Loan Week, September 28-October 4

A roundup of the latest syndicated loan market news.

Macquarie GroupÆs A$8 billion multi-tranche facility has been launched into general syndication via mandated lead arrangers 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 loan is split into a A$1.6 billion 364 day standby facility, a A$2.4 billion revolver and a A$4 billion four year credit.

A roadshow was held in Australia on September 28, followed by roadshows in Asia this week and one to be held next week in London.

Banks are expected to revert by the end of the month.

A A$10 billion multi-tranche financing for Wesfarmers, which is the largest corporate fundraising of its type in Australia, was launched into senior syndication on September 21. ANZ, BNP Paribas and National Australia Bank are the leads and bookrunners for the facility.

The facility 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.

Banks have until the end of October to revert. Proceeds are to support the acquisition of Coles Group.


Shanghai Huazhe Bund HouseÆs RMB850 million financing has been completed via sole mandated arranger Standard Chartered which held RMB300 million.

Arrangers China Merchants Bank committed RMB210 million while Oversea-Chinese Banking Corp and United Overseas Bank ended up with RMB170 million each.

The loan features a tenor of 3.25 years. Greentown Real Estate Group and Greentown China Holdings are the guarantors.

Proceeds are to support the development of property projects in Shanghai.

Hong Kong

Airport AuthorityÆs HK$6 billion three year revolving credit facility was signed on September 28 via a consortium of 14 banks.

Allocations saw mandated lead arrangers, Banco Bilbao Vizcaya Argentaria, Bank of China, Bank of Tokyo-Mitsubishi UFJ, Commonwealth Bank of Australia, Citi, Hang Seng Bank, HSBC, Mizuho Corporate Bank, Standard Chartered, Sumitomo-Mitsui Banking Corp and Tai Fung Bank each committing HK$501 million. Arrangers Banca Monte Dei Paschi Di Siena, Calyon and DBS Bank joined the facility with holds of HK$163 million apiece.

The loan features a spread of 10bp over Hibor. The Airport Management of Hong Kong is acting as a guarantor.

Hopewell Holdings SPV, HH FinanceÆs HK$7 billion seven year revolver was completed on September 28 via a group of 13 mandated arrangers û Agricultural Bank of China, Bank of China (Hong Kong) Bank of Communications, BNP Paribas, Calyon, China Construction Bank, China Merchants Bank, Citi, DBS Bank, ICBC Asia, Mizuho Corporate Bank, Nanyang Commercial Bank and Sumitomo Mitsui Banking Corp. The facility was oversubscribed and upsized from HK$6.5 billion due to an enthusiastic market response.

The loan pays a spread of 32bp over Hibor. Hopewell Holdings is acting as the guarantor.

Final allocations saw all 13 mandated arrangers holding HK$456 million apiece. Coming in as lead managers were Bank of Tokyo-Mitsubishi UFJ, Chong Hing Bank, Oversea-Chinese Banking Corp and Tai Fung Bank contributing HK$200 million each. Co-lead managers Bank of East Asia and Wing Lung Bank provided HK$100 million apiece with Bank of China (Macau) lending HK$72 million.

Proceeds are to refinance a HK$5.35 billion loan signed in June 2006 and for general corporate purposes.


General syndication of a $200 million seven year term loan for Amtek Auto has been extended for another two weeks via lead arrangers ABN AMRO, Calyon, DBS Bank, HSBC, ICICI Bank, ING Bank, Mizuho Corporate Bank and State Bank of India. ABN AMRO was the original mandated lead arranger and bookrunner.

The loan features an average life of six years and a margin of 135bp over Libor. The financing also features a greenshoe of $50 million.

So far, syndication has seen three domestic Taiwanese banks join in û Bank of Taiwan, Chang Hwa Commercial Bank and Mega International Commercial Bank. A few more banks are still waiting for approvals and have requested an extension from the end of September.

The targeted closing date is now set for October 15.

Aban Group SPV, Deep Drilling 4Æs $169 million dual tranche facility has received its first commitment from CIC (Singapore) in senior syndication, with a hold of $25 million.

The deal comprises a $123 million senior debt and a $46 million junior debt, featuring door-to-door tenors of 6.5 years and 7 years respectively.

Banks are slated to revert by October 19 and will launch into general syndication soon after.

Essar CommunicationsÆ $3.59 billion facility was launched into general syndication last week via BNP Paribas, Commerzbank, Citi and Standard Chartered. The facility was funded on September 17.

The loan features a tenor of 3.7 years and a spread of 75bp over Libor.

The deadline for banks to respond is October 26. The funds are to refinance Essar GlobalÆs existing debts and to fund future expansion.

After a short delay due to the US sub-prime woes, Jindal Poly FilmsÆ $40 million yen-equivalent seven year fundraising has finally been launched into limited syndication by sole lead arranger and bookrunner ABN AMRO.

The facility features an average life of six years and pays a spread of 100bp over Libor. A greenshoe of $20 million can be exercised if required.

Banks have until October 19 to revert.

Syndication of India Infrastructure FinanceÆs $300 million 10 year fundraising has been extended to the end of the month via lead arrangers and bookrunners Calyon and Standard Chartered Bank.

Certain terms and conditions had to be revised which led to the extension.

This is the first infrastructure loan of its kind in India and is guaranteed by the Indian Government.

Syndication of Larsen & ToubroÆs $200 million dual tranche financing is expected to close this week via original mandated lead arrangers Barclays Capital, Citi and HSBC.

A few banks are still processing their approvals. The facility is already heavily oversubscribed and is likely to be upsized at the borrowerÆs discretion.

The loan is split equally and features tenors of five and seven years respectively.

Syndication of Pacific First ShippingÆs $170.6 million ship financing has closed via sole mandated arranger ICICI Bank which took $90.6 million.

Allocations saw arrangers Commerzbank providing $30 million while DVB Bank and United Overseas Bank ended up with $25 million each.

Proceeds are to finance the purchase of 12 ships. The signing ceremony is slated to take place at the end of the month.

Tata America International CorpÆs (TAIC) $100 million three year bullet loan closed syndication at the end of September via mandated lead arrangers Banc of America Securities Asia and Citi.

The margin was priced at 44bp over Libor.

The syndicate has not yet been disclosed as allocations are currently being finalised. It is known that the deal was oversubscribed and commitments are going to be scaled back.

Nam Fatt CorpÆs $50 million five year credit has been launched into general syndication via sole mandated arranger and bookrunner ABN AMRO.

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

Banks have been invited to join on three tiers. Lead arrangers joining with $15 million or above receive 100bp in fees, arrangers committing $10 million to $14 million get 80bp while co-arrangers holding $5 million to $9 million earn 60bp.

Proceeds are for working capital purposes and the closing date is slated for October 15.

New Zealand

A NZ$120 million one year bullet loan for Medical MortgagesÆ has been inked via sole bookrunner ANZ which provided NZ$90 million. Westpac joined as a participant with a hold of NZ$30 million.

Sealord GroupÆs NZ$176 million three year revolver was signed on September 27 via sole lead arranger HSBC.

Final allocations saw the lead arranger commit NZ$61 million while lead managers ANZ held NZ$60 million and Rabobank lent NZ$55 million.


Scomi Marine ServicesÆ $155 million seven year term loan was signed on September 25 via mandated arrangers Oversea-Chinese Banking Corp, Rabobank and United Oversea Bank. The original mandated leads and bookrunners were Oversea-Chinese Banking Corp and Rabobank.

The amortising loan features a margin of 135bp over Libor and an average life of 4.83 years.

Syndication saw two banks joining in as lead arrangers, Bangkok Bank and RHB Bank.

Proceeds are for capital expenditure purposes and to refinance an existing debt facility. The deal was secured against the companyÆs shipping vessels.

Senoko PowerÆ S$250 million two year self-arranged club deal was signed on September 26 via a group of three banks.

Final allocations saw DBS Bank committing S$120 million, Oversea-Chinese Banking Corp holding S$80 million and Standard Chartered lending S$50 million.

A S$367 million five year credit for Sim Lian was signed on September 27 on a club basis via mandated leads HSBC, Oversea-Chinese Banking Corp and United Overseas Bank.

Proceeds are to finance and support the development of the Bishan Park condominium.
South Korea

Hynix û ST Semi Conductor (Wuxi) Æs $750 million facility is still in syndication via mandated leads China Development Bank and Korea Development Bank.

The five year deal pays a spread of 140bp over Libor, has a one year grace period and carries an average life of 3.5 years.

Syndication involves banks being invited separately by the mandated leads. It is known that Korea Development Bank has approached Hana Bank and Korea Exchange Bank, while China Development Bank is targeting domestic Chinese banks.

Korea Exchange Bank is said to have committed verbally whilst Hana Bank has turned down the invitation.

Proceeds of the loan are to support the construction of the second phase of a wafer plant project based in Wuxi, China. Banks have until October 28 to revert.


A NT$7 billion three year credit for President Chain Store Corp has been signed via mandated arrangers Bank of Nova Scotia, Bank of Tokyo-Mitsubishi UFJ, Calyon, Chinatrust Commercial Bank, HSBC, Mega International Commercial Bank, Mizuho Corporate Bank, Sumitomo Mitsui Banking Corp and Taipei Fubon Commercial Bank. The original leads and bookrunners were Calyon, Chinatrust Commercial Bank, HSBC and Mega International Commercial Bank.

Final allocations saw all the mandated arrangers committing NT$690 million apiece. Coming in as a co-arranger was Hua Nan Bank holding NT$490 million while Land Bank of Taiwan took NT$300 million as a participant.

Proceeds are for general corporate purposes.

Syndication of Ta Chen (BVI) HoldingsÆ $25.5 million five year facility has been completed via a consortium of seven banks.

The loan features a spread of 105bp over Libor.

Allocations saw mandated lead arrangers E. Sun Commercial Bank and Industrial Bank of Taiwan each holding $6 million. Participants Cooperative Commercial Bank took $3.5 million while Land Bank of Taiwan, Taishin International Bank and Sunny Bank lent $3 million each. Bank of East Asia ended up with $1 million.

The funds are to support local financing purposes.

Winbond Electronics CorpÆs NT$5 billion four year term facility was completed on September 28 via seven mandated lead arrangers and bookrunners û Chinatrust Commercial Bank, First Commercial Bank, Fuhwa Commercial Bank, Industrial Bank of Taiwan, Mega International Commercial Bank, Ta Chong Bank and Taipei Fubon Commercial Bank.

The loan was oversubscribed and upsized from NT$4 billion due to a strong response from the market. The financing features a margin of 78bp over IRS (interest rate swap) with a commitment fee of 10bp.

Final allocations saw the bookrunners contributing NT$650 million apiece with Bank SinoPac ending up with NT$450 million as a participant.

Proceeds are for working capital purposes and were secured against the companyÆs 12-inch wafer machinery plant.


A $40 million four year financing for Electricity of Vietnam Telecom has been completed via sole bookrunner Standard Chartered.

The facility is guaranteed by Electricity of Vietnam and features a spread of 115bp over Libor.

Final allocations saw mandated lead arrangers Cathay United Bank contributing $15 million while Standard Chartered took $8 million. Bank of Tokyo-Mitsubishi UFJ and United Overseas Bank joined as arrangers with holds of $8.25 million each.

Proceeds are to finance the purchase of imports including fixed phones, mobile phones, data cables and other accessories.
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