Loan week, September 30-October 7

A roundup of the latest syndicated loan market news.

Australia

Loy Yang Power’s A$455 million five-year term loan was sealed as a club deal on September 30 via a consortium of 15 mandated lead arrangers.

The lenders are ANZ, Aozora Bank, BNP Paribas, Bank of Tokyo-Mitsubishi UFJ, Development Bank of Japan, Investec Bank, KBC Bank, Mizuho Corp, National Australia Bank, Sumitomo Mitsui Banking Corp, Societe Generale, Sumitomo Trust & Banking, Taiwan Business Bank, United Overseas Bank and Westpac.

Proceeds are for the development of a coal-fired power station in Victoria, Australia.

Study Group
’s A$330 million five-year leveraged buyout facility was concluded in late September via bookrunners and mandated lead arrangers Credit Agricole, Goldman Sachs, National Australia Bank and Westpac.

Borrowed via EDU Investments SPV, the fully-underwritten transaction is split into three term loans of A$115 million, A$135 million and A$40 million. There is also a A$40 million revolving credit.

Bank West, Challenger Fund, DBS Bank, Deutsche Bank, ING Bank, Investec Bank and Macquarie Bank came in as lead arrangers in the general syndication.

Proceeds are to support the Providence Equity Partners-led secondary buyout of Study Group by CHAMP Private Equity and Petersen Investments.

Hong Kong

Citic Pacific has successfully obtained a HK$5.7 billion five-year dual-currency revolving/term credit facility via bookrunners Bank of China (Hong Kong), HSBC and Standard Chartered Bank. The loan was upsized to HK$4.8 billion from HK$3.0 billion at the launch of general syndication and further increased to HK$5.7 billion following an overwhelming response from the market.

The deal, which is available as a revolver for the first two years and a term loan thereafter, offers a margin of 120bp over Hibor or Libor.

Final allocations saw Bank of China (Hong Kong) and HSBC lend HK$700 million each and Standard Chartered Bank provide $380 million. Among the mandated lead arrangers Hang Seng Bank contributed HK$600 million and Agricultural Bank of China (Hong Kong) and Sumitomo Mitsui Banking Corp gave HK$500 million apiece. ANZ, Bank of Tokyo-Mitsubishi UFJ, China Construction Bank and Mizuho Corporate Bank came in with HK$300 million each, and BNP Paribas pledged HK$250 million.

Bank of Communications, China Merchants Bank, Maybank and United Overseas Bank joined in as lead arrangers with holds of HK$200 million each, while senior manager Chong Hing Bank ended up with HK$100 million.

Proceeds are for refinancing and general corporate purposes.

Shenzhen Investment
’s $400 million four-year self-arranged term loan has been signed on a club basis via coordinating arrangers Agricultural Bank of China, Bank of China (Hong Kong), Bank of East Asia, DBS Bank, Hang Seng, HSBC, ICBC Asia and Wing Lung Bank.

Proceeds are for working capital purposes.

India

A Rs5.6 billion 16.5-year term loan for Baharampore Farakka Highways was completed on September 29 via sole bookrunner and mandated lead arranger YES Bank.

The facility will be repaid in 52 quarterly instalments following a 2.5-year grace period.

Final allocations saw the lead take Rs951.7 million. Participants Allahabad Bank gave Rs910 million and Indian Bank contributed Rs900 million. India Infrastructure Finance (IIFCL) pledged Rs750 million, while Vijaya Bank joined in with Rs600 million. Oriental Bank of Commerce, Dena Bank and Corporation Bank gave Rs550 million, Rs500 million and Rs450 million respectively.

Proceeds are for a highway project in India.

Essar Bulk Terminal Paradip
’s Rs4.1 billion 11-year credit facility was signed as a club deal last week with mandated leads YES Bank and L&T Infrastructure Finance Company providing the funds equally.

The facility consists of a term loan of Rs3.9 billion and a bank guarantee facility of Rs250 million.

Sponsored by Essar Shipping Ports and Logistics, the loan will be repaid in 36 quarterly instalments following a two-year grace period.

Proceeds are to part finance a shipping project at Paradip Port in Orissa, India.

Export-Import Bank of India
’s $70 million one-year term loan was signed in late September via sole bookrunner and mandated lead arranger BNP Paribas.

The unsecured financing saw participation from Banca Monte dei Paschi di Siena (Hong Kong), Mega International Commercial Bank (Offshore Banking) and Shanghai Commercial & Savings Bank (Offshore Banking).

Proceeds are for general corporate purposes.

A Rs16.7 billion multi-tranche facility for Maytas Infra was completed on September 29 via sole bookrunner and mandated lead arranger State Bank of India.

The facility comprises term loans of Rs3.0 billion, Rs2.5 billion, Rs5.8 billion and Rs3.0 billion. There is also a cash revolving credit tranche of Rs2.5 billion.

Syndication saw Allahabad Bank, Bank of India, Bank of Maharashtra, ICICI Bank, IDBI Bank, Indian Overseas Bank, Punjab National Bank and Vijaya Bank join in as participants.

Proceeds are for refinancing, capital expenditure and working capital purposes.

A Rs23.4 billion multi-tranche term loan for Meenakshi Energy was inked on October 1 via bookrunners IDBI Bank and SBI Capital Markets.

The first tranche features a six-month grace period, while tranches 2 to 8 have a grace period of 12 months.

Participants Rural Electrification Corp pledged Rs7.5 billion and India Infrastructure Finance (IIFCL) took Rs4.5 billion. IDBI Bank and UCO Bank gave Rs3.0 billion and Rs1.4 billion, respectively. Bank of India, Punjab & Sind Bank, State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and Union Bank of India contributed Rs1.0 billion each.

Proceeds are to construct a 600MW coastal thermal power project at Thamminapatnam Village, Andhra Pradesh, India.

Indonesia

A $150 million three-year term loan for Federal International Finance has been signed on a club basis via mandated lead arrangers Bank Ekonomi Raharja, Bank of Tokyo-Mitsubishi UFJ, Chinatrust Commercial Bank, HSBC, Standard Chartered Bank and Sumitomo Mitsui Banking Corp.

Proceeds are for general corporate purposes.

Tower Bersama
and its subsidiaries have obtained a $350 million dual-tranche financing on a club basis via a consortium of nine mandated lead arrangers.

With a cross guarantee from the borrowers, the deal consists of a $300 million five-year term loan and a $50 million three-year revolving credit.

Final allocations saw Oversea-Chinese Banking Corp take $70 million, while Credit Agricole and DBS Bank joined in with $55 million apiece. Bank UOB Buana and United Overseas Bank committed $37.5 million each and ANZ Panin Bank came in with $35 million. Bank of Tokyo-Mitsubishi UFJ held $25 million and Standard Bank and Bank OCBC Indonesia ended up with $20 million and $15 million respectively.

Proceeds are for general corporate purposes.

Malaysia

A $25 million three-year term loan for AAX Capital has been signed via sole bookrunner and mandated lead arranger Citi.

Al Rajhi Banking & Investment Corp (Malaysia), Bank of Taiwan (Singapore) and OCBC Bank (Malaysia) joined in as participants.

Proceeds are to support aircraft financing.

Singapore

HSBC Institutional Trust Services (Singapore), acting as the trustee for Suntec Reit, successfully secured a S$700 million club financing on October 4 via a consortium of nine mandated lead arrangers.

Secured by Suntec City Mall, the term loan is split equally into a three-year tranche and a five-year portion, which are priced at 120bp and 140bp over SOR respectively.

Final allocations saw United Overseas Bank take S$225 million, while Citi, Commonwealth Bank of Australia, DBS Bank and Standard Chartered Bank gave S$80 million each. CIMB Bank and Natixis contributed S$50 million apiece and Bank of Nova Scotia Asia and Bank of China committed S$30 million and S$25 million respectively.

Proceeds are for property development purposes.

Taiwan

CoAsia Microelectronics Corp’s $210 million one-year revolving credit was signed last week via sole bookrunner Chinatrust Commercial Bank. The deal was oversubscribed and increased from $210 million.

Chang Hwa Commercial Bank, China Development Industrial Bank and Taiwan Cooperative Bank joined in as mandated lead arrangers, while First Commercial Bank, Hua Nan Commercial Bank and Yuanta Commercial Bank came in as participants.

Proceeds are for refinancing and working capital purposes.

Sole mandated lead arranger Entie Commercial Bank has successfully closed a NT$700 million five-year transaction for Liton Technology Corp.

The facility is split into a NT$267 million term loan and a NT$433 million revolver that are priced at 165bp and 175bp over the secondary CP rate respectively.

Final allocations saw the lead and Land Bank of Taiwan take NT$141 million each, while Mega International Commercial Bank and Taishin International Bank contributed NT$97 million apiece.  First Commercial Bank and Hua Nan Commercial Bank lent NT$80 million each and Taiwan Business Bank held NT$64 million.

Proceeds are to refinance an existing loan signed in March 2006 and for working capital purposes.

A NT$2.5 billion five-year refinancing for Simpal Electronics was completed on October 6 via bookrunners Cathay United Bank, E. Sun Commercial Bank and Taishin International Bank.

The term facility comprises a NT$1.7 billion tranche and an NT$800 million portion that are priced at 85bp over the secondary CP rate.

Syndication saw Bank Sinopac, Chinatrust Commercial Bank, Industrial Bank of Taiwan, Jih Sun International Bank, Taipei Fubon Commercial Bank and Yuanta Commercial Bank join at lower tiers.

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