Loan week

A round up of the latest syndicated loan market news.
China

AU Optronics is seeking $300 million five to seven year money from the market for its PRC subsidiary. A number of offshore banks are said to be bidding for the deal with a mandate to come by mid-March.

A $500 million five year financing for China Development Bank was launched into syndication on Monday via sole bookrunner HSBC. Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Calyon, DBS Bank, ING Bank, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp have been brought on board as coordinating arrangers.

The deal carries a spread of 30bp over Libor and fees to the market are on three levels. Arrangers committing $25 million and above earn 35bp flat, co-arrangers providing $15 million to $24 million gain 27.5bp and senior managers lending $10 million to $14 million receive 20bp.

Proceeds are for working capital requirements. Bank presentations were held in Shanghai on Wednesday and in Beijing yesterday (Thursday). The deadline for responses is March 7.

Mandated lead arranger BNP Paribas has launched a $30 million five year dual tranche deal for borrowers Fujian Ton Yi Tinplate and Jiangsu Ton Yi, subsidiaries of Taiwan-based Uni-President Enterprises.

The facility is split between an $18 million tranche and a $12 million portion with a put option in year three. Proceeds are for refinancing and working capital.

Hong Kong

Syndication of Kerry PropertiesÆ HK$6 billion five year revolving credit has been completed and allocations are finalised. Five banks joined the 13 coordinating arrangers. Bank of China (Hong Kong) provided HK$642 million, BNP Paribas, Calyon and ICBC Asia took HK$480 million each, Citigroup, DBS Bank and Standard Chartered Bank held HK$401 million apiece, Bank of Communications and Mizuho Corporate Bank each committed HK$400 million, Bank of Tokyo-Mitsubishi UFJ contributed HK$350 million, Agricultural Bank of China pledged HK$250 million, and HSBC and Sumitomo Mitsui Banking Corp absorbed HK$205 million apiece.

Joining as arrangers are Wing Lung Bank with HK$250 million, and Bangkok Bank, Bank of Nova Scotia and China Construction Bank with HK$200 million each. Tai Fung Bank came in as a senior manager with a ticket of HK$100 million.

Signing will be held soon.

Mandated lead arrangers Barclays Capital, Citic Ka Wah Bank, Export Development Canada, Hang Seng Bank and HVB launched the $150 million five year credit for Sino-Forest Corp into general syndication on Monday.

The loan is being offered at three levels. Lead arrangers contributing $10 million or more earn an all-in yield of 140.5bp, arrangers committing $7.5 million and above receive 138.4bp and co-arrangers with holds over $5 million gain 136.3bp. A bank presentation will be held on February 27 and a site visit on March 2. Banks have until March 17 to respond.

India

The $75 million 364 day term loan for Andhra Bank has received a $5 million ticket from Banca Nazionale del Lavoro in syndication. Banc of America Securities Asia, Bank Muscat, Calyon, DBS Bank, Natexis Banques Populaires, RZB-Austria, BayernLB and DZ Bank are the mandated lead arrangers.

The loan offers an all-in yield of 32bp over Libor and there is a greenshoe of $25 million in the event of an oversubscription.

ICICI BankÆs $250 million 364 day financing has secured more commitments and should complete syndication shortly. ABN AMRO, Banc of America Securities Asia, BNP Paribas, Calyon, Citigroup, DBS Bank, DZ Bank, HSBC, Lloyds TSB Bank, Natexis Banques Populaires, RZB-Austria and Standard Chartered Bank are leading the facility.

Bank Austria and Banca Nazionale del Lavoro are the latest to join with tickets of $10 million each. Bank of China joined earlier with a commitment of $10 million as did WGZ Bank with a hold of $5 million. Up to five more institutions are processing their credit approvals and are expected to revert soon.

Indian Railway Finance Corp has mandated Calyon to arrange a $125 million five year loan that is denominated in Yen. Proceeds will be used to purchase rolling stock. The borrower last raised a $75 million 2-1/2 year fundraising in September 2005. Barclays Capital, Calyon, HSBC and State Bank of India lead arranged the facility which paid a top level all-in of 36.9bp over Libor.

Two more banks - State Bank of India Canada (as sub-underwriter) and Hua Nan Commercial Bank Singapore (in general syndication) - have joined the $100 million 3-1/2 year term loan for Power Finance Corp.

Calyon, DBS Bank, Mizuho Corporate Bank and State Bank of India are the lead arrangers.

Mandated arranger HSBC has launched a $50 million five year term loan for SREI Infrastructure Finance into syndication.

The deal is priced at 170bp over Libor and banks have been invited to participate on three levels. Arrangers lending $10 million or more gain a management fee of 90bp, co-arrangers providing $5 million to $9 million receive 75bp and senior managers taking $2 million to $4 million get 60bp. The non-bank financial institution will use the proceeds to fund the import of infrastructure equipment that will be leased for use in infrastructure projects. Bank responses are due by March 10.

Videocon IndustriesÆ $50 million 3-1/2 year facility was launched into syndication last Friday via mandated lead arrangers Chinatrust Commercial Bank, Natexis Banques Populaires, RZB-Austria and Shanghai Commercial & Savings Bank. The deal was funded by the lead banks at the end of January.

The loan carries a margin of 175bp over Libor and fees to the market are on three levels. Arrangers lending $7.5 million earn 75bp, co-arrangers providing $5 million to $7 million receive 62.5bp and lead managers contributing $3 million to $4 million gain 50bp.

A limited number of banks have been invited to participate in syndication. The facility is secured by receivables that are insured by Coface. Banks have until March 1 to respond.

Joint mandated lead arrangers Calyon and Standard Chartered Bank have launched VSNL NetherlandsÆ $220 million five year acquisition loan into sub-underwriting. Parent company, Videsh Sanchar Nigam (VSNL) is acting as guarantor.

The facility offers a spread of 46bp over Libor. Banks joining as mandated lead arrangers with tickets of $30 million or above receive an underwriting fee of 20bp and a participation fee of 40bp, leading to an all-in of 58bp.

The leads had pre-funded the loan on February 3. Proceeds are for the acquisition of Teleglobe International Holdings and its operations or for general corporate purposes.

Malaysia

Sole lead arranger Oversea-Chinese Banking Corp has received a few commitments on AmInternational (Labuan)Æs $75 million one year term loan.

Syndication is expected to close next week. Banks have been asked to commit $15 million as lead arrangers, $10 million as arrangers, $7.5 million as co-arrangers and $5 million as senior managers. Proceeds are for general corporate purposes.

The borrower last raised a $75 million one year facility via mandated lead arrangers DBS Bank, Natexis Banques Populaires and Oversea-Chinese Banking Corp in December 2004.

Mandated lead arrangers ABN AMRO, Bank of Tokyo-Mitsubishi UFJ, Citigroup and Standard Chartered Bank are set to launch a $300 million five year facility for Bumiputra-Commerce Bank into syndication imminently.

The bank last tapped the market in August 2004 via a $150 million 364 day fundraising that was led by Citigroup. The deal paid an all-in of 16.5bp over Libor in general syndication.
Proceeds are for working capital requirements.

A M$150 million seven year fundraising for Lingui Developments is in the market via mandated arrangers HSBC and Oversea-Chinese Banking Corp. Proceeds are to refinance existing debt.

Malayan BankingÆs $300 million five year term loan was launched into general syndication this week. Bookrunners Barclays Capital and Citigroup were joined at the top by mandated lead arrangers Bank of Tokyo-Mitsubishi UFJ, BayernLB, Calyon, Fortis Bank, KBC Bank and LBBW.

Commitments have already been received from Bank of China (Kuala Lumpur) and Bank of China (Hong Kong) at the general level. The deal offers a margin of 18bp over Libor.

Fees to the market are on two tiers. Arrangers lending $20 million or more earn a front-end fee of 10bp while co-arrangers with tickets of $10 million and above receive 7.5bp. Banks have until the end of next week to respond.

The $755.8 million multi-tranche financing for Titan Capital reached financial close on Tuesday. A total of 14 banks joined bookrunner Standard Chartered Bank in syndication.

The loan comprises a $251.3 million term loan, a $196 million revolver and a $309.5 million working capital facility. A total of $13.7 million was repaid by the borrower in December last year.

For the term loan and revolving credit tranches, mandated lead arrangers Standard Chartered Bank held $119.7 million, RHB Bank (L) took $111.5 million and WestLB lent $58.2 million. Bayerische Hypo-und Vereinsbank (Singapore) joined as a lead arranger with a commitment of $40 million while Sumitomo Mitsui Banking Corp (Labuan) provided $29.1 million for the title of co-arranger.

Lead managers include Calyon providing $15 million, Oversea-Chinese Banking Corp (Labuan) and Shanghai Commercial & Savings Bank (Offshore Banking) lending $10 million each, Chang Hwa Commercial Bank (Singapore), First Commercial Bank (Singapore) and Hua Nan Commercial Bank (Singapore) committing $9.7 million apiece and Bank of East Asia (Labuan) and Cathay United Bank (Labuan) with tickets of $5 million each.

For the working capital facility, Standard Chartered Bank lent $125 million, Malayan Banking took $171.3 million and Bank Muamalat Malaysia contributed $13.2 million.

Singapore

Property developer Tanglin Residential has raised S$185 million via Standard Chartered Bank and United Overseas Bank. The four year loan was provided equally on a club basis. Proceeds are to finance the acquisition of property and land and to finance construction costs.

South Korea

Mandated lead arranger Korea Development Bank launched a Ç100 million five year financing for Hankook Tire Hungary early last week. Parent company, Hankook Tire is acting as guarantor.

The bullet facility offers a spread of 55bp over six-month Euribor. Co-arrangers lending Ç10 million to Ç20 million earn an upfront fee of 85bp while senior managers providing less than Ç10 million gain 75bp. Proceeds will be used to build a new factory in Dunaujvaros, Hungary. Banks have until March 10 to revert.

Korea Development Bank has completed a $200 million three year financing via Barclays Capital and Citigroup. The club deal was signed on February 15. The borrower last tapped the market in April 2004 via a $200 million credit that was led by a group of eight banks. Proceeds are for working capital requirements.

ABN AMRO has been mandated to lead arrange a $100 million three year loan-style FRN for Korea Zinc. The borrower successfully raised $50 million in May last year via a three year loan that was arranged by Kookmin Bank. The deal offered an all-in yield of 80bp over Libor.

Taiwan

Chailease Finance is in the market with a NT$2 billion three year term facility that is being lead arranged by Mizuho Corporate Bank. Hua Nan Commercial Bank has joined as equal status arranger.

The loan is priced at 70bp over the primary CP rate. Co-arrangers holding NT$300 million or above earn a participation fee of 15bp while lead managers lending NT$100 million to NT$250 million receive 9bp. Proceeds are for working capital and to refinance a NT$1.8 billion deal signed in July 2003.

Banks have until early next month to revert and if there is an oversubscription in syndication, a NT$500 million greenshoe can be exercised.

Chi Mei OptoelectronicsÆ NT$42 billion equivalent seven year transaction is set to close shortly. The 15 mandated lead arrangers are waiting for Taiwan Cooperative Bank to get final approval.

The loan is likely to be increased to at least NT$57 billion due to the large number of banks that have joined in syndication û 14 to date. Signing is targeted in the week of March 6.

Bank of Taiwan, BNP Paribas, Calyon, Cathay United Bank, Chang Hwa Commercial Bank, Chiao Tung Bank, China Development Industrial Bank, Chinatrust Commercial Bank, First Commercial Bank, Fuhwa Bank, HSBC, Hua Nan Commercial Bank, Land Bank of Taiwan, Ta Chong Commercial Bank and Taipei Fubon Commercial Bank are the MLAs.

E Sun Commercial Bank has joined Chipbond TechnologyÆs NT$2.2 billion five year fundraising, which is lead arranged by Chinatrust Commercial Bank.

The facility pays a top level all-in of 62.3bp over the 90-day primary CP rate to banks joining as co-arrangers with holds of NT$400 million or more. Funds will be used for a plant expansion. Responses are due in early March.

Evergreen Marine has mandated Mizuho Corporate Bank and Taipei Fubon Commercial Bank to arrange a NT$3 billion five year term loan. The borrower was last in the market with a NT$4 billion five year dual currency credit in January, which was lead arranged by Taishin International Bank. Pricing on that facility was 50bp over the 90-day primary CP rate and 57.5bp over Libor for the NT$2 billion revolver and 55bp over the guarantee fee for the NT$2 billion guarantee facility. Proceeds were for working capital purposes.

The NT$2.2 billion dual tranche five year deal for Grand Pacific Petrochemical should complete syndication by Monday. Sole lead arranger Chinatrust Commercial Bank has received 10 commitments to date. Asia Trust & Investment, Chang Hwa Commercial Bank, China United Trust & Investment Corp, Fuhwa Bank, Hsinchu International Bank, Hua Nan Commercial Bank, Hwa Tai Bank, International Commercial Bank of China, Sunny Bank and Taipei Fubon Commercial Bank have joined, while four more banks are processing approvals.

King Yuan Electronics is tapping the market for a NT$6.5 billion five year term loan and a large number of banks are said to be pitching for the deal. The borrower raised NT$2.6 billion in September last year via International Commercial Bank of China and saw participation from 10 banks. Bids are due by the end of the month.

A NT$700 million 3-1/2 year loan for Kuang Tai Metal Industrial was signed last week. Mandated lead arranger Chinatrust Commercial Bank committed NT$100 million. Co-arrangers Central Trust of China, First Commercial Bank and Ta Chong Bank provided NT$60 million apiece.

Lead managers Taishin International Bank lent NT$50 million while Bank of Panshin, Hsinchu International Bank, Jih Sun International Bank and Taipei Fubon Commercial Bank held NT$40 million each. Rounding up the group as managers were E Sun Commercial Bank, Hua Nan Commercial Bank, International Bank of Taipei, Shanghai Commercial & Savings Bank, Sunny Bank, Taichung Commercial Bank and Tainan Business Bank with NT$30 million apiece.

The loan pays a margin of 123bp over the primary CP rate. Proceeds are to refinance a NT$700 million three year deal signed in February 2004 and for working capital.

Powerchip Semiconductor is looking to raise a NT$30 billion five year loan. Banks sent in bids on Tuesday and expect a mandate by early March. Up to four groups have submitted proposals, with Hua Nan Commercial Bank forming a consortium of 10 banks. Funds will be used to purchase equipment worth NT$60 billion. The borrower bought a plant from Macronix International and will use the new facility to expand its memory chip production.

Syndication of Taiwan Broadband CommunicationsÆ NT$16.2 billion multi-tranche leveraged buyout facility has been completed and allocations are being finalised. Chinatrust Commercial Bank, Citigroup, DBS Bank and ING Bank are the mandated lead arrangers.

The NT$600 million dual tranche deal for Taiwan Hopax Chemicals will be signed soon. Mandated lead arrangers International Commercial Bank of China committed NT$300 million while Taishin International Bank contributed NT$150 million. Fuhwa Bank came in with NT$100 million and Bank of Overseas Chinese joined with NT$50 million. Proceeds will be used to expand the borrowerÆs chemical plant and for working capital.

The NT$2 billion five year deal for Tonho Development has been decreased to NT$1.5 billion since the borrower does not need to use the entire facility. Bank of Taiwan is the mandated arranger with Bank of Kaohsiung and Taiwan Business Bank joining the syndicate so far. Signing will be held in mid-March.

Ton Yi Industrial has awarded a NT$2 billion five year mandate to Bank of Taiwan and Ta Chong Bank. The deal pays a spread of 60bp over the one year CP deposit rate and has a commitment fee of 20bp.

Syndication is expected to launch soon and will be offered on three levels. Co-arrangers lending NT$300 million or above earn a participation fee of 10bp, lead managers providing NT$200 million to NT$299 million gain 6bp and managers holding NT$100 million to NT$199 million receive 3bp. Proceeds are for debt repayment and working capital.

The $80 million five year financing for Walsin Lihwa Holdings should complete syndication by today (Friday). Citigroup is leading the deal. Commitments have so far been received from 10 banks with a handful set to revert shortly. The loan is likely to be oversubscribed.

Syndication of the NT$8.8 billion facility for Wan Da Tong Enterprise is expected to be completed by next month. Lead arranger Taiwan Cooperative Bank has received commitments from International Bank of Taipei, Land Bank of Taiwan and Sunny Bank while Cathay United Bank, Taichung Commercial Bank, Taiwan Business Bank and Union Bank of Taiwan are in credit.
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