Loan week

A round up of loan news.

Australia

Broadcast Australia Finance's A$390 million multi-tranche financing was inked on Tuesday. The loan was more than 25% oversubscribed and commitments were scaled back.

Mandated lead arranger Barclays Capital held A$55 million. Joining as co-arrangers are National Australia Bank committing A$85 million, Australia & New Zealand Banking Group and Commonwealth Bank of Australia lending A$70 million each and Calyon and TD Securities providing A$55 million apiece.

The $1.4 billion multi-tranche revolving credit facility for Goodman Fielder is signing today (Friday). Mandated arranger National Australia Bank held A$150 million.

Co-arrangers are Commonwealth Bank of Australia and Rabobank pledging A$180 million each, Westpac lending A$140 million, WestLB committing A$130 million, ANZ Investment Bank providing A$120 million and ABN AMRO Australia, Bank of America, Calyon Australia, Mizuho Corporate Bank and SG Australia with tickets of A$100 million apiece.

The loan comprises a A$200 million one year tranche, a A$500 million three year portion and a A$700 million five year facility.

Hongkong Electric International Finance (Australia)'s A$617 million five year term loan was signed yesterday (Thursday). ANZ Investment Bank, Bank of Tokyo-Mitsubishi, Citigroup, HSBC, Mizuho Corporate Bank, Royal Bank of Scotland and Standard Chartered Bank are the mandated arrangers.

China

Shandong Chenming Paper Holdings' $80 million three year term loan is set to close syndication today (Friday). Sumitomo Mitsui Banking Corp is leading the facility.
The financing offers an all-in yield of 107.5bp over Libor.

Sino-Forest Corp has mandated Barclays Capital to lead arrange a $150 million five year financing. The will be the debut financing for the forest harvesting company.

Allocations for Ya Hsin Industrial's $97 million multi-tranche loan have been finalised. The facility was signed in December last year.

Mandated arranger Mizuho Corporate Bank held $28 million while arrangers China Construction Bank lent $18 million, Bank of East Asia took $10 million, United Overseas Bank committed $9.8m, Hang Seng Bank contributed $9.7 million, Industrial & Commercial Bank of China provided $8 million and Bank of China pledged $6 million. Bank of Communications took the title of lead manager with a commitment of $7.5 million.

Hong Kong

China Travel International Investment Hong Kong's HK$1.5 billion three year fundraising was funded in early January by sole arranger Calyon. Hotel Metropole Holdings and Well Done Enterprises are the borrowing entities.

Proceeds are to refinance a HK$1.5 billion five year loan signed in October 2002.

CNPC (Hong Kong) has decreased its five year term loan to $80 million from $120 million after deciding it will not require the full amount of funds received. Mandated arranger DBS Bank held $30 million.

Coordinating arranger is Mizuho Corporate Bank lending $19 million while Bank of Communications took the title of arranger with a commitment of $12 million. Lead managers are Sumitomo Trust & Banking lending $7 million and Nanyang Commercial Bank and Tai Fung Bank with tickets of $6 million apiece.

Signing will be held in early February.

Eva Precision Industrial Holdings' HK$120 million four year credit received four commitments in syndication and allocations are being finalised. DBS Bank and Hang Seng Bank are the mandated arrangers.

Market talk is that Lenovo Group is set to refinance its $600 million loan completed in March last year. ABN AMRO, BNP Paribas, ICBC Asia and Standard Chartered Bank arranged the financing that took out the bridge loan for the borrower's acquisition of IBM's personal computing division.

Mandated arrangers China Construction Bank and DBS Bank will close syndication of a HK$260 million 3-1/2 year dual tranche credit for Samson Paper next week. Samson Paper Holdings, Shun Hing Paper and Burotech are the guarantors.

The loan is split into a HK$78 million revolver and a HK$182 million term facility. The spread is 72.5bp over Hibor and fees to the market are on two levels. Arrangers lending HK$40 million or above receive a front-end fee of 26.25bp and lead managers committing HK$20 million to HK$39 million earn 20bp. There is also a commitment fee of 25bp.

The paper manufacturer will use the proceeds to refinance an existing HK$260 million loan that was signed in April 2003 and arranged by DBS Bank. The loan was oversubscribed and subsequently increased from HK$200 million.

The loan has already received commitments from five investors with up to five more expected to revert in the coming week. Like the previous financing, the deal is likely to be oversubscribed and the borrower may consider an increase.

Shougang Concord International Enterprises is tapping the market for a $150 million fundraising that will refinance existing debt. A mandate is expected to be awarded shortly.

Shun Tak Finance is seeking HK$4 billion from the market via a five and seven year facility arranged by HSBC. Shun Tak Holdings, Eldoren Development and Built City Investments are providing a guarantee.

The financing comprises a HK$2.5 billion five year revolving credit and a HK$1.5 billion amortising term loan. The revolver offers a margin of 52bp over Hibor while the term facility pays 63bp.

HSBC is in the process of expanding the arranger group and has invited banks to join as mandated coordinating arrangers for a sub-underwriting fee of 10bp and a management fee of 35bp for an all-in of 65bp on a blended basis. There is also a commitment fee of 17.5bp.

Proceeds are to support the construction and development of projects in Macau. The projects are a mix of residential and commercial properties and a hotel development.

Senior syndication is scheduled to close on January 27 and will launch into general soon after.

The HK$450 million three year credit for Tak Fat International is so far achieving a good response and will close syndication today (Friday). Fubon Commercial Bank, Rabobank International and Sumitomo Mitsui Banking Corp are arranging the deal.

Commitments are expected from a few more banks by the end of the week. The loan offers an all-in of around 83.1bp over Hibor.

Singapore

Banks are in the process of bidding for a S$1.5 billion five year financing for a CapitaLand and Sun Hung Kai Properties joint venture. Proceeds are to support the development of the Orchard Turn site, acquired by the consortium for S$1.38 billion.

CDL Properties' S$300 million five year term loan was signed on Wednesday. DBS Bank, HSBC and NordLB are the mandated arrangers.

South Korea

A $375 million multi-tranche leveraged buyout facility for DC Chemicals has been launched into sub-underwriting and general syndication. JP Morgan, Hana Bank and Woori Bank are the mandated lead arrangers.

The financing comprises a $150 million five year loan 'A', a $150 million seven year loan 'B' and a $75 million five year revolving credit 'C'. Term loans 'A' and 'C' are being syndicated in Asia by the joint arrangers while tranche 'B' is only targeted at US institutional investors with JP Morgan as the sole arranger and bookrunner.

Tranches 'A' and 'C' both offer margins of 170bp over six-month Libor while term loan 'B' pays 225bp. Banks underwriting $30 million or more earn a sub-underwriting fee of 60bp and a management fee of 60bp for the title of lead arranger.

In general syndication, banks have been invited to participate on three levels. Arrangers lending $20 million receive 60bp flat, co-arrangers providing $15 million gain 50bp and lead managers committing $10 million earn 40bp.

Proceeds are to support the acquisition of Columbian Chemicals by DC Chemicals (65%) and One Equity Partners (35%). The borrower will be a holding company set up by the two acquiring groups.

Senior syndication will close by January 27 while general syndication is slated to close on February 2.

Hana Bank is expected to come to the market shortly after the lunar New Year for $100 million to $200 million financing. The deal will be new money for the borrower that tapped the market twice last year.

The bank successfully raised $200 million in both July and November last year. The July facility was arranged by eight banks with the one year tranche offering an all-in of 16bp over Libor and the two year 21bp. The 364 day credit signed in November paid a margin of 7bp over Libor and was funded on a club basis.

The two syndicated transactions for Korea Gas have attracted an overwhelming response from the market, with both loans closing oversubscribed. The amounts have not been increased.

The $500 million dual tranche facility led by Bank of Nova Scotia, Citigroup, ING Bank, Sumitomo Mitsui Banking Corp and United Overseas Bank has seen six banks join at the top. The deal will not be launched into general syndication and allocations are being finalised.

Allocations for the borrower's $729.9 million loan have been finalised. The deal was oversubscribed almost two times.

Mandated lead arrangers Korea Development Bank held $65.1 million, SG Asia lent $57.8 million, BNP Paribas took $50 million and Commerzbank and Nordea Bank each provided $47 million. Mizuho Corporate Bank came on board with $46 million, Kookmin Bank, National Agricultural Cooperative Federation, National Federation of Fisheries Cooperatives and Shinhan Bank each committed $35 million, Korea Development Bank (London) provided $30 million, Korea Development Bank (Tokyo) lent $18 million and Korea Development Bank (Guangzhou) took $10 million.

Co-arrangers are Fortis Bank and Sumitomo Mitsui Banking Corp lending $46 million each, BayernLB contributing $44 million, CIC holding $36 million, Sumitomo Trust & Banking providing $27 million and Daegu Bank and Korea Exchange Bank with tickets of $10 million apiece.

Both facilities will be signed in February.

Korea Electric Power Corp secured a $297 million one year dual tranche fundraising earlier this month via Calyon and Woori Bank. The funds were provided equally on a club basis by the two banks.

Proceeds are for debt repayment and the facility can be drawn in US dollars, Japanese yen or euros.

Taiwan

Allied Material Technology signed a NT$6.8 billion five year loan agreement on January 17 with a syndicate of 15 banks. Mandated arrangers Taiwan Cooperative Bank held NT$1.1 billion and Bank of Taiwan, Hua Nan Commercial Bank and Taichung Bank each lent NT$1 billion.

Participating banks are Central Trust of China committing NT$500 million, Export-Import Bank of China, Farmers Bank of China and Land Bank of Taiwan providing NT$300 million apiece, Bank of Kaohsiung, Chang Hwa Commercial Bank, Fuhwa Bank, Shanghai Commercial & Savings Bank, Sunny Bank and Taiwan Business Bank lending NT$200 million each and China United Trust & Investment with a ticket of NT$100 million.

The loan is split into a NT$2.8 billion tranche 'A', a NT$4 billion tranche 'B' and a NT$1 billion note issuance facility, tranche 'C'. The combined ceiling for tranches 'B' and 'C' is NT$4 billion.

The margin for tranches 'A' and 'B' is 100bp over the CP rate while the NIF pays a guarantee fee of 100bp. The loan offered fees on three levels. Commitments over NT$500 million received 10bp, NT$300 million to NT$500 million gained 8bp and less than NT$300 million earned 5bp.

Proceeds are to finance the construction of a factory and to purchase machinery and equipment.

Syndication close and signing for Chi Mei Optoelectronics's NT$40 billion equivalent facility has been pushed back to after the lunar New Year as banks process their approvals. A consortium of 16 banks is arranging the deal.

Banks that have so far joined include Taishin International Bank, E.Sun Commercial Bank, Farmers Bank of China, Bank of Overseas Chinese, Bank of Kaohsiung, Tainan Business Bank, Central Trust of China, DBS Bank and Standard Chartered Bank. More than 10 additional investors are expected to join.

A NT$2.2 billion five year term loan for Chipbond Technology Corp has been launched into syndication via mandated arranger Chinatrust Commercial Bank. Proceeds are to finance the purchase of equipment and machinery.

The facility offers a margin of 60bp over the 90-day primary market CP rate. The average life is 3.5 years.

Banks have been invited to join on three levels. Co-arrangers lending over NT$400 million receive a management fee of 8bp, lead managers committing NT$300 million to NT$400 million gain 6bp and managers providing NT$200 million to NT$300 million earn 2bp.

The bank meeting was held on Wednesday and the deadline for responses is March 1.

Ford Taiwan Services' NT$4 billion 3-1/2 year facility has been postponed due to the borrower considering changes to the loan agreement. Chinatrust Commercial Bank and First Commercial Bank are the mandated arrangers.

Kailay Engineering's five year multi-tranche fundraising was inked on Monday. The loan was decreased to NT$1.2 billion from NT$2 billion.

Mandated arranger Taishin International Bank held NT$490 million while managers Chang Hwa Commercial Bank and Shanghai Commercial Savings Bank lent NT$150 million apiece, Export-Import Bank of the Republic of China took NT$120 million, Bank of Panhsin and Taiwan Business Bank provided NT$100 million each, China United Trust & Investment committed NT$50 million and Asia Trust & Investment contributed NT$40 million.

The loan comprises a NT$320 million guarantee facility, a NT$480 million term loan and a NT$400 million revolving credit. Proceeds will go towards the development of a nuclear power plant for Taipower to the north of Taipei.

Mandated arrangers DBS Bank and ING Bank launched the NT$16.2 billion multi-tranche leveraged buyout facility for Taiwan Broadband Communications into senior syndication last week. Macquarie Media Group is the sponsor.

Chinatrust Commercial Bank and Citigroup joined as mandated lead arrangers prior to launch. The financing is split into a NT$7.75 billion seven year tranche, a NT$6.75 billion 8-1/2 year portion and a NT$1.7 billion 8-1/2 year revolving credit.

The margin is linked to a debt-Ebitda ratio grid. The NT$7.75 billion tranche carries a spread of 165bp over Libor when the ratio is more than four times, steps down to 140bp when it is less than four times and further drops to 115bp when the ratio is below 3.5 times.

The NT$6.75 billion facility and the revolver pay 190bp when the ratio is more than four times, 165bp when it is below four times and 140bp when the ratio is under 3.5.

Fees to the market are on two levels. Mandated lead arrangers contributing NT$2.3 billion receive an underwriting fee of 40bp and 80bp flat while coordinating arrangers lending NT$1.62 billion earn a 20bp fee and a participation fee of 80bp.

Proceeds are to finance the Macquarie group's purchase of the cable operator from Carlyle Group. Macquarie Media will acquire 60% and Macquarie Bank 40%.

A select number of banks have been approached and responses are due by the end of the month.

A NT$1 billion 10 year financing for Tian-Yue Hotspring & Resort International has received commitments and will close by the end of the month. Taiwan Cooperative Bank is leading the facility.

Agricultural Bank of Taiwan, Asia Trust & Investment, Hsinchu International Commercial Bank and Shanghai Savings & Commercial Bank have joined. One more investor is expected to revert shortly.

The loan carries a margin of 140bp over Taiwan Cooperative Bank's one year term deposit rate and banks have been asked to participate at least NT$100 million for a management fee of 6bp. There is also a commitment fee of 15bp.

Proceeds are to finance the construction of a hotel and resort development in southern Taiwan.

Uni-President is seeking $100 million from the market via a refinancing for its Cayman President subsidiary. The loan will refinance a $149 million five year loan that was completed in November 2001 and arranged by HSBC, Sumitomo Mitsui Banking Corp and Taipei Bank.

The previous facility paid an all-in of 77.5bp over Libor. Bank proposals are due today (Friday).

Walsin Lihwa Holdings' $80 million five year term loan will complete syndication in mid-February. Citigroup is the mandated arranger.

One investor has so far joined and a handful of banks are in the process of gaining credit approval. Proceeds are to refinance existing debt and to support the borrower's investments in China.

India

Tata Technologies has secured a $60 million three year loan from Calyon and Standard Chartered Bank. The facility was pre-funded on January 5.

The loan features a spread of 30bp over Libor and a letter of comfort has been provided by Tata Motors. Proceeds are to refinance existing debt.

Syndication will take place shortly.

Loan Week is provided by Dealogic.

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