loan-week-september-511

Loan week, September 5-11

A roundup of the latest syndicated loan market news.
Australia

A $350 million 5.7-year reserve-based leading facility for Apache PVG has been launched into general syndication via mandated lead arrangers BNP Paribas and HSBC.

The structure of the deal comprises a two-year construction phase, where the parent company Apache Corp is the guarantor, and an amortising term loan, with an average life of 4.5 years. The margin is priced at 75bp over Libor during the construction period and is tied to a ratings grid; should the ratings of the parent drop to BBB+ or below, the margin steps up to 87.5bp. After completion, the margin steps up to 175bp.

There is a commitment fee based on 40% of the margin and the facility is secured by the interest and shares in the oilfields.

Banks are invited to join at three levels û lead arrangers joining with $50 million get an upfront fee of 90bp, arrangers coming in with $35 million earn 75bp and co-arrangers committing $25 million receive 65bp.

Roadshows were held last Wednesday and Thursday in Singapore and Sydney respectively, with syndication slated to close by October 3.

Proceeds are to fund the development of two oilfields located in the Exmouth Basin of Western Australia. The first project, Van Gogh, operated by Apache, will be produced through a Floating Production Storage and Offloading (FPSO) tanker beginning in early 2009. The plan is to drill 13 wells in the Van Gogh field in 2008, while work progresses on the FPSO and subsea components. Van Gogh will provide Apache with an estimated 20,000 barrels of oil per day. Pyrenees, the second project, is operated by BHP Billiton and will also be produced through an FPSO. Production should commence in 2010 and generate an estimated net 20,000 barrels per day to Apache.

A A$117.76 million seven-month bullet facility for BBP Holdings was completed last month by ANZ Investment Bank, BNP Paribas, Commonwealth Bank of Australia and Societe Generale on a club basis. The leads committed A$29.44 million apiece.

Proceeds are for working capital purposes.

BrisConnections' A$3.95 billion multi-tranche transaction has so far received one commitment in senior syndication. The mandated leads and bookrunners are Allied Irish Bank, ANZ Investment Bank, BNP Paribas, Bank of Scotland, DEPFA Bank, DZ Bank, KBC Bank, Societe Generale, United Overseas Bank and UniCredit.

The bullet facility is divided into a A$200 million six-year bridge loan, a A$475 million four-year bridge loan, a A$3.15 billion four-year construction loan which converts to a six-year term loan afterwards, and a A$120 million reserve facility.

Senior syndication is expected to close at the end of the month and general syndication will be launched thereafter. Proceeds are to support the construction of the Northern Busway and airport roundabout project in Brisbane, which will connect Brisbane to the northern suburbs.

Sun Metal Corp's $50 million 4.25-year term loan was signed in August via sole mandated lead arranger and bookrunner RBS Bank. ANZ Investment Bank, Bank of Scotland, ICBC, Korea Exchange Bank and Sumitomo Mitsui Banking Corp joined in as participants.

The bullet loan is to refinance an existing bond issue.

Hong Kong

China Pharmaceutical's $60 million three-year amortising loan is still in syndication through original mandated lead arranger and bookrunner HSBC.

The amortising facility features a margin of 225bp over Libor. Banks are welcome to join at four levels. Coordinating arrangers committing $10 million or above get an upfront fee of 70bp. Lead arrangers, arrangers and senior managers contributing $7 million to $9.9 million, $5 million to $6.9 million and $3 million to $4.9 million earn 55bp, 45bp and 35bp respectively.

Syndication of COFCO Corp's $150 million three-year letter of credit has been extended for a few days to accommodate a handful of lenders that are still processing their credit approvals. The mandated lead arrangers are Bank of America, Fifth Third Bank, ING Bank and Rabobank. With the exception of Fifth Third Bank, the lead arranges are also acting as bookrunners.

The deal pays a letter of credit participation fee of 65bp over Libor and enjoys a guarantee from Beijing-based parent company COFCO.

Arrangers coming in with a hold of $15 million or above earn 51bp in management fees with an all-in of 82bp. Co-arrangers committing between $10 million and $14 million get 45bp, while lead managers contributing between $5 million and $9 million receive 39bp.

Proceeds are to refinance an existing facility signed in October 2005.

A $40 million three-year transaction for Comba Telecom System was launched at the end of August via sole lead HSBC.

Guaranteed by the borrowerÆs parent, Comba Telecom System Holdings, the deal pays a spread of 225bp over Libor. Lead arrangers joining with more than $7 million take a fee of 100bp, while arrangers and senior managers providing between $5 million and $6.9 million and between $3 million and $4.9 million earn 80bp and 90bp respectively.

Proceeds are for working capital purposes.

Shanghai Industrial Holdings' HK$2.2 billion three-year debt package is expected to be officially mandated to eight banks shortly. The mandated leads will be Bank of China (Hong Kong), Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Calyon, CCB International Finance, HSBC, ICBC Asia and Sumitomo-Mitsui Banking Corp. With the exception of Bank of China (Hong Kong), the leads are also expected to act as bookrunners.

The bullet term loan pays a spread of 89bp over Hibor.

The funds are to support the borrowerÆs purchase of a toll road project, Hunn Hang Expressway, and the Four Seasons Hotel in Shanghai from its parent company Shanghai Industrial Investment (Holdings).

India

A $1 billion five-year financing for AV Minerals, a subsidiary of Hindalco Industries, was launched into syndication on September 9 via 11 mandated arrangers and bookrunners ABN AMRO, Banc of America Securities Asia, Bank of Tokyo-Mitsubishi UFJ, Barclays Capital, Calyon, Citi, Deutsche Bank, HSBC, Mizuho Corporate Bank, Rabobank and Sumitomo Mitsui Banking Corp. Rabobank finalised the arranger group by joining in at the top prior to the deal being launched into syndication.

The loan pays a spread of 265bp over Libor during the first year, which will increase to 285bp thereafter with the blended margin at 280bp. The deal features an average life of 3.95 years and a grace period of three years. There is a commitment fee of 100bp.

Banks have been invited on four tiers. Mandated lead arrangers committing $50 million or more receive 140bp in management fees for an all-in of 315bp, while lead arrangers contributing between $35 million and $49 million get 125bp for an all-in of 311bp. Arrangers lending between $20 million and $34 million gain 110bp for an all-in of 307bp and lead managers providing between $10 million and $19 million take 95bp for an all-in of 304bp.

Hindalco Industries, AV Metals and other material subsidiaries are acting as the guarantors and the loan is secured over shares in the borrower.

The funds are to refinance an existing $3.1 billion bridge facility signed on May 11, 2007, to pay for the acquisition of Novelis, a Canadian-based producer of rolled aluminium products. A rights issue will be used to take out the remainder of the bridge.

Indian Bank's $60 million one-year credit has been launched via bookrunners Intesa Sanpaolo and Standard Chartered Bank.

The interest on the debt is 50bp over Libor. Banks committing $10 million or above get a participation fee of 32.5bp while those who lend $5 million to $9.9 million and $3 million to $4.99 million get 30bp and 27.5bp respectively.

The deadline for commitments is expected to be by the end of September. Proceeds are for general corporate purposes.

Indonesia

A $100 million one-year facility for Bank Ekspor Indonesia is still ongoing via Bank of Tokyo-Mitsubishi UFJ, Natixis, Oversea-Chinese Banking Corp, Standard Chartered Bank and Sumitomo Mitsui Banking Corp. Five banks have joined the leads in general syndication so far.

The pricing of the deal is 80bp over Libor. Arrangers joining with $15 million or above get 55bp, while co-arrangers and lead managers participating with $10 million to $14 million and with $5 million to $9 million take 50bp and 45bp respectively.

Proceeds are for export financing purposes. Banks are expected to have until next September 15 to revert.

PT Astra Sedaya Finance's $80 million 2.75-year fundraising is in syndication via bookrunners Bank of Tokyo-Mitsubishi UFJ, Chinatrust Commercial Bank, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp. Three banks have joined the deal so far.

The amortising loan features a margin of 160bp and 170bp over Libor for offshore and onshore lenders respectively. Mandated lead arrangers coming in with $20 million or above take an upfront fee of 75bp while lead arrangers holding $10 million to $19 million earn 70bp.

Proceeds are for working capital purposes. The deadline for commitments is targeted on September 15.

Indonesia

A $100 million one-year facility for Bank Ekspor Indonesia is still ongoing via Bank of Tokyo-Mitsubishi UFJ, Natixis, Oversea-Chinese Banking Corp, Standard Chartered Bank and Sumitomo Mitsui Banking Corp. Five banks have joined the leads in general syndication so far.

The pricing of the deal is 80bp over Libor. Arrangers joining with $15 million or above get 55bp, while co-arrangers and lead managers participating with $10 million to $14 million and with $5 million to $9 million take 50bp and 45bp respectively.

Proceeds are for export financing purposes. Banks are expected to have until next September 15 to revert.

PT Astra Sedaya Finance's $80 million 2.75-year fundraising is in syndication via bookrunners Bank of Tokyo-Mitsubishi UFJ, Chinatrust Commercial Bank, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp. Three banks have joined the deal so far.

The amortising loan features a margin of 160bp and 170bp over Libor for offshore and onshore lenders respectively. Mandated lead arrangers coming in with $20 million or above take an upfront fee of 75bp while lead arrangers holding $10 million to $19 million earn 70bp.

Proceeds are for working capital purposes. The deadline for commitments is targeted on September 15.

Malaysia

A $130 million dual-tranche five-year fundraising for M3nergy Labuan, an SPV of M3nergy, is still ongoing in syndication via sole mandated lead and bookrunner Oversea-Chinese Banking Corp.

The loan is split into a $30 million tranche and a $100 million portion, both paying a top level all-in of around 200bp over Libor and a commitment fee of 25bp. The term loan tranches feature the same repayment schedule of 13 quarterly installments after a two-year grace period. The facility is secured over vessels and other related contract agreements.

Banks have been invited to join on three levels. Mandated lead arranger titles will be given to banks providing $50 million or above, lead arranger titles to those lending between $30 million and $49 million and lead manager titles for commitments between $10 million and $29 million.

So far, syndication has seen RHB Bank and Maybank join in as a lead arranger and a lead manager respectively. Banks are to revert by next week and signing is scheduled towards the end of that week.

Proceeds are for working capital purposes and to finance the acquisition of a FSO vessel.

A $500 million five-year debt package for Malaysia International Shipping Corp (MISC) is being well received in the market and is likely to be upsized through original mandated lead arrangers Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Mizuho Corporate Bank, Oversea-Chinese Banking Corp and Sumitomo Mitsui Banking Corp. More than 10 banks have joined so far and signing is expected to take place very soon.

Singapore

A S$2.9 billion project finance facility for Lion Power Holdings, an SPV owned by a consortium comprising Marubeni Corp, GDF SUEZ of France, The Kansai Electric Power, Kyushu Electric Power and Japan Bank of International Corp has been mandated to 10 banks. The mandated arrangers are ANZ Investment Bank, Bank of Tokyo-Mitsubishi UFJ, DBS Bank, Dexia, Dresdner Bank, KBC Bank, Royal Bank of Scotland, Mizuho, Natixis and Oversea-Chinese Banking Corp.

The credit comprises of two 18-month bridge loans - one for the acquisition of Senoko Power and the other for the refurbishment and repowering of the power plant. The margin will step up after each six-month period, starting from 100bp over SOR, and then increasing to 120bp and 140bp respectively.

Banks are likely to be invited on three levels; the equal-status mandated lead arranger title will earn around 75bp in participation fees.

The facility is to be pre-funded by the arranger group today (September 12) and the information memorandum is currently being prepared. General syndication is targeted to be launched by the end of the month, with one or two more banks likely to join as mandated arrangers beforehand.

Proceeds are to support the acquisition of Senoko Power from Temasek Holdings, an investment arm of the Singapore Government. This is the second Singapore power-generating company to be privatised; SinoSing Power was completed in early July 2008.

South Korea

Samsung Heavy Industries' $402.72 million four-year credit facility was inked last month via sole bookrunner Calyon.

Calyon committed $202.72 million while lead arrangers ICBC and Korea Exchange Bank provided $100 million apiece. Proceeds are to fund the purchase of a drillship.

A three-year dual-tranche club facility was sealed on September 8 for Shinsegae via mandated lead arrangers Bank of Tokyo-Mitsubishi UFJ, Landesbank Baden-Wurttemberg (Seoul Branch), Standard Chartered First Bank Korea, Sumitomo Mitsui Banking Corp (Seoul Branch) and United Overseas Bank (Seoul Branch).

The debt package comprises two term loans of Ñ4 billion and $250 million respectively. Proceeds are for capital expenditure purposes.

Taiwan

Chien Shing Harbour Service's NT$600 million dual-tranche financing was signed at the end of August. Coordinating arrangers Chang Hwa Commercial Bank, Industrial Bank of Taiwan and Taiwan Business Bank each committed NT$100 million, while Shanghai Commercial & Savings Bank provided NT$90 million and Chinatrust Commercial Bank and Land Bank of Taiwan lent $80 million apiece. Participant Taiwan Cooperative Bank rounded out the group with NT$50 million.

The fundraising is split equally between a term loan, which is priced at 90bp over the secondary CP rate, and a revolver which pays a spread of 100bp. A commitment fee of 15bp will be utilised if the usage is less than 50% of the total debt amount by the sixth month after the signing date.

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

A $300 million seven-year term loan for Eastwest Trades has been signed by a group of five mandated leads.

Mandated lead arranger Bank of Tokyo-Mitsubishi UFJ and Mega International Commercial Bank contributed $60 million apiece. Chang Hwa Commercial Bank provided $40 million, while Chinatrust Commercial Bank and Ta Chong Bank each lent $30 million. Participants Citi, Shanghai Commercial & Savings Bank and Taipei Fubon Commercial Bank took $20 million apiece, while First Commercial Bank and Export-Import Bank of the Republic of China gave $10 million each.

Secured by four 6,000 TEU container vessels, the deal features a spread of 70bp over three-month Libor.

Proceeds are for general corporate purposes.

Masstop Asia Pacific and United Win (HK) Technology's $57 million three-year revolving credit was downsized from $80 million and signed in August via bookrunners Bank of Taiwan and Taishin International Bank.

The leads each provided $20 million, while lead managers Mega International Commercial Bank and Taiwan Business Bank lent $6 million apiece. Land Bank of Taiwan rounded out the group with $5 million.

Guaranteed by Wintek Corp, the bullet loan pays a spread of 82.5bp over Libor and has a commitment fee of 15bp.

Proceeds are for general corporate purposes.

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