loan-week-september-1117

Loan week, September 11-17

A roundup of the latest syndicated loan market news.

Australia

A A$1.95 billion portion of Aquasure Finance's A$4.1billion debt package is currently ongoing in syndication via bookrunners National Australia Bank and Westpac Banking Corp, which sealed a A$1.92 billion seven-year tranche and a A$250 million 3.5-year portion earlier this month.

The margin starts at 350bp over BBSY for the first five years and climbs to 375bp in year six and to 400bp in year seven.

Banks are offered six levels of participation in syndication - mandated lead arrangers lending A$200 million or above get 240bp in upfront fees; lead arrangers contributing from A$150 million to A$199 million earn 200bp; co-arrangers holding A$75 million to A$99 million get 175bp; senior managers taking A$50 million to A$74 million earn 150bp and managers offering A$35 million to A$49 million get 125bp.

The syndication is in place to allow additional lenders to join in the existing A$1.92 billion term loan. Proceeds are to support a PPP project that entails the development of a desalination plant in the Wonthaggi region, Victoria, Australia. 

Austar United Communications has extended a A$225 million portion of its A$850 million senior debt facility signed in August 2007. Repayment, initially due in August 2011, has been extended to August 2014.

The A$225 million portion, currently priced at 140bp over BBSY, will have a 350bp average interest rate from August 2011.

Calyon was the bookrunner on the 2007 facility, while ANZ, BNP Paribas, Bank of Scotland International, Commonwealth Bank of Australia, National Australia Bank, Rabobank and Societe Generale joined as mandated lead arrangers.

Primary Health Care has appointed National Australia Bank as the sole bookrunner of its A$1.2 billion facility.

The debt package initially comprised a A$900 million three-year non-amortising tranche and a A$300 million multi-option revolving working capital facility. However, following an equity raising, the debt facility is only expected to be drawn to approximately A$900 million. National Australia Bank and Deutsche Bank have already committed A$500 million and A$125 million respectively. NAB is expected to launch the deal into the market shortly.

Proceeds are to refinance existing debt that matures in February 2010.

China

Shandong Huatai Paper has successfully secured a Rmb3.5 billion 10-year financing from a consortium of nine banks.

Final allocations saw Industrial & Commercial Bank of China commit Rmb1.2 billion, while China Construction Bank took Rmb600 million. Bank of China, Agricultural Bank of China and Agricultural Development Bank of China pledged Rmb500 million, Rmb400 million and Rmb300 million respectively. Hua Xia Bank and China Minsheng Banking Corp joined in with Rmb250 million tickets.

Guaranteed by the parent company, Shandong Huatai Group, the deal features quarterly repayments after a grace period of three years.

Proceeds are for capital expenditure and working capital purposes.

Syndication of Weiqiao Textile's $118 million loan has been closed via bookrunners Calyon and RBS. China Construction Bank, Mizuho Corporate Bank and Wing Lung Bank joined in as equal-status lead arrangers. Initially, the deal was sealed in August for $105 million, but a $13 million portion was added recently via an accordion feature.

The deal comprises a three-year term loan priced at 180bp over Libor.

Final allocations saw the leads provide $10 million apiece, while mandated lead arrangers Wing Lung Bank, China Construction Bank and Mizuho Corporate Bank provided $20 million, $15 million and $13 million respectively. Arrangers Bangkok Bank, Hang Seng Bank and Oversea-Chinese Banking Corp lent $10 million apiece, while Bank of East Asia, Dah Sing Bank, Intesa Sanpaolo and Union de Banques Arabes et Francaises held $5 million each.

Proceeds are for refinancing and working capital purposes.

Hong Kong

Comba Telecom's $100 million three-year term loan has been further upsized from $85 million and signed via sole mandated lead arranger and bookrunner HSBC. Joining as equal status arrangers were Bangkok Bank, Bank of Ayudhya, Cathay United Bank, Chang Hwa Commercial Bank, China Merchants Bank, China Minsheng Bank, CITIC Ka Wah Bank, Hang Seng Bank, Hua Nan Commercial Bank, Industrial Bank of Taiwan, Taiwan Business Bank and Xiamen International Bank.

The deal is guaranteed by Comba Telecom System Holdings and proceeds are for 3G corporate development and market expansion purposes.

India

Jaiprakash Associates' Rs10 billion fundraising was sealed last week via sole mandated lead arranger State Bank of India.

The deal has a 120bp commitment fee based on the undrawn amount.

Proceeds are for project financing purposes.

A Rs7 billion loan for GTL Infrastructure was signed last week through sole mandated lead arranger and bookrunner State Bank of India.

The nine-year financing pays a floating interest rate of 175bp below SBAR.

Final allocations saw participant Union Bank of India provide Rs2 billion, while Bank of Baroda and Bank of India lent Rs1.5 billion apiece. Punjab National Bank and United Bank of India committed Rs1 billion each. The lead did not participate in the funding.

Proceeds are to support a project that entails a rollout of 3,626 telecom towers for cellular telecom operators in India.

A Rs800 million transaction for Prithvi Ferro Alloys has been signed through sole bookrunner State Bank of India.

The margin on the 7.75-year loan is 25bp over each lender's prime lending rate.

Final allocations saw participants Allahabad Bank and United Bank of India lend Rs175 million apiece, while Indian Overseas Bank gave Rs150 million. Federal Bank, State Bank of Bikaner & Jaipur and State Bank of Travancore provided Rs100 million each. The lead did not participate in the funding.

Proceeds are for the construction of a 9 MVA Ferro Alloy plant and an 18MW captive power plant in Bankura, West Bengal, India.

A Rs53.3 billion nine-year financing for Tata Teleservices has been completed through sole bookrunner IDBI Bank.

Final allocations saw the lead lend Rs1.3 billion, while participant Punjab National Bank committed Rs12 billion. Canara Bank, Syndicate Bank and Union Bank of India provided Rs7.5 billion, Rs6 billion and Rs5.1 billion respectively. Bank of Baroda held Rs5 billion while Corporation Bank lent Rs3.3 billion. State Bank of Travancore provided Rs2.2 billion, while State Bank of Hyderabad, State Bank of India and State Bank of Mysore offered Rs2 billion apiece. South Indian Bank held Rs1.5 billion and Bank of Maharashtra, Dena Bank and Jammu & Kashmir Bank provided Rs1 billion each. United Bank of India rounded off the syndicate with a Rs500 million ticket.

Proceeds are to support the rollout of a GSM mobile telecom network in 17 circles in India.

Indonesia

Sole mandated lead arranger and bookrunner Standard Chartered Bank launched a $275 million three-year term loan for Perusahaan Gas Negara (PGN) on September 11.

Fully underwritten by the lead, the amortising facility is priced at 310bp over Libor and features an average life of two years. Banks are welcome to participate in one of three levels. Mandated lead arrangers contributing $30 million or above get an upfront fee of 80bp. Lead arrangers joining with $20 million to $29 million take 65bp and arrangers holding $10 million to $19 million earn 50bp.

Banks will have until late October to revert and proceeds are for general corporate purposes.

Trans Jabar Tol's Rp1.8 trillion transaction has been sealed through sole mandated lead arranger and bookrunner Bank Negara Indonesia.

The loan pays 50bp in fees to each lender.

Final allocations saw the lead lend Rp783 billion while participant Bank Rakyat Indonesia (Persero) gave Rp752.8 billion. Bank Jabar Banten and Bank Riau provided Rp100 billion apiece, while Bank Jatim came in with Rp50 billion.

Proceeds are to support the construction of the 54 km Ciawi-Sukabumi toll road.

South Africa

A $1 billion fundraising self-arranged by Standard Bank was signed in mid-September with Bank of China, China CITIC Bank, China Development Bank and Industrial & Commercial Bank of China (Macau).

Proceeds are for general corporate purposes.

South Korea

Korea Airlines
' $60 million eight-year secured term loan has been completed via mandated lead arrangers Industrial & Commercial Bank of China and Natixis on a club basis.

Proceeds are to support the purchase of aircraft.

Taiwan

Adimmune Corp
's NT$2.3 billion financing was sealed on September 14 via coordinating arrangers EnTie Commercial Bank, E.Sun Commercial Bank, First Commercial Bank, Land Bank of Taiwan and Taiwan Business Bank. The facility was oversubscribed by 50% and upsized from NT$2 billion.

The seven-year debt package comprises a NT$937 million term loan and a NT$1.4 billion revolver. The margin of both tranches is 75bp. The base rate for tranche one is the 90-day primary CP rate, while tranche two is priced over the 30-day, 60-day, 90-day or 180-day primary CP rate. The margin of both tranches will step down to 70bp if the borrower's net profit margin is less than 5%, but more than or equal to 1%; sales volume is a minimum of NT$500 million and the operating profit margin is at least 5%. Pricing will drop to 60bp if the borrower's profit margin is equals to or more than 5%; sales volume is a mimimum of NT$500 million and the operating profit margin is at least 5%. The primary CP rate floor is 1.25%.

Final allocations saw the leads contribute NT$391 million each, while lead manager Bank of Taiwan pledged NT$230 million. Chang Hwa Commercial Bank took NT$150 million to join as a manager.

Proceeds are for refinancing and working capital purposes.

A NT$700 million fundraising for Advanced Connectek was inked on September 11 via bookrunners and mandated lead arrangers Bank of Taiwan, Hua Nan Commercial Bank and Taiwan Cooperative Bank.

Guaranteed by the chairman and a senior manager of the borrower, and secured by deposits at Taiwan Cooperative Bank, the seven-year transaction is split into a NT$300 million term loan and a NT$400 million revolving credit. Both tranches offer a spread of 147bp over Taiwan Cooperative Commercial Bank's one-year floating time savings deposit rate.

Final allocations saw one of the leads, Taiwan Cooperative Bank, take NT$245 million, while Hua Nan Commercial Bank pledged NT$135 million. Bank of Taiwan and participant Agricultural Bank of Taiwan lent NT$100 million each. Yuanta Commercial Bank joined in with NT$70 million, while Chang Hwa Commercial Bank rounded off the syndicate with NT$50 million.

Proceeds are for working capital purposes.

Chailease Finance recently sealed a NT$2 billion three-year financing via mandated lead arrangers Agricultural Bank of Taiwan, EnTie Commercial Bank and Taiwan Cooperative Bank.

Joining as participants were E.Sun Commercial Bank, Far Eastern International Bank, Hua Nan Commercial Bank, Mega International Commercial Bank and Taiwan Business Bank.

Proceeds are for working capital purposes.

Jochu Technology's NT$800 million loan has been completed via coordinating arrangers Bank Sinopac, Chinatrust Commercial Bank, EnTie Commercial Bank and Yuanta Commercial Bank.

With a factory and account receivables pledged as security, the three-year debt consists of a NT$160 million term loan and a NT$640 million revolver, which pay a spread of 115bp over the 90-day, 120-day or 180-day primary CP rate with a commitment fee of 15bp.

Final allocations saw the bookrunners commit NT$123 million each, while co-arrangers Bank of Taiwan and Taiwan Shin Kong Commercial Bank came in with NT$86 million apiece. Participants Shanghai Commercial & Savings Bank gave NT$70 million and Bank of Panhsin ended up with NT$66 million.

Proceeds are to refinance an existing debt facility signed in 2006 and for working capital purposes.

An extension of a NT$600 million credit facility for Protech Wheel Industry signed in August 2006 was approved yesterday (September 17) by a banking consortium led by E.Sun Commercial Bank.

The tenor of the three-year credit facility has been extended by three more years, while the facility amount has been lowered to NT$590 million. Drawdown is not allowed during the extended period.

Proceeds are for general corporate purposes.

Unitech Printed Circuit Board Corp's NT$2 billion dual-tranche, dual-currency financing completed in April 2008 was amended on September 11 via coordinating arrangers Cathay United Bank, Industrial Bank of Taiwan, Taipei Fubon Commercial Bank and Taishin International Bank. The facility was downsized to NT$800 million as part of the amendment since the rest of the original facility was either prepaid or cancelled.

In the amendment, pricing is linked to the borrower's debt-to-tangible net-worth ratio over the secondary CP rate as follows: if the ratio is higher than or equal to 1.25%, the margin is 87.5bp; if the ratio is lower than 1.25%, the spread narrows to 62.5bp. An interest rate floor of 2% has been introduced from the signing date of the amendment. Financial covenants have been amended as well.

Final allocations saw bookrunners Taishin International Bank take NT$112 million, while Cathay United Bank, Industrial Bank of Taiwan and Taipei Fubon Commercial Bank lent NT$96 million apiece. Lead manager Chang Hwa Commercial Bank gave NT$80 million, while managers Agricultural Bank of Taiwan, Land Bank of Taiwan, Taiwan Cooperative Bank and Taiwan Business Bank held NT$72 million each. Taiwan Shin Kong Commercial Bank ended up with NT$32 million.

Proceeds are for refinancing and working capital purposes.

The seven subsidiaries of Wisdom Marine Line secured a ¥16.3 billion 8.5-year ship financing via coordinating arrangers Land Bank of Taiwan, Mega International Commercial Bank and Taiwan Cooperative Bank last week.

Guaranteed by the chairman of Wisdom Marine Line, the facility is split into ¥15 billion and ¥1.3 billion term loans, which offer a margin of 137.5bp over three-month Tibor with a commitment fee of 5bp.

Final allocations saw Mega International Commercial Bank take ¥4.3 billion, while Land Bank of Taiwan and Taiwan Cooperative Bank joined at the top with ¥3 billion each. Participants Bank Sinopac held ¥2 billion, while Bank of Taiwan and Taipei Fubon Commercial Bank committed ¥1.5 billion apiece. E-Sun Commercial Bank rounded off the syndicate with ¥1 billion.

Proceeds are to support the borrower's purchase of seven bulk carriers.

¬ Haymarket Media Limited. All rights reserved.

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