Loan week

A round up of the latest syndicated loan market news.

Austar United Communications has short-listed seven banks to lead arrange a A$600 million loan. The banks include ANZ Investment Bank, BNP Paribas, Calyon, Commonwealth Bank of Australia, ING Bank, JP Morgan and National Australia Bank. Proceeds are to refinance an existing A$290 million facility that was signed in October 2004 and led by Deutsche Bank and JP Morgan. A formal mandate is expected to be announced soon.

A A$60 million five year management buyout facility for MichelÆs Group Australia was signed on April 28. ANZ led the financing while Rothschild and St George joined as lead managers. Proceeds are to support the managementÆs acquisition of a 100% stake in MichelÆs Patisserie.

Millmerran Power PartnersÆ A$1.025 billion multi-tranche facility is signing today (Friday) with a total of eleven banks participating. The facility consists of a five year A$90m revolver and six and 12 year term loans of A$467.5 million each. Proceeds are to repay existing debt.

Mandated lead arrangers are ANZ Investment Bank and Mizuho Corporate Bank lending A$100 million each, Banca Intesa, Calyon, RBS Australia, Sumitomo Mitsui Banking Corp, United Overseas Bank and WestLB providing A$97.5 million each, Fortis Bank offering A$90 million, and HSBC and KBC Bank committing A$75 million apiece.


Air ChinaÆs $550 million 10 year aircraft financing was inked on May 11. A total of 15 banks are participating in the transaction.

The loan is split into a $447 million tranche that will fund the purchase of five Airbus A319-100 and six Airbus A330-200 commercial aircraft and a $103 million portion to finance three Boeing B737-700 airliners.

For the Airbus tranche, bookrunner DBS Bank (Hong Kong) held $100 million while coordinating arrangers Bank of China (Hong Kong) and China Development Bank lent $70 million each and Bank of Tokyo-Mitsubishi UFJ took $42 million.

Joining as arrangers are Bank of Communications (New York) and HSBC France lending $32.5 million apiece while co-arrangers with commitments of $20 million each include Agricultural Bank of China (Hong Kong), China Construction Bank (Singapore), Malayan Banking, Shanghai Commercial & Savings Bank (Offshore Banking) and Sumitomo Trust & Banking (Singapore).

For the Boeing tranche, DBS Bank (Hong Kong) held $28 million and arrangers Arab Bank (Singapore), Bank of Tokyo-Mitsubishi UFJ and WestLB (Shanghai) had tickets of $25 million apiece.

China Development BankÆs $700 million fundraising was signed on May 10. A total of 20 lenders joined bookrunner HSBC in syndication.

Coordinating arrangers HSBC held $60 million and Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Calyon, DBS Bank, ING Bank, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp lent $50 million apiece. Arrangers include Bank of China (Hong Kong) committing $40 million, WestLB providing $35 million, Bank of Montreal, China CITIC Bank and United Overseas Bank contributing $30 million each and BayernLB and KBC Bank lending $25 million apiece.

Joining as co-arrangers are Sanpaolo IMI taking $20 million and Oversea-Chinese Banking Corp with a ticket of $15 million. Bangkok Bank, Bank of China, Wing Lung Bank and Yamaguchi Bank took the title of senior manager with holds of $10 million each.

A Rmb400 million five year loan for Xiamen SM City and SM Shopping Centre (Chengdu) has so far received at least three commitments in syndication. Standard Chartered Bank is leading the deal.

The facility is split into a Rmb100 million tranche for Xiamen SM City and a Rmb300 million portion for SM Shopping Centre (Chengdu). Banks have been invited to join with commitments of Rmb135 million to be split pro-rata across the two tranches.

Hong Kong

Allocations for Citic PacificÆs HK$7.2 billion dual-tranche loan have been finalised. Mandated arrangers Agricultural Bank of China (Hong Kong), Bank of China (Hong Kong), Bank of Communications (Hong Kong), Bank of Tokyo-Mitsubishi UFJ, BayernLB (Hong Kong), BNP Paribas, Calyon, CITIC Ka Wah Bank, Citigroup, DBS Bank, Hang Seng Bank, HSBC, ICBC Asia, Mizuho Corporate Bank, Rabobank International (Hong Kong), Royal Bank of Scotland, Standard Chartered Bank (Hong Kong) and Sumitomo Mitsui Banking Corp committed HK$376.67 million each.

Senior manger Tai Fung Bank pledged HK$120 million while Bank of East Asia, Liu Chong Hing Bank and Wing Lung Bank lent HK$100 million each. Signing was held on April 27.

Foxhill InvestmentsÆ HK$1.6 billion three year facility has reached financial close. More than five banks joined mandated lead arranger Standard Chartered Bank in syndication. Proceeds are to finance Macquarie Global Property AdvisorsÆ acquisition of Vicwood Plaza from Morgan Stanley. The deal was funded in March.

A HK$350 million three year term loan for Gold Peak Industries is progressing in syndication. China Construction Bank and HSBC are leading the deal.

The facility carries a margin of 66bp over Hibor and banks have been invited to participate on three tiers. Arrangers committing HK$40 million or more gain a front-end fee of 65bp, senior managers providing HK$30 million to HK$39 million gain 60bp and managers with tickets of HK$20 million to HK$29 million receive 55bp.

Proceeds are to refinance existing debt and to provide for general corporate requirements. Bank responses are due towards the end of the month.

Syndication of Ocean ParkÆs HK$4.16 billion 15 year dual tranche fundraising has been completed. Bank of China, DBS Bank and HSBC are the mandated lead arrangers and allocations are being finalised.

The HK$3.5 billion five year term loan for Shanghai Industrial Investment Holdings (SIIC) is progressing in syndication with banks expected to revert next Monday.

The deal carries a margin of 35bp over Hibor and banks have been invited to join on three levels. Coordinating arrangers providing HK$180 million or above earn 35bp, arrangers committing HK$125 million to HK$175 million receive 25bp and senior mangers contributing HK$75 million to HK$120 million get 15bp.

Proceeds will be used to refinance a $300 million facility signed in October 2001. That facility featured a margin of 72.5bp over Libor and was increased from $250 million.

Sun Hung Kai REITÆs HK$3.1 billion five year dual-tranche loan, now known as Sun Millennium REIT, is expected to close as a club. Bank of China, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Calyon, HSBC, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp are the mandated lead arrangers. The deal is split into a HK$3 billion term facility and a HK$100 million revolver, both offering a spread of 44bp over Hibor. Proceeds will be used for the acquisition of real estate.

Mandated arrangers ABN AMRO and Deutsche Bank have launched Xinhua FinanceÆs $80 million five year term loan into syndication. The deal is priced at 275bp over Libor and fees to the market are on two levels. Banks joining as arrangers providing $10 million or above earn 85bp for a top level all-in of 292bp. Those joining as co-arrangers with $5 million to $9 million receive 65bp for an all-in of 288bp. Proceeds are for working capital requirements and acquisition purposes. Bank responses are due by May 26.

Essar SteelÆs $120 million five year, one-month term facility was signed yesterday (Thursday). Barclays Capital and State Bank of India are the mandated lead arrangers.

Joining as lead managers are Arab Investment Bank, Bank Negara Indonesa (Singapore), Export Development Canada, Indian Bank (Colombo), Indian Bank (Singapore), Indian Overseas Bank (Hong Kong) and KfW.

The facility pays a margin of 255bp over Libor and fees are on three tiers. Arrangers contributing $15 million or above earn 70bp for a top level all-in of 269bp. Co-arrangers committing $10 million to $14 million get 60bp for an all-in of 267bp while lead managers providing $5 million to $9 million receive 50bp for an all-in of 265bp.

Allocations should be finalised soon.

Mandated arrangers Citigroup and Merrill Lynch are in the process of building the arranger group for Flextronics Software SystemsÆ $360 million seven year multi-tranche leveraged buyout facility. Kohlberg Kravis Roberts (KKR) is the financial sponsor.

The loan comprises a $315 million term loan, a $35 million Indian rupee equivalent revolving credit and a $10 million revolver. The deal features amortisation with an average life of 5.8 years.

The margin is linked to a debt-to-EBITDA ratio grid with an initial spread of 275bp over Libor. Banks have been invited to join in sub-underwriting for fees ranging from 100bp to 125bp flat.

Proceeds are to partially support KKRÆs $900 million acquisition of Flextronics Software Systems. Flextronics International will retain a 15% equity stake. The lead banks will hold one-on-one meetings in the week commencing May 22.

The deadline for Jindal Steel & PowerÆs $75 million yen equivalent dual tranche fundraising has been extended as banks process their approvals. ICICI Bank and ING Bank are the mandated lead arrangers. All-in pricing is 115bp over Libor for underwriters and 112bp for top level arrangers in general.

IndiaÆs largest power utility company, Reliance Energy, is expected to award the mandate for a $500 million five year loan early next week. Eight banks have been shortlisted. The facility will be used to fund the borrowersÆ capital expenditure requirements.

Reliance EnergyÆs last visit to the loan markets was in September 2005 when it borrowed $100 million. That facility was arranged by BNP Paribas, Calyon, Citigroup, HSBC, Mizuho Corporate Bank, Rabobank and Standard Chartered. It was priced at 50bp over Libor.

WockhardtÆs $250 million five year facility has so far secured five commitments in syndication. Bank of Baroda, Barclays Capital, Citigroup, ICICI Bank, Rabobank International and State Bank of India are the mandated lead arrangers. The deal offers an all-in of 117bp over Libor.


Allocations for Indofood Sukses MakmurÆs $100 million two year fundraising have been finalised and signing will be held shortly. A total of 13 banks are participating in the deal.

Mandated lead arrangers Bank of Tokyo-Mitsubishi UFJ, Bumiputra-Commerce Bank, Chinatrust Commercial Bank (Offshore Banking), HVB, ING Bank, NordLB and Rabobank International Indonesia lent $10 million each. Arrangers include Bank Mizuho Indonesia, Moscow Narodny Bank and Sumitomo Trust & Banking (Singapore) providing $7.5 million apiece while Bank Danamon Indonesia and Bank UOB Indonesia held $5 million each.

Federal International FinanceÆs $75 million dual-tranche facility has secured its first commitment from Erste Bank with a $15 million ticket. ABN AMRO and FMO are leading the deal. The loan offers an all-in of 190bp over Libor.


Softbank CorpÆs Ñ1.28 trillion leveraged buyout facility for VodafoneÆs Japanese business was completed late last month via a syndicate of 17 banks. The financing comprises a Ñ1.18 trillion bridge loan and a Ñ100 billion revolving credit.

Mandated lead arrangers Mizuho Corporate Bank lent Ñ160 billion, Deutsche Bank held Ñ136 billion, Sumitomo Mitsui Banking Corp took Ñ109 billion, Calyon and WestLB provided Ñ100 billion each and Citibank and Goldman Sachs committed Ñ95 billion apiece. Norinchukin Bank joined as an underwriter with a ticket of Ñ160 billion.

Lenders include Aozora Bank, Bank of Tokyo Mitsubishi UFJ, Royal Bank of Scotland and Shinsei Bank contributing Ñ50 billion apiece and Chuo Mitsui Trust & Banking, Mitsubishi UFJ Trust & Banking Corp, ING Bank, Societe Generale and Sumitomo Trust & Banking holding Ñ25 billion each.

Orchard TurnÆs S$1.56 billion five year dual tranche financing is progressing in syndication and is set to reach financial close by May 19. Bank of Tokyo-Mitsubishi UFJ, Calyon, Citigroup, DBS Bank, Mizuho Corporate Bank, Standard Chartered Bank, Sumitomo Mitsui Banking Corp and United Overseas Bank are the mandated lead arrangers.

The loan comprises a S$960 million term facility and a S$600 million revolving credit. The margin is 50bp over Sibor and fees to the market are on four levels. Lead arrangers contributing S$100 million or more gain 20bp flat, arrangers lending S$75 million to S$99 million receive 15bp, lead managers committing S$50 million to S$74 million get 10bp and senior managers providing S$25 million to S$49 million earn 5bp. Proceeds are to support the development of the Orchard Turn site in Singapore.

A $2.6 billion dual tranche fundraising for PSA International has been launched into senior syndication. Barclays Capital, DBS Bank and Royal Bank of Scotland are leading the deal.

The loan is split equally into three year and seven year term loans. Sub-underwriters earn an all-in yield of 15bp over Libor for the three year loan and 20bp for the seven year portion for the title of mandated lead arranger. Responses are due at the end of May.

South Korea

Market talk is that Hyundai Engineering & Construction has mandated Standard Chartered Bank to lead arrange a $100 million three year loan-style FRN. The deal features a call and put option at the end of the second year. This is the borrowerÆs first time in the loans market since 1997 and proceeds will be used to finance overseas projects.


All Win International Finance CorpÆs NT$4 billion 12 year aircraft financing is progressing in syndication. International Commercial Bank of China is leading the deal.

Bank of Taiwan and Farmers Bank of China are the first investors to join with tickets of NT$500 million each. Proceeds are to finance the purchase of an Airbus A330 commercial aircraft.

Asia Vital ComponentsÆ NT$3 billion five year revolver is receiving a strong response in syndication. AVC International is acting as a guarantor. Mandated arrangers and bookrunners are Bank of Taiwan, Chinatrust Commercial Bank, First Commercial Bank and Taiwan Cooperative Bank.

The facility carries a margin of 100bp over the 90-day secondary CP rate and fees to the market are on two levels. Banks joining as co-arrangers committing NT$300 million or above receive 5bp for a top level all-in of 101bp. Those joining as lead managers providing NT$150 million to NT$299 million earn 3bp for an all-in of 100.6bp.

Repayment will be made by five unequal instalments with a one-year grace period. Proceeds will be used for debt repayment and working capital purposes. Syndication should close next week and signing is targeted for May 23.

INVISTA Far Eastern Petrochemicals has successfully raised NT$3.5 billion from the market via a five year term loan arranged by Chiao Tung Bank. The lead bank held NT$700 million.

Participants are First Commercial Bank, Hua Nan Commercial Bank and International Commercial Bank of China lending NT$300 million each, China United Trust & Investment Corp and Industrial Bank of Taiwan committing NT$250 million apiece, Chang Hwa Commercial Bank absorbing NT$170 million, Bank of Overseas Chinese contributing NT$160 million and Bank of Taiwan, Hsinchu International Bank, Land Bank of Taiwan and Shanghai Commercial & Savings Bank taking NT$150 million each. Taiwan Business Bank and Bank SinoPac also joined with a hold of NT$120 million apiece as did Chinese Bank with NT$80 million, Asia Trust & Investment Corp and Fuhwa Bank with NT$60 million each and Central Trust of China for NT$30 million.

Allocations for Ford Taiwan ServicesÆ 3 + year revolving credit have been finalised. The facility has been upsized to NT$2.8 billion from NT$1.5 billion. Mandated arrangers Chinatrust Commercial Bank and First Commercial Bank pledged NT$500 million each.

Bank of Kaohsiung, Bank of Overseas Chinese, Central Trust of China, Hsinchu International Bank, International Bank of Taipei and Shin Kong Commercial Bank took NT$200 million apiece. Far Eastern International Bank and Shanghai Commercial & Savings Bank committed NT$150 million each while three others û E Sun Commercial Bank, Hua Nan Commercial Bank and KingÆs Town Bank û lent NT$100 million each.

The facility offers a margin of 62.5bp over the secondary CP rate and has a commitment fee of 12.5bp. Proceeds will be used for working capital purposes. Signing is scheduled on May 23.

Powerchip Semiconductor CorpÆs NT$30 billion dual-tranche term facility has received commitments from Agricultural Bank of Taiwan, EnTie Commercial Bank, International Bank of Taipei, Shin Kong Commercial Bank and Ta Chong Bank.

The 10 mandated lead arrangers and bookrunners are Bank of Taiwan, Cathay United Bank, Chang Hwa Commercial Bank, Chinatrust Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank, Industrial Bank of Taiwan, Land Bank of Taiwan, Taipei Fubon Commercial Bank and Taiwan Cooperative Bank. Around 19 more banks are still awaiting approvals.

The facility comprises a NT$4 billion five year tranche and a NT$26 billion 6 + year portion, both featuring a spread of 70bp over the primary CP rate. There is a commitment fee of 5bp. Repayment will be made quarterly with a two-year grace period. Proceeds will be used for construction purposes and to buy machinery. Bank responses are due by May 30.

Syndication of Rich Forest DevelopmentÆs NT$2 billion multi-tranche financing has been completed. A total of 11 lenders are participating in the transaction.

The loan consists of a NT$1.91 billion 15 year term loan and NT$30 million and NT$60 million bilaterals provided by Chang Hwa Commercial Bank.

For the syndicated portion, mandated lead arrangers Cathay United Bank, Chang Hwa Commercial Bank and Hua Nan Commercial Bank held NT$300 million each. Participating banks include Bank of Kaohsiung, EnTie Commercial Bank, Export-Import Bank of the Republic of China and Hsinchu International Bank contributing NT$150 million apiece, China United Trust & Investment Corp, Taichung Commercial Bank and Shin Kong Commercial Bank taking NT$110 million apiece and Shanghai Commercial & Savings Bank with a ticket of NT$80 million. Signing is on May 24
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