in Taiwan last week and in Singapore yesterday. Another is scheduled to take place in Dubai next week.

The funds are to refinance an existing $300 million fundraising and for general corporate purposes. Banks have until November 8 to respond.

Sole lead Bank of China has launched Western Harbour TunnelÆs HK$3.5bn five year credit into senior syndication. The deal was funded in February and features a spread of 32bp over Hibor.

The deal comprises a HK$2.7 billion six year term loan and an HK$800 million eight year revolver.

Banks have been invited on two tiers. Those holding HK$300 million or more receive a top-level all-in of 37bp while those joining with a take-and-hold of HK$250 million gain an all-in of 36bp.

The funds are to refinance an existing deal signed in August 2002.

A $200 million three year dual tranche financing for Yanlord Land (Hong Kong) has been launched into senior syndication via coordinating arrangers ABN AMRO and HSBC.

The loan comprises a $120 million amortising credit facility and an $80 million revolver. The margin is 154bp over Libor.

Banks have been invited to join for the co-ordinating arranger title on two levels. Banks joining with commitments of $40 million or more receive 60bp in upfront fees for a top-level all-in of 183.4bp while those committing $30 million gain 60bp for an all-in of 180.7bp.

Yanlord Land Group is the guarantor. Roadshows were held in Nanjing and Shanghai on October 9 and 10. The loan has been well received, with over 20 banks having attended the roadshows for the borrowerÆs debut financing.

Commitments are due on October 18 and the deal is targeted to close on October 25.

Ashok LeylandÆs $200 million six year fundraising is likely to launch today via mandated leads Banc of America Securities, Citi, Calyon, HSBC and Standard Chartered Bank.

Details have not been fully disclosed as of yet.

A $150 million dual tranche financing for Axis Bank (formerly UTI Bank) has been launched into general syndication via mandated arrangers Calyon, DBS Bank, Intesa Sanpaolo, Natixis and Standard Chartered Bank.

The facility is split into a $100 million one year tranche, paying a margin of 16bp over Libor and a $50 million three year portion with a spread of 40bp. A greenshoe of $50 million can be exercised.

So far, it is known a couple of commitments have been received already with a few more banks awaiting approvals.

Banks have until early next week to revert. Proceeds are for general corporate purposes.

ICICI Bank launched Firstsource SolutionsÆ $275 million seven year credit into senior syndication on October 10.

Banks have been invited on four levels. Mandated arrangers providing $35 million or more gain 80bp in participation fees for an all-in of 277bp while lead arrangers holding between $20 million and $35 million gain 75bp for an all-in of 268bp. Arrangers lending between $10 million and $20 million get 70bp and co-arrangers taking between $5 million and $10 million receive 60bp for all-ins of 266bp and 263bp respectively.

Roadshows will be held in Singapore and Hong Kong at the end of October and commitments are due on November 8. General syndication is slated to launch thereafter.

Barclays Capital is in the process of expanding the MLA group for Tata PowerÆs $950 million recourse and non-recourse facilities. The deal comprises a $350 million seven year amortising recourse portion and a $600 million non-recourse financing.

Roadshows were held in Singapore in early October. The financing is slated to launch into general syndication in the week of October 15.

United SpiritsÆ ú595 million acquisition of Whyte & Mackay, one of the largest Scotch whisky manufacturers, will be funded through recourse and non-recourse facilities of $618.9 million and ú355 million respectively.

Bank of Scotland and ICICI Bank have been mandated to arrange the ú355 million non-recourse facility. The leads have jointly underwritten ú177.5 million each and are also running the books.

The loan comprises a ú175 million amortising term loan tranche æAÆ, a ú150 million bullet loan tranche æBÆ and a ú30 million five year revolver tranche æCÆ.

Tranche æAÆ features a spread of 200bp over Libor and carries an average life of five years. Tranche æBÆ pays a margin of 350bp and tranche æCÆ pays a spread of 250bp.

The financing is likely to be launched into syndication soon.

The $618.9 million five year recourse portion was launched into general syndication recently via sole mandated lead arranger Citi. DBS Bank, ING Bank, State Bank of India and WestLB have since joined as equal-status arrangers.

The loan offers a margin of 250bp over Libor.


Syndication of Nam Fatt CorpÆs $50 million five year credit has been extended due to requests from banks. ABN AMRO is the sole mandated arranger and bookrunner.

The fundraising features a margin of 225bp over Libor and an average life of 3.5 years.

Proceeds are for working capital purposes and the closing date is now slated for October 29.

Sole lead Dresdner Kleinwort launched an Ç800 million 364-day fundraising for Petroliam Nasional (Petronas) into senior syndication on October 3.

The deal comprises a Ç650 million term loan and a Ç150 million revolver.

A select group of relationship banks have been invited. Banks joining with a take-and-hold commitment of Ç150 million receive 12bp in participation fees for an all-in of 22bp.

The deadline for banks to revert is October 23.


SMART CommunicationsÆ $50 million five year facility was completed earlier this week (October 10) as a club deal via a consortium of six banks û Bank of Tokyo-Mitsubishi UFJ, DBS Bank, ING Bank (Singapore Branch), Mizuho Corporate Bank (Hong Kong Branch), NORD/LB (Singapore Branch) and Standard Chartered Bank.

The facility pays a spread of 42bp over Libor. Proceeds are for capital expenditure purposes.


Ta Chen HoldingsÆ $25.5 million five year loan was signed on October 5 via mandated leads and bookrunners E.Sun Commercial Bank and Industrial Bank of Taiwan.

The loan pays a spread of 105bp over Libor.

Final allocations saw the bookrunners holding $6 million apiece. Coming in as participants were Cooperative Commercial Bank committing $3.5 million while Land Bank of Taiwan, Taishin International Bank and Sunny Bank took $3 million each. Bank of East Asia provided $1 million.

Proceeds are for general corporate purposes.


A $270 million eight year amortising term loan for Petrovietnam was closed on October 8 via lead arrangers and bookrunners ANZ, BNP Paribas and Natixis.

Allocations are currently being finalised and signing is scheduled to take place towards the end of the month.

¬ Haymarket Media Limited. All rights reserved.
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