Loan Week, September 21-27

A roundup of the latest syndicated loan market news.

Macquarie Bank has mandated 11 banks - ABN AMRO, ANZ, Barclays Capital, Dresdner Kleinwort, HSBC, National Australia Bank, Royal Bank of Scotland, Westpac, Commonwealth Bank of Australia, JP Morgan and Merrill Lynch - to arrange an A$8 billion commitment facility.

The loan comprises a A$1.6 billion 364-day standby facility, a A$2.4 billion revolving credit and a A$4 billion portion.

The loan is part of Macquarie BankÆs proposed restructuring and proposed establishment of Macquarie Group and a non-operating holding company. Proceeds are to fund the groupÆs acquisition of investment banking businesses and other non-banking activities from the borrower. Drawdown is slated to occur once the restructure is effective.

Roadshows are expected to be held in early October.


CIT Finance & Leasing CorpÆs Rmb3 billion facility was completed at the beginning of this week (September 24) via mandated leads Citi and Standard Chartered Bank. The deal was oversubscribed due to a good market response, and was upsized from Rmb2.4 billion.

The fundraising pays a spread of 90% over the Peoples Bank of China rate.

Coming in as arrangers were ABN AMRO, Agricultural Bank of China, Bank of China, Bank of Tokyo-Mitsubishi UFJ, Industrial & Commercial Bank of China and Sumitomo Mitsui Banking Corp. Rounding off the syndicate were senior managers BNP Paribas, Deutsche Bank and Mizuho Corporate Bank.

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

HSBC has been mandated to arrange a $200 million three-year revolver for Shanghai Zhenzhua Port Machinery. Bank of Beijing, Bank of Tokyo-Mitsubishi UFJ, China Development Bank, Hang Seng Bank, Intesa Sanpaolo, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp joined as equal status arrangers.

Banks have been invited on three tiers. Arrangers providing $15 million or above receive 33bp in management fees for an all-in of 44bp. Co-arrangers committing between $10 million and $14 million get 30bp while senior managers lending between $5 million and $9 million gain 27bp for all-ins of 43bp and 42bp respectively.

Proceeds are to refinance a $200 million loan signed in November 2005 and for working capital purposes.

Hong Kong

A HK$3 billion bullet facility for China Resources Land has been completed on a club basis via a syndicate of 11 banks.

The revolver will be converted into a term loan after the first two years.

Allocations saw Bank of China (Hong Kong) and CCB International Finance commit HK$500 million each. Joining the transaction with holds of HK$300 million apiece were Agricultural Bank of China, Bank of Tokyo-Mitsubishi UFJ, DBS Bank and Sumitomo Mitsui Banking Corp. Citic Ka Wah Bank provided HK$200 million while Bank of East Asia, Mizuho Corporate Bank, Oversea-Chinese Banking Corp and Tai Fung Bank ended up with HK$150 million each.

Essar CommunicationsÆ $3.59 billion fundraising was funded on September 17 by mandated lead arrangers Standard Chartered, Commerzbank, BNP Paribas and Citi.

The facility features a tenor of 44 months and a spread of 75bp over Libor.

The funds will be used to partly refinance existing debt and to fund further investment and expansion plans of the group.

The fully-underwritten deal is slated to be launched early next month.

A $100 million yen-equivalent one-year term loan for Export-Import Bank of India was signed on September 21 as a club deal via mandated leads Bank of Tokyo-Mitsubishi UFJ, Calyon and Commerzbank.

The deal carries a spread of 20bp over Libor.

Allocations saw Commerzbank contributing $50 million with Bank of Tokyo-Mitsubishi UFJ and Calyon providing $30 million and $20 million respectively.

ICICI Bank has a launched a $169 million ship financing for Deep Drilling 4, a special purpose vehicle of the Aban Group, into syndication. The financing has been pre-funded and is split into a $123 million senior debt tranche and a $46 million junior debt tranche. The deal features door-to-door tenors of 6.5 years and seven years and spreads over Libor of 150bp and 100bp respectively.

Banks have been invited on two levels. Lead arrangers providing between $12.5 million and $24 million receive 75bp in upfront fees for an all-in of 156bp while arrangers committing between $10 million and $12.5 million gain 70bp for an all-in of 154bp.

A roadshow will be held in Singapore on October 3. Banks are expected to revert by October 26.

Tata TeleservicesÆ $400 million seven-year credit was completed on Tuesday (September 25) via 12 mandated lead arrangers û ABN AMRO, Bank of Baroda, Calyon, Commerzbank, DBS Bank, Dexia Bank, Export Development Canada, First Gulf Bank, ICICI Bank, KBC Bank, Rabobank and Standard Chartered Bank. The original mandated leads and bookrunners were ABN AMRO, Calyon, DBS Bank, ICICI Bank, Rabobank and Standard Chartered Bank.

The facility features a margin of 120bp over Libor, an average life of 5.75 years and a grace period of five years.

Final allocations saw Commerzbank and the six bookrunners holding $40 million apiece with Dexia Bank and Export Development Canada providing $30 million each. Bank of Baroda, First Gulf Bank and KBC Bank contributed $20 million apiece.

Proceeds are for general corporate purposes.

PT Pamapersada NusantaraÆs $425 million fundraising has been inked via a consortium of 24 banks. The facility was heavily oversubscribed and has been upsized from $350 million.

The loan comprises a $290 million five-year amortising facility and a $135 million three-year revolver.

Allocations saw all but one mandated lead arranger commit $40 million apiece. The were DBS Bank, HSBC, Mizuho Corporate Bank, Standard Chartered and Sumitomo Mitsui Banking Corp. United Overseas Bank provided $58 million.

Lead arrangers Oversea-Chinese Banking Corp contributed $21 million and JPMorgan held $17 million. Joining with holds of $15 million each were Aozora Bank, PT Bank Rabobank International (Indonesia), Bank of Tokyo-Mitsubishi UFJ, Export Development Bank of Canada and ING Bank.

Joining in as arrangers with commitments of $7 million apiece were Bangkok Bank, PT Bank Internasional (Indonesia), Commerzbank and Sumitomo Mitsui & Banking. Industrial & Commercial Bank of China took $5 million.

Lead managers Doha Bank provided $5 million while Emirates Bank International, Export-Import Bank of China, First Gulf Bank and Bank of China ended up with $4 million each.


A $1.2 billion five-year fundraising for San Miguel Corp. was signed on September 19 via a consortium of 12 mandated arrangers û ANZ, Banco de Oro, Bank of the Philippine Islands, Bank of Tokyo-Mitsubishi UFJ, Calyon, CITIC Ka Wah Bank, DBS Bank, HVB Bank, Maybank, Mega International Commercial Bank, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp. Calyon, DBS Bank and Mizuho Corporate Bank were the original mandated lead arrangers and bookrunners for the facility.

The loan pays a spread of 85bp over Libor and has a grace period of two years. The average life of the deal is 3.5 years.

Syndication saw six banks joining in as lead arrangers û Aozora Bank, Bank of China, Citi, HSBC, Land Bank of Philippines and Rizal Commercial Banking Corp. An additional five banks came in as arrangers û Cathay United Bank, Chinatrust Commercial Bank, E.Sun Commercial Bank, Taiwan Commercial Bank and Standard Chartered Bank. ABN AMRO completed the syndicate as manager.

Proceeds are to refinance existing $650 million and $250 million facilities signed in October 2005 and November 2006 respectively.

South Korea

Samsung Heavy IndustriesÆ $408 million four-year guaranteed facility was completed last Friday (September 21) via sole mandated arranger and bookrunner Calyon.

Calyon provided $108 million with lead arrangers Korea Exchange Bank and Woori Bank holding $200 million and $100 million respectively.

Proceeds are to fund the purchase of three 13,300 twenty-foot equivalent unit (TEU) container vessels.

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