loan-week-september-29--october-5

Loan Week, September 29 - October 5

A roundup of the latest syndicated loan market news.
Australia

Consolidated Press HoldingsÆ A$1.18 billion dual tranche credit has been signed. Proceeds will be used for general corporate purposes and to refinance existing debt.
The transaction is split into A$530 million and A$655 million five and seven year revolvers.

Sole mandated arranger ANZ Investment Bank committed A$175 million, lenders National Australia Bank contributed A$160 million, Commonwealth Bank of Australia,
Rabobank, and Westpac Banking Corp provided A$100 million apiece, BNP Paribas, Citibank, Royal Bank of Scotland and Toronto Dominion Australia took A$75 million each and ABN Amro, Bank of America and Calyon ended up with A$50 million apiece.

Downer Group Finance has signed a A$350 million loan via sole mandated arranger National Australia Bank. ANZ Investment Bank, Bank of Scotland, HSBC, Mizuho Corporate Bank, SMBC, WestLB and Westpac joined as lenders.

The deal is split into A$85 million and A$165 four and two year revolvers. Proceeds are for general corporate purposes.

Link MS Holdings has successfully raised A$137.3 million via a multi-tranche loan. The facility comprises A$32.3 million, A$40 million, A$45 million and A$20 million five year term loans. Mandated arrangers National Australia Bank and Westpac provided A$68.7 million apiece. Proceeds are for general corporate and acquisition purposes.


China

Hong Fu Jin PrecisionÆs $100 million five year financing has been completed on a club basis. Mandated coordinating arrangers are Banc of America Securities Asia, BNP Paribas, Citigroup, DBS Bank and Mizuho Corporate Bank providing $20 million apiece. Proceeds will be used to purchase machinery and to refinance existing debt. The Taiwanese parent company, Hon Hai Precision Industry is providing a guarantee. Signing took place on September 29.


Hong Kong

PCCW HKT Telephone signed a HK$10.2 billion six year revolver on October 3 via a consortium of 16 banks. Proceeds will be used to refinance existing debt.

Mandated arrangers are ICBC Asia committing HK$2 billion, Bank of China, BayernLB and Calyon contributing HK$800 million each, Hang Seng Bank taking HK$650 million, Bank of Nova Scotia, DBS Bank, and Mizuho Corporate Bank lending HK$600 million apiece, Bank of Tokyo-Mitsubishi UFJ and SMBC with commitments of HK$500 million each, Bank of America Securities Asia, BNP Paribas, Royal Bank of Scotland and Standard Chartered Bank pledging HK$400 million apiece and Bank of Communications and HSBC ending up with HK$350 million each.

Shenzhen InvestmentÆs $465 million five year fundraising has been signed. A total of 10 banks are participating in the deal. Proceeds are to refinance existing debt and to provide for general corporate purposes.

Mandated arrangers Bank of China (Hong Kong) provided $75 million, Hang Seng Bank took $69 million, Industrial and Commercial Bank of China (Asia) lent $64 million, HSBC pledged $60 million. Arrangers Bank of East Asia, Citic Ka Wah Bank and DBS Bank (Hong Kong) contributed $46 million apiece while China Construction Bank Corp (Hong Kong) provided $27 million and Bank of Communications (Hong Kong) and Bank of Tokyo-Mitsubishi UFJ (Hong Kong) held $23 million and $9 million respectively. Signing was held on September 29.


Sino-French Water DevelopmentÆs HK$1.4 billion financing has been launched into general syndication via mandated coordinating arrangers Bank of China (Hong Kong), BNP Paribas, Calyon and ICBC (Asia).

The seven year facility is split into a HK$780 million term loan and a HK$620 million term loan that can be converted into a revolver after the fourth year. It features a margin of 64bp over Hibor and is being marketed on two tiers. Arrangers contributing HK$100 million or above receive 30.5bp, translating to a top level all-in of 70bp over Hibor while lead managers taking HK$50 million or above get 20.4bp for an all-in of 68bp over Hibor.

Proceeds will be used to refinance existing debt. Financial close is scheduled for October 20. The borrower last tapped the market in September 2001 when it raised HK$1.2 billion via a seven year term loan. That facility was arranged by Credit Agricole Indosuez, HSBC and Bank of China (Hong Kong).

Syndication of the HK$2 billion equivalent fundraising for Tianjin Development Holdings has been closed via mandated coordinating arrangers Calyon, Hang Seng Bank, HSBC and Rabobank. The five year facility received an overwhelming response and saw 17 banks join in general syndication. However, the facility size is unlikely to be increased. Proceeds will be used to refinance existing debt and for general corporate purposes. Allocations will be finalised shortly.
India

Hutchison Essar is tapping the market for a $530 million financing to fund expansion plans. The borrowerÆs parent company, Hutchison Whampoa recently raised HK$9 billion via a five year term loan. That facility was arranged by Bank of China (Hong Kong), Bank of Tokyo-Mitsubishi UFJ, Calyon, DBS Bank, Hang Seng Bank, HSBC, ICBC Asia, Mizuho Corporate Bank, Royal Bank of Scotland, Standard Chartered (Hong Kong), SMBC and WestLB (Hong Kong).

Hutchinson EssarÆs $33 million six month term loan has been signed via sole mandated arranger ABN Amro. Proceeds are for general corporate purposes.

The $1.5 billion project financing for Reliance Petroleum has been closed via the mandated lead arrangers. The dual tranche facility has received a blowout response in both senior and general syndication. The 14 original mandated lead arrangers have been joined by 38 banks in syndication. Bankers in the arranger group are in talks with the borrower whether or not to increase the facility size.

Mandated lead arrangers are ABN Amro, Banc of America Securities Asia, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Calyon, Citigroup, DBS Bank, DZ Bank, HSBC, ICICI Bank, Mizuho Corporate Bank, Standard Chartered, State Bank of India and SMBC. Proceeds will be used to support the development of a petrochemical complex and refinery project in India. Allocations will be finalised shortly.

Tata SteelÆs $750 million financing has been closed via a syndicate of nine banks. The seven year facility saw six banks join in general syndication. They are Banca Intesa, Banca Monte dei Paschi di Siena, DZ Bank, Export Development Canada and National Bank of Dubai.

The deal is being arranged by ABN Amro, Bank of Tokyo-Mitsubishi UFJ, Calyon, Citigroup, First Commercial Bank, Maybank, Mizuho Corporate Bank, Standard Chartered Bank and SMBC. Proceeds will be used for general corporate purposes.


Indonesia

PT Bumi Resources has closed syndication of a $300 million credit facility. Bumi Resources is the largest exporting and mining company in Indonesia. Credit Suisse is the sole mandated arranger.


Malaysia

Commerce Capital LabuanÆs $1.1 billion fundraising has been completed via a syndicate of 12 banks.

Mandated lead arrangers are ABN Amro, Bank of Tokyo-Mitsubishi UFJ, Citibank Malaysia and Standard Chartered (Labuan) providing $177 million each while BayernLB and First Commercial Bank (Hong Kong) are taking $148 million and $86 million respectively.

Lead arrangers Dresdner Bank (Labuan) and Oversea-Chinese Banking Corp committed with holds of $50 million apiece. Lead managers are Banca Intesa and BBVA lending $20 million each, JP Morgan Chase (Labuan) contributing $10 million and Banca Popolare dellÆEmilia Romagna absorbing $2 million.

Proceeds will be used to finance the acquisition of Southern Park and to refinance existing debt. Signing was held on September 28.

Philippines

Joint mandated lead arrangers DBS Bank and Standard Chartered have launched San MiguelÆs $250 million financing into general syndication.

The facility is priced at 65bp over Libor and is being marketed on three tiers. Co-arrangers providing $12.5 million or above get 30bp, translating to a top level all-in of 73.6bp over Libor; arrangers contributing $8.5 million to $12.4 million earn 25bp for an all-in of 72.1bp and lead managers taking $5 million to $8.4 million receive 20bp for an all-in of 70.7bp.

The five year amortising loan features an average life of 3.5 years and banks have until mid-October to respond.


South Korea

Kyognam Bank has signed a $100 million one year term loan on a club basis. Mandated arrangers are BayernLB, Calyon, Citigroup and Oversea-Chinese Banking Corp committing $17.5 million each and SMBC and Wachovia Bank providing $15 million apiece. Proceeds are for general corporate purposes. Signing took place on September 29.

Samsung CorporationÆs $200 million five year loan-style FRN has been signed via mandated lead arrangers Arab Bank (Singapore), Bank of Nova Scotia Asia, DBS bank, ING Bank, Korea Exchange Bank (London), Mizuho International and Industrial Bank of Korea. Shinhan Asia is an arranger while KEXIM Asia and Woori joined as lead managers. Proceeds are to refinance existing debt and for general corporate purposes.

SK Shipping has successfully raised $397 million from the market via a group of nine banks. Proceeds are to refinance existing debt.

The facility is splits equally and carries margins of 44bp and 65bp over Libor respectively.

Mandated arrangers Korea Development Bank contributed $46.5 million and BNP Paribas and SMBC took $40.5 million each. Joining as co-arrangers are ICBC (Asia) committing $60 million, KEB pledging $50 million, BBVA lending $45 million, Bank of Tokyo-Mitsubishi UFJ and DnB NOR committing $40 million apiece and Mizuho Corporate ending up with $35 million.


Taiwan

Hiwin TechnologiesÆ NT$43 billion multi-tranche facility has been signed. There are 13 banks providing the funds. Mandated arrangers Bank of Taiwan, Land Bank of Taiwan, International Bank of Taipei and Taiwan Business Bank provided NT$619 million apiece. Managers Hua Nan Commercial Bank and Taiwan Cooperative Commercial Bank committed NT$339 million each, Export-Import Bank of the Republic of China lent NT$222 million, Chang Hwa Commercial Bank and First Commercial Bank contributed NT$210 million apiece, Agricultural Bank of Taiwan, Fuhwa Commercial Bank and Sunny Bank pledged NT$140 million apiece and Central Trust of China ended up with NT$84 million.

Hongfujin Precision Industry (Taiyuan)Æs $100 million five year fundraising was signed on September 30. Mandated arrangers Bank of America, BNP Paribas, Citibank, DBS Bank and Mizuho Corporate Bank provided $20 million each. The deal offers a margin of 47.5bp over Libor. Proceeds will be used for working capital requirements and to refinance existing debt.

Wintron CorpÆs A$300 million 364-day revolver has been launched via mandated arrangers Cathay United Bank, Fuhwa Bank, HSBC (Taipei), Hua Nan Commercial Bank, Land Bank of Taiwan, Oversea-Chinese Banking Corp, Shanghai Commercial & Savings Bank and Taiwan Business Bank. Proceeds are to finance the account receivables.


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