Loan Week, September 7-13

A roundup of the latest syndicated loan market news.

An A$850 million multi-tranche facility for Austar Entertainment has been completed via mandated arrangers ANZ, BNP Paribas, Bank of Scotland International, Calyon Australia, Commonwealth Bank of Australia, National Australia Bank, Rabobank and Societe Generale. Calyon Australia is the sole bookrunner and original mandated arranger for the facility.

The financing is split into an A$225 million four-year term loan æAÆ, an A$500 million six-year term loan æBÆ, an A$100 million five-year revolver and an A$25 million revolving credit facility solely provided by Commonwealth Bank of Australia.

The deal pays a spread of 170bp for term loan æAÆ, 200bp for term loan æBÆ and 170bp over the Bank Bill Rate (BBR) for the five-year revolver.

Final Allocations saw ANZ and Commonwealth Bank of Australia contribute A$145 million apiece. National Australia Bank held A$125 million with BNP Paribas and Bank of Scotland International providing A$85 million each. Calyon Australia, Rabobank and Societe Generale committed A$80 million, A$60 million and A$50 million respectively. Coming in as senior managers were Natixis and ING Bank holding A$40 million and A$35 million respectively.

Proceeds are to refinance an existing debt signed on August 2006.

Grand Hotel ManagementÆs A$420 million dual tranche credit was funded on September 3 via sole mandated lead arranger and bookrunner ANZ.

The facility is divided into an A$365 million term loan æAÆ and an A$55 million term loan æBÆ both with a tenor of five years.

The loan amount will be sold down to other investors during syndication. Proceeds of loan æAÆ are to refinance an existing debt and for general corporate purposes and loan æBÆ will provide for capital expenditure requirements.

A $794.2 million 10-year fund raising for Air China was signed on Wednesday (September 12) via mandated lead arrangers Bank of China, China Development Bank, Credit Industriel et Commercial, ING Bank and Natixis. Original leads were Credit Industrial et Commercial, ING Bank and Natixis with the latter two banks acting as bookrunners.

The facility was oversubscribed substantially by 225% due to an overwhelming market response.

Proceeds are to finance the purchase of 13 new aircraft.

After a long delay, Hynix û ST Semi Conductor (Wuxi)Æs $750 million term loan was finally launched yesterday (September 13) via mandated leads China Development Bank and Korea Development Bank.

The five-year deal pays a spread of 140bp over Libor with 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 is in the process of inviting Hana Bank and Korea Exchange Bank, while China Development Bank is targeting domestic Chinese banks.

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 12 to revert.

A Rmb29.8 billion multi-tranche project financing for Fujian Refining & Petrochemical has been completed via lead arrangers Agricultural Bank of China, Bank of China, Industrial & Commercial Bank of China (ICBC) and China Construction Bank.

The financing is split into a Rmb16.8 billion tranche æAÆ, a $730 million tranche æBÆ, a $470 million tranche æCÆ and a Rmb4 billion tranche æDÆ. Tranches æBÆ, æCÆ and æDÆ were signed on a club basis.

In Tranche æA, China Construction Bank provided Rmb3.4 billion while ICBC committed Rmb3.1 billion. Bank of China and Agricultural Bank of China each held Rmb2.8 billion. Participants Sinopec Finance held Rmb1.7 billion while China Development Bank lent Rmb1.4 billion. Industrial Bank took Rmb600 million. Joining with holds of Rmb200 million each were Bank of Communications, China Citic Bank, China Everbright Bank, China Merchants Bank and China Minsheng Bank.

Tranche æBÆ saw China Construction Bank contribute $184 million. ICBC provided $168 million while Bank of China and Agricultural Bank of China took $151 million apiece. China Development Bank ended up with $76 million.

Tranche æCÆ saw each of the lead arrangers joining in with holds of $117.5 million while they held Rmb1 billion each in tranche æDÆ.

Proceeds are to finance a Fujian petrochemical refinery expansion project.

JetKing HoldingsÆ $24.6 million four-year facility has been signed via sole lead arranger and bookrunner DBS Bank (Hong Kong branch).

The bullet term loan pays a spread of 250bp over Libor.

Allocations saw the bookrunner and Fubon Bank who joined in as an equal-status arranger holding $12.3 million apiece.

Shanghai Jing An Century Property Development has signed a Rmb1 billion four-year term loan via sole mandated lead arranger and bookrunner DBS Bank (Shanghai Branch).

The deal features a margin of 100% over the PBOC rate.

Final Allocations saw the mandated lead contributing Rmb500 million with First Sino Bank holding Rmb200 million. China Construction Bank (Shanghai Branch) and ICBC (Shanghai Branch) provided Rmb150 million each.

Proceeds are to finance the construction and development of a commercial building based in Shanghai.

Tianrui CementÆs Rmb2.44 billion five-year term loan was signed last week via a syndicate of 11 banks. The facility was downsized from Rmb3 billion as the borrower decided not to refinance a portion of its existing bilateral loan with Agricultural Bank of China in order to avoid a prepayment penalty.

Allocations saw mandated arrangers International Finance Corp commit Rmb450 million while China Construction Bank held Rmb400 million. ING Bank joined with a hold of Rmb348 million while Citic Industrial Bank and Societe Generale took Rmb300 million apiece. JPMorgan contributed Rmb200 million. Participants Korea Exchange Bank held Rmb120 million while Shinhan Bank and Bank of Nova Scotia each provided Rmb100 million. Hang Seng Bank lent Rmb75 million while China Mercantile ended up with Rmb50 million.
Hong Kong

K Wah Stones HoldingsÆ HK$1.8 billion five year revolver was signed on September 11 via a consortium of 10 banks. The deal was oversubscribed due to a good market response, and was upsized from HK$1.5 billion.

Allocations saw lead arrangers HSBC commit HK$350 million while China Construction Bank, Hang Seng Bank and Shanghai Commercial Bank took HK$300 million each. Nanyang Commercial Bank joined as an arranger with a commitment of HK$200 million while co-arrangers Bank of East Asia and Mizuho Corporate Bank took HK$100 million apiece. Joining in with holds of HK$50 million each were senior managers Chong Hing Bank, Maybank and Wing Hang Bank.

A HK$1 billion five year financing for New World Development (NWD) was signed last Thursday (Sept 6) via mandated leads Agricultural Bank of China (Hong Kong Branch), Bank of Tokyo-Mitsubishi UFJ, Citi and Mizuho Corporate Bank (Hong Kong Branch). Citi was the sole bookrunner and original mandated lead arranger.

The facility was upsized from HK$800 million due to a strong response from the market. The deal pays a spread of 37bp over Hibor.

Final allocations saw the mandated leads providing HK$130 million apiece with arrangers Scotiabank (Hong Kong) and Wing Lung Bank contributing HK$100 million each. Chiyu Banking Corp, Malayan Banking Berhad (Hong Kong Branch), Public Bank (Hong Kong) and Tai Fung Bank all ended up holding HK$70 million apiece.

Proceeds are to refinance an existing facility signed in 2002 and also for working capital purposes.

Cathay Pacific Airlines SPV WoodpeckerÆs $77.97 million financing has been completed via mandated arrangers ING Bank, Oversea-Chinese Banking Corp and Sumitomo Mitsubishi Banking Corp.

The facility features a tenor of 11.6 years and the proceeds are to finance an Airbus A330-300 aircraft.


Larsen & ToubroÆs $200 million dual tranche facility was launched into general syndication on September 5 via original mandated lead arrangers Barclays Capital, Citi and HSBC. Bank of Nova Scotia, Commonwealth Bank of Australia, Export Development Bank of Canada, Mizuho Corporate Bank, Sumitomo Mitsui Banking Corp have joined the facility as equal-status mandated lead arrangers.

The deal is split into two equal tranches featuring tenors of five and seven years respectively. The margin is 54bp over Libor.

Banks have been invited to join on two tiers. Arrangers lending $10 million or above receive 50bp in management fees for all-ins of 55bp and 61bp for both tranches while lead managers holding between $5 million and $9 million get 45bp for all-ins of 54bp and 60bp respectively on both tranches.

A roadshow was held in Singapore yesterday (September 13). Banks are expected to revert by October 3.

Syndication of Reliance IndustriesÆ $500 million five year credit is closing soon, with the arrangers awaiting commitments from one or two banks. Allocations are likely to be finalised by September 17. ABN AMRO, Bank of Tokyo-Mitsubishi, Calyon, HSBC and Standard Chartered are leading the facility.

The loan features a spread of 39bp over Libor. The funds are to support capital expenditure requirements.

Pamapersada NusantaraÆs $350 million dual tranche financing is closing today (September 14). The deal which is led by DBS Bank, HSBC, Mizuho Corporate Bank, Standard Chartered Bank, Sumitomo Mitsui Banking Corp and United Overseas Bank is heavily oversubscribed and is likely to be upsized at the borrowerÆs discretion.

The facility comprises a $240 million five-year credit and a $110 million three-year revolver. Allocations are to be finalised next week.

The signing ceremony is slated for September 24 in Singapore.


Genting Sanyen Industrial PaperÆs M$680 million LBO financing was inked on September 12 via a group of 11 banks. CVC Asia Pacific is the financial sponsor.

The facility comprises two M$250 million term loans with tenors of five and seven years respectively, a M$130 million seven-year credit and a M$50 million five-year revolver.

Allocations saw mandated lead arrangers CIMB Bank, DBS Bank, ING Bank, JP Morgan and United Overseas Bank and arrangers BOS International, HSH Nordbank, Oversea-Chinese Banking Corp and UniCredit each commit M$68 million. Co-arrangers BayernLB and VTB Bank took M$34 million apiece.

Proceeds are to support the CVC Asia Pacific-led M$745 million leveraged buyout of the borrower.


PowerSerayaÆs S$450 million dual tranche credit has been completed on a club basis via Bank of America, Bank of Tokyo-Mitsubishi UFJ, Calyon and DBS Bank.

The deal is split into a S$400 million seven-year term loan and a S$50 million five-year revolver.

Allocations saw the banks contribute S$112.5 million apiece.

Proceeds are for general corporate purposes.

Sri Lanka

Syndication of Sampath BankÆs $25 million one-year fundraising is still ongoing via original mandated lead arranger HSBC. Habib Bank and Mashreq have joined the facility as equal status arrangers.

The facility pays a spread of 80bp over Libor. Banks have been invited on two levels. Lead arrangers committing $5 million or more receive 40bp in upfront fees while co-arrangers providing between $3 million and $5 million gain 35bp.

Banks have until September 21 to respond.
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