1. Giant Interactive
invites banks to
underwrite LBO
At least five banks have been invited to underwrite an
around US$1bn leveraged buyout financing backing the
US$1.5bn delisting of US-traded Chinese online games
developer and operator Giant Interactive Group Inc
(巨人網絡集團有限公司), sources said.
BNP Paribas, China Minsheng Bank, Credit Suisse, Deutsche
Bank and JP Morgan are among the banks looking to provide the
underwriting commitment, sources said.
According to sources, more bank names could be revealed before
Chinese NewYear.
The leverage on the deal is around four times debt-to-EBITDA,
one source said.
Other terms of the deal are still being finalised.
Giant Interactive posted EBITDA of Rmb1.64bn (US$271m) for
the last 12 months, based on EBITDA margins of around 71%,
according toThomson Reuters.
At the end of September the company had cash of around
Rmb3.71bn on its balance sheet.
The buyout represents an offer of US$11.75 per share by
chairman ShiYuzhu and Baring Private Equity Asia for the 52.8%
of Giant they do not already own.
The offer price represents a 16% premium to Giant Interactive’s
November 22 close on the NewYork Stock Exchange and values
the company at around US$2.82bn.
It is the largest attempted take-private deal involving a US-listed
Chinese company since the highly successful US$3.7bn leveraged
buyout of Chinese display advertising firm Focus Media Holding
Ltd in March last year.
The new owners of Focus Media, including Carlyle Group and
Fosun International, recouped a big portion of their investment
with a dividend recapitalisation six months later.
Chinese lenders hold the key to the success of the financing, as
was evident in Focus Media’s US$1.725bn LBO financing in
March and subsequent dividend recap and amendment exercise
in October. China Minsheng Bank committed US$175m to
the March financing and a whopping US$875m to the October
recap.
Giant Interactive chairman Shi controls Shanghai Giant Lifetech,
which owns 3.6% of China Minsheng Bank and 1.3% of Hua
Xia Bank and is the fourth- and ninth-largest shareholder in
those lenders respectively.
Since launching its first flagship game, ZT Online, in January
2006, Giant Interactive has expanded its offerings. It came out
with a sequel, ZT Online 2, towards the end of 2010, launched
a new flagship game called World of Xianxia last year, and is
preparing to hit the market in 2014 with a new martial arts game
named Jianghu.
It is aiming for a couple of launches every year and currently
there are three to four other games in the pipeline. It is also
diversifying into mobile and web games. – SA, PC, JP
basis pointbasis pointA R e u t e r s L P C P u b l i c a t i o n I s s u e 1 0 6 0 • 2 7 J a n u a r y 2 0 1 4
•
Hong Kong
Citic Pacific returns for HK$5bn loan [P.3]
•
India
Tata Comm mandates trio for US$240m refi [P.8]
•
Japan
Lixil to refinance bridge for Grohe buy [P.9]
•
Malaysia
SapuraKencana raising US$5.35bn loan [P.10]
•
Singapore
SingTel seeks S$1.8bn refinancing [P.12]
•
Taiwan
Banks eye US$1bn TCC acq loan [P.14]
3. Issue 1060 • 27 January 2014
3
China offshore oil and gas firm CNOOC Ltd (中國海洋石油
有限公司) is asking for a one-year tenor on its US$2bn loan to
take out the US$6bn 12-month bridge financing from February
2013 which backed its US$15.1bn acquisition of Canada’s Nexen
Inc, sources said.
The world’s biggest energy explorer by market value had
previously asked banks to submit proposals for one-, three- or
five-year tenors (story December 12). Banks are invited to join
the bullet loan at an all-in of 80bp via a margin of 75bp over
Libor and a 5bp upfront fee.There is no commitment fee.
Proceeds will be borrowed via Nexen Energy ULC and
guaranteed by CNOOC.
To repay the bridge, the borrower is also using US$1bn of
internal cash and US$3bn from a bond issue.
Last February, the US$6bn bridge was oversubscribed to
more than US$20bn by 20 banks. The 20 existing lenders are:
Agricultural Bank of China, Bank of China, China Construction
Bank, China Development Bank, Industrial & Commercial
Bank of China, ANZ, Bank of America Merrill Lynch, Bank of
Montreal, Bank of Nova Scotia, Citigroup, Commonwealth Bank
of Australia, Credit Suisse, DBS Bank, Deutsche Bank, HSBC,
Societe Generale, Sovereign Bank, UBS, UOB and Westpac
Banking Corp.
The bridge paid an upfront fee of 25bp. The margin opened at
80bp over Libor for the first six months, before stepping up to
100bp for the next three months and to 120bp thereafter.
In September, CNOOC sealed a US$3bn financing for its
investment in the Queensland Curtis liquefied natural gas project.
That deal was split into a US$2bn one-year tranche with pricing
in the sub-80s and a US$1bn five-year tranche at around 140bp.
The 11 banks that joined were ANZ, BAML, BOC, Barclays,
CCB, Citi, CBA, Goldman Sachs, HSBC, Mizuho Bank and
Sumitomo Mitsui Banking Corp.
CNOOC is rated Aa3/AA-/A+ by Moody’s/S&P/Fitch. – JP
Nexen Energy ULC
Guarantor: CNOOC Ltd
Facility type: Term loan
Amount: US$2bn
Maturity: 1 year
Margin: 75bp over Libor
Repayment: Bullet
Commitment fee: Nil
Upfront fee: 5bp
Mandated lead arranger: Self-arranged
Status: In process
Citic Pacific Ltd (中信泰富) has returned to the market for a
HK$5bn (US$645m) five-year bullet loan, sources said.
Banks are now invited to form a mandated lead arranger group,
after which general syndication is expected. Each bank is asked to
commit around HK$1bn.
Sources said the borrower is asking for at least HK$5bn and the
deal size could be bigger depending on response.
According to sources, the all-in is around 275bp via a margin of
255bp over Hibor.
Proceeds are for refinancing and general working capital.
Last May, the Chinese conglomerate raised a US$330m four-
year bullet loan which was increased from US$200m. That
deal, targeted at Taiwanese lenders, was led by Taipei Fubon
Commercial Bank, Mega International Commercial Bank and
Taiwan Cooperative Bank. It paid a top-level all-in of 275bp via a
margin of 238bp over Libor in general syndication.
Citic Pacific, controlled by China’s state-owned CITIC Group, is
rated Ba2 by Moody’s.
CITIC Ltd, also under CITIC Group, got a US$1bn five-year
bullet loan at year-end which paid a top-level all-in of 173bp via
a margin of 165bp over Libor.
Meanwhile, CITIC Resources Holdings Ltd, another CITIC
Group unit, is currently in the market with a US$300m three-
year bullet loan offering a top-level all-in of 290bp via a margin
of 220bp over Libor. – JP
Around five banks are looking to join the US$300m three-year
term loan for Hong Kong-listed CITIC Resources Holdings
Ltd (中信資源控股有限公司) at the top level, sources said.
Meanwhile, some banks are invited to join at two lower ticket
levels.
The bullet loan offers a margin of 220bp over Libor.
Banks get an all-in of 290bp via an upfront fee of 210bp and the
mandated lead arranger and bookrunner title for commitments
of US$30m or more, or an all-in of 280bp via a 180bp fee and
the lead arranger title for US$20-29m, or an all-in of 270bp via a
150bp fee and the arranger title for US$10-19m.
Proceeds are to refinance a US$1bn seven-year bond maturing
in May 2014. The bond proceeds part-financed the purchase of
oil and gas assets in Kazakhstan and were also for working capital.
The facility is expected to be signed and drawn down after
Chinese NewYear.
The borrower last tapped the market with a US$400m
three-year term loan signed in November 2012 which paid
a margin of 210bp over Libor. That deal, led by a five-bank
group and joined by 12 other lenders, was increased from an
original target of US$200m. The five were Bank of Taiwan,
Cathay United Bank, CTBC Bank, Mizuho Bank and Taiwan
Cooperative Bank.
Basis Point Annual 2014 will be
published next week. The next Basis
Point weekly will be on February 10.
Happy Chinese New Year!
4. Issue 1060 • 27 January 2014
4
CITIC Resources, rated Ba3 by Moody’s, is an energy and
natural resources investment holding company with interests in
aluminium smelting, coal, import and export of commodities, and
the exploration, development and production of oil. – JP, CZ
CITIC Resources Holdings Ltd
Facility type: Term loan
Amount: US$300m
Maturity: 3 years
Margin: 220bp over Libor
Repayment: Bullet
MLAB fee: 210bp for US$30m or more
Lead arrangement fee: 180bp for US$20-29m
Arrangement fee: 150bp for US$10-19m
Mandated lead arranger: Self-arranged
Status: In process
United Asia Finance Ltd (亞洲聯合財務有限公司) is seeking a
HK$2-2.5bn (US$258-322m) financing, sources said.
According to sources, Mizuho Bank, Standard Chartered Bank
andTaipei Fubon Commercial Bank are tipped for the mandate.
The four-year deal is split into an amortising loan and a revolving
credit.The average life is about three years.
Proceeds are for refinancing and general working capital.
In January 2013, the company raised a HK$3.6bn financing
that was increased from HK$2.8bn. The facility, split into a
HK$2.44bn four-year loan and a HK$1.16bn three-year loan,
paid a margin of 240bp over Hibor and a top-level upfront fee of
120bp.
In December, a block of the consumer finance company’s
HK$480m loan due November 2014 was on offer in the
secondary market, sources said.
In September, a roughly Rmb60m (US$9.9m) piece was sold at
par.The sold piece was from a Rmb170m tranche A which has a
margin of 130bp over three-month Bank of China Hong Kong
CNH Hibor. In primary, the tranche paid fees of 75bp to 105bp.
The dual-currency deal also includes a HK$271m tranche B
which has a margin of 153bp over Hibor. – JP, CZ
A HK$5bn (US$645m) two-year tranche of an acquisition
financing loan for CLP Holdings Ltd (中電集團) was signed on
January 22, according to a press release issued by sole mandated
lead arranger HSBC.
A dozen other banks joined HSBC, which solely underwrote a
HK$10bn two-tranche financing for the Hong Kong blue-chip.
HSBC took the entire HK$5bn one-year tranche on its books
and had launched the HK$5bn two-year tranche in mid-
December.
ANZ, Bank of Tokyo-Mitsubishi UFJ, Mizuho Bank
and Standard Chartered Bank joined as MLAs. Eight other
banks joined as lead arrangers. They were Barclays, Citigroup,
Commonwealth Bank of Australia, Deutsche Bank, National
Bank of Abu Dhabi, RBS, Scotiabank andWestpac Banking Corp.
As reported earlier, the two-year tranche offered a top-level all-in
of 95bp via a 40bp fee and a margin of 75bp over Hibor.
The loan backs CLP’s acquisition of shares in Castle Peak Power
Co Ltd (Capco) and Hong Kong Pumped Storage Development
Co Ltd.
CLP is assuming control of Capco by lifting its stake to 70%
through buying half of Exxon Mobil Corp’s 60% holding for
HK$12bn. CLP is also acquiring Exxon’s 51% stake in Pumped
Storage for HK$2bn.
CLP is teaming up with state-owned China Southern Power
Grid Co Ltd (CSG), which is buying the other half of Exxon’s
stake in Capco for HK$12bn, Reuters reported.
Evercore Partners and HSBC advised CLP, while Morgan Stanley
and China International Capital Corp advised CSG. Barclays
advised Exxon.
CLP Power Hong Kong Ltd, a wholly owned unit of CLP
Holdings, is the borrower. – PC
Ten banks have joined the US$484m dual-currency loan for
a joint venture of Shanghai-based property developers CIFI
Holdings (Group) Co Ltd (旭輝控股(集團)有限公司) and
Greenland Group (綠地控股集團), sources said.
The 10 include mandated lead arrangers and bookrunners Citic
Bank International, Standard Chartered Bank, Hang Seng Bank
and HSBC.
Mega International Commercial Bank came in as MLA. Joining
as lead arrangers are Bank of East Asia, Wing Lung Bank, First
Commercial Bank, Chang Hwa Commercial Bank andTa Chong
Bank.
The deal consists of a US$320m offshore tranche borrowed via
Xu Bao (HK) Co Ltd (旭寶(香港)有限公司) and a Rmb1bn
onshore tranche via Hangzhou Tuojiang Real Estate Co Ltd
(杭州拓江置業有限公司).
With equal shares in the joint venture, both CIFI and Greenland
are providing guarantees to the loan.
The offshore tranche has a margin of 400bp over Libor. The
onshore tranche, which is secured by property, has a margin of
106% of the PBOC rate.
Banks were invited to join with commitments of US$100m,
US$50m and US$20m for the titles of MLAB, MLA and lead
arranger, respectively.
MLABs get an upfront fee of 180bp for the offshore tranche and
100bp for the onshore tranche. MLAs get 150bp and 80bp, while
lead arrangers get 120bp and 60bp.
The deal has an average life of 2.85 years.The loan to value ratio
is 50%.
Allocations are available at www.loanconnector.com. – JP
5. Issue 1060 • 27 January 2014
5
Eleven banks have joined in general syndication of the HK$3bn
(US$387m) four-year dual-tranche loan for Kingboard Laminates
Holdings Ltd (建滔積層板控股有限公司), sources said.
Allocations are being finalised.
The 11 banks are: Bank of East Asia, Bank of Tokyo-Mitsubishi
UFJ, CCB Asia, Chang Hwa Commercial Bank, First
Commercial Bank, Hang Seng Bank, Hua Nan Commercial
Bank, Maybank, Mega International Commercial Bank, Mizuho
Bank and Sumitomo Mitsui Banking Corp.
As reported earlier, Standard Chartered Bank is the mandated
lead arranger and bookrunner.
The deal, fully underwritten by StanChart, is split into a
HK$1.8bn four-year term loan (tranche A) and a HK$1.2bn
four-year revolving credit (tranche B).
Proceeds refinance a HK$3bn four-year loan signed in May 2012
which saw participation from 20 banks including leads Citigroup,
HSBC and StanChart.That loan paid a top-level all-in of 288bp
based on a blended average life of three years and a margin of
245bp over Hibor/Libor.
The new facility will also fund capital expenditure and general
working capital requirements.
The deal pays a margin of 160bp over Hibor/Libor and has an
average life of 3.175 years.
Banks joining with HK$450m or above get 95bp in upfront fees
and the MLA title for a top-level all-in of 190bp.Those coming
in for HK$350-449m receive 80bp and the lead arranger title for
an all-in of 185bp, while tickets of HK$250-349m fetch 63.5bp
in fees, the arranger title and an all-in of 180bp. Banks chipping
in with HK$150-249m receive 47.5bp and the senior manager
title for an all-in of 175bp. – PC, JP
Ten banks have joined the US$247m two-year refinancing for
Shanghai Hongjia Tower (上海宏嘉大廈), sources said.
Among the 10 are mandated lead arrangers and bookrunners
BNP Paribas, ING Group, Credit Agricole CIB and CTBC
Bank.
Far Eastern International Bank came in as a lead arranger.
Joining as arrangers are Taishin International Bank, Chang Hwa
Commercial Bank, Ta Chong Bank, Taiwan Cooperative Bank
and Bank SinoPac.
Banks got an upfront fee of 60bp and the MLA title for
commitments of US$30m or more, a 50bp fee and the lead
arranger title for US$20-29m, or a 40bp fee and the arranger title
for US$10-19m.
The bullet loan is split into a US$185m offshore tranche with a
margin of 250bp over Libor and a Rmb380m onshore tranche
with a margin of 110% of PBOC rate. The onshore tranche
is secured by property mortgage and the offshore tranche by
company shares.
Signing was expected on January 24.
Proceeds refinance a loan that backed the purchase of Shanghai
Hongjia Tower by private equity firms Carlyle Asia Real Estate
Partners and CLSA Capital Partners.
Shanghai Hongjia Tower, completed in 2010, is a 25-storey
building located on Fushan Road, Pudong. – CZ
Shanghai Hongjia Tower
Facility type: [A] Offshore term loan
[B] Onshore term loan
Amount: US$247m: [A] US$185m
[B] Rmb380m
Maturity: 2 years
Margin: [A] 250bp over Libor
[B] 110% of PBOC rate
Repayment: Bullet
MLA fee: 60bp for US$30m or more
Lead arrangement fee: 50bp for US$20-29m
Arrangement fee: 40bp for US$10-19m
Mandated lead arrangers: BNP Paribas (books, facility)
[A] US$20.5m [B] Rmb180m, ING
Group (books) [A] US$40m
[B] Rmb60m, Credit Agricole CIB
(books) [A] US$20m [B] Rmb140m,
CTBC Bank (books) [A] US$40m
Lead arranger: Far Eastern International Bank
[A] US$18.5m
Arrangers: Taishin International Bank [A]
US$14m, Chang Hwa Commercial
Bank [A] US$9m,Ta Chong Bank [A]
US$9m,Taiwan Cooperative Bank [A]
US$9m, Bank SinoPac [A] US$5m
Status: Closed
Road King Infrastructure Ltd’s wholly owned subsidiary RKP
Overseas Finance 2013 (A) Ltd has signed a US$230m three-
year refinancing, according to a company announcement.
HSBC, Hang Seng Bank, China Citic Bank International, DBS
Bank and ICBC Asia are mandated lead arrangers in the club
term loan, according to banking sources. HSBC is the agent.
Proceeds are for refinancing a Rmb1.3bn (US$215m) 6%
guaranteed senior note due in February and other debt of Road
King and its subsidiaries, the Hong Kong-listed company said.
The loan is guaranteed by Road King and some of its
subsidiaries, the company said.
Under the facility agreement, Wai Kee Holdings Ltd, a
controlling shareholder of Road King, is required to maintain
a certain minimum shareholding in the company as its single
largest shareholder, according to the announcement.
Signing took place on January 10, the company said.
Road King Infrastructure has core businesses in the investment,
development, operation and management of toll roads and
property projects in China. – KW
6. Issue 1060 • 27 January 2014
6
AUSTRALIA
Paladin completes Africa mines refi
Perth-based uranium miner Paladin Energy Ltd has refinanced its
Langer Heinrich and Kayelekera project finance facilities, which
will reduce debt repayments over 2014-2015 by US$59m.
The Langer Heinrich mine is in Namibia, while the Kayelekera
mine is in Malawi.
The new Langer Heinrich facility comprises a US$110m six-year
loan, renewable annually for 12 months, and a US$20m working
capital facility. Repayment of the US$110m facility starts in June
with 12 equal instalments of US$9.2m.
The existing US$48.1m Kayelekera PF loan will be repaid in
full immediately but the facility will remain in place to support a
US$10m performance bond.
The new facility is provided by Nedbank Capital, Nedbank
Namibia, Standard Bank of South Africa and Standard Bank
Namibia.
The refinancing will result in annual principal repayments across
both projects being reduced by US$35.5m to US$18.3m in 2014
and by a further US$23.7m in 2015.
Paladin said the refinancing would improve its debt position,
conserve operational cash flow and provide significant cash flow
benefits to both projects. – SB
Property group Lend Lease Corp Ltd’s recent refinancing was
increased to A$3.25bn (US$2.85bn) from an original launch size
of A$2.5bn, sources said, due to the strong reception from banks.
However, lenders were still scaled back despite the increase in
size, one of the sources said.
The final deal was split into a A$600m four-year revolving
tranche A, a A$900m five-year revolver tranche B, a A$1.05bn
three-year bank guarantee tranche C and a A$700m four-year
bank guarantee tranche D.
Mandated lead arrangers and bookrunners Commonwealth Bank
of Australia, HSBC, National Australia Bank, RBS and Westpac
Banking Corp were allocated A$325m each, while 15 other
lenders were allocated between A$50m and A$250m each.All are
relationship banks of the company.
As previously reported, the opening margin for tranche A was
165bp over BBSY with a 50% commitment fee or 82.5bp, while
the opening margin for tranche B was 180bp over BBSY with a
50% commitment fee or 90bp.
The tranche C guarantee facility paid a performance bond
margin of 60bp over BBSY, a financial guarantee margin of 90bp
over BBSY and a line fee of 60bp.Tranche D paid a performance
bond margin of 65bp over BBSY, a financial guarantee margin of
100bp over BBSY and a line fee of 65bp.
Allocations are available at www.loanconnector.com. – SK
Plenary Group Pty Ltd has completed a A$233m (US$204m)
seven-year refinancing of its bioscience research centre public-
private partnership in Melbourne at a margin of 190bp over
BBSY, according to a statement on January 23.
Existing lenders Commonwealth Bank of Australia, National
Australia Bank and Westpac Banking Corp recommitted to the
deal.The original financing also included a tranche of mezzanine
debt from Bank of Tokyo-Mitsubishi UFJ which has been
replaced by the new all-senior loan.
The A$260m project, located at Melbourne’s Latrobe University,
is a joint initiative between the university and the Victorian state
government. Project company Plenary Research Pty Ltd has a
25-year concession to operate the facility.
Canadian fund manager Caisse de depot et placement du Quebec
(Caisse) invested A$32m in the project in March last year. – SK
Australia’s Santos Ltd expects a sharp boost in production and
cash flow in the second half of 2014 as liquefied natural gas
begins flowing from the Papua New Guinea gas project it has a
stake in.
Santos,Australia’s second-biggest oil and gas producer, on January
23 posted record sales revenue of A$1.1bn (US$964m) for the
fourth quarter of 2013, driven by its highest oil production in six
years. Strong oil prices and higher third-party sales volumes also
played a role in boosting sales, the company said.
Santos has a 13.5% interest in the US$19bn PNG liquefied
natural gas (LNG) project, which it said was over 90% complete.
The project is operated by Exxon Mobil Corp.
Santos is also developing the Gladstone LNG project in
Queensland state, one of seven under construction in Australia to
meet demand for gas in Asia.That project is on track to start in
2015, it said.
“In the second half of 2014, the first of these projects, PNG
LNG, is on track to commence LNG shipments to Asia,
delivering a significant boost in production and cash flow for the
company,” chief executive officer David Knox said.
For calendar 2013, Santos said it produced 51 million barrels
of oil equivalent (mmboe), down 2% from 2012 and in line
with guidance issued in December. This was a revision from an
October forecast that it would produce at the low end of a 52-55
mmboe range.
The sponsors raised a US$1.5bn 14-year cost-overrun facility last
year to partially fund the increased cost of the project. Some 10
existing banks provided a total of US$600m in commitments in
varying amounts of US$20m to US$120m each.The margin was
270bp over Libor.
Those banks were China Development Bank, Commonwealth
Bank of Australia, Mizuho Bank, National Australia Bank,
Sumitomo Mitsui Banking Corp, Standard Chartered Bank,
7. Issue 1060 • 27 January 2014
7
ANZ, Societe Generale, Westpac Banking Corp and Credit
Industriel et Commercial Bank. Key shareholder Exxon Mobil
provided a US$900m bilateral loan towards the financing. The
borrowing vehicle for the additional debt is Papua New Guinea
Liquefied Natural Gas Global Co LDC. – Reuters, SK
CHINA
CDB leads Rmb25bn in Jiangxi expwy loans
China Development Bank is leading loans totalling more than
Rmb25bn (US$4.13bn) for three expressway construction
projects in Jiangxi province, sources said.
The three financings are an around Rmb13bn term loan for
the Nanchang-Ningdu (Chang-Ning) Expressway, an around
Rmb8bn term loan for the Nanchang-Shangli (Chang-Li)
Expressway and a roughly Rmb5bn term loan for the Xingguo-
Ganxian (Xing-Gan) Expressway.
All three loans have tenors of more than 20 years and offer
margins of 100% of the PBOC rate. Each has a three-year grace
period.
Financings for the Chang-Ning Expressway and Chang-Li
Expressway are borrowed via Jiangxi Provincial Expressway
Investment Group Co Ltd (江西省高速公路投资集团有限责
任公司), while Ganzhou Expressway Co Ltd (赣州高速公路有
限责任公司) is the borrower of the Xing-Gan Expressway loan.
Both companies are state-owned.
Local banking sources said the deals are expected to close in the
first half of 2014.
Total investment for the three expressways exceeds Rmb34bn,
according to local media and the company websites. – KW
Ten banks have joined the Rmb2.44bn (US$403m) three-year
refinancing for a property in Beijing’s Sanlitun area owned by
Swire Properties Ltd, sources said.
The 10 are: HSBC (Rmb557.28m), Standard Chartered Bank
(Rmb557.28m), BNP Paribas (Rmb466.91m), Hang Seng Bank
(Rmb225.92m), Credit Agricole CIB (Rmb180.74m), Bank of
Tokyo-Mitsubishi UFJ (Rmb90.37m), DBS Bank (Rmb90.37m),
Mizuho Bank (Rmb90.37m), OCBC Bank (Rmb90.37m) and
Sumitomo Mitsui Banking Corp (Rmb90.37m).
The deal consists of a Rmb1.2bn tranche borrowed via Beijing
Sanlitun North Property Management Co Ltd (北京三里屯北
不动产管理有限公司) and a Rmb1.24bn tranche via Beijing
Sanlitun South Property Management Co Ltd (北京三里屯南不
动产管理有限公司).
As reported earlier, proceeds refinance a Rmb2.7bn three-year
deal from March 2011.
The latest facility pays a margin of 110% of the PBOC rate, the
same as the 2011 loan, according to sources.
Swire Properties, the real estate arm of conglomerate Swire
Pacific Ltd, is providing a guarantee.
Swire Properties is the developer of Taikoo Li Sanlitun, a low-
density complex comprising retail space and a hotel in Beijing’s
Chaoyang district, according to its website.
Allocations for the respective tranches are available at
www.loanconnector.com. – JP
Another bank has joined Yieh Phui (China) Technomaterial Co
Ltd’s (烨辉(中国)科技材料有限公司) Rmb925m (US$153m)
seven-year, dual-currency financing, sources said.
Taiwan Cooperative Bank has come in with Rmb funds, while
both China Construction Bank and Industrial & Commercial
Bank of China are seeking approval to join, according to sources.
Land Bank of Taiwan and Taiwan Business Bank came in earlier,
in December.
Led by Bank of China and First Commercial Bank Shanghai, the
deal is expected to be signed in March, sources said.
As previously reported, the facility comprises a roughly
Rmb803m tranche with BOC as the agent and a US$20m
tranche with FCB as agent. Margins are 350bp over Libor for the
US$ tranche and 105% of the five-year PBOC rate for the Rmb
tranche.
Proceeds are for a new materials production line.
The financing, with a 3.5-year grace period, will be guaranteed
during the construction phase by the parent company,Taiwan-
based Yieh Phui Enterprise Co Ltd. It will be secured by
land, factory and equipment when the production line is
operational.
The steel manufacturer sealed a Rmb600m three-year amortising
loan for working capital on November 18. That deal, led by
BOC Suzhou, paid a margin of 105% of the PBOC rate. BOC’s
Changshu branch, ICBC, China Merchants Bank, Bank of
Jiangsu and Bank of Ningbo joined as lenders.
Meanwhile,Yieh Phui Enterprise’s Hong Kong unit, Yieh Phui
(HK) Holdings Ltd (烨辉(香港)控股有限公司), is currently
seeking a US$37m seven-year term loan in Taiwan. The FCB-
led deal is split into a US$30m tranche A which offers a margin
of 250bp over three-month Libor and a Rmb43m tranche B
offering 230bp over three-month CNH Hibor. – KW
Hong Kong- and Shanghai-listed Nanjing Panda Electronics Co
Ltd announced on January 22 that 167.35m of its shares had been
pledged as security for an Rmb800m (US$132m) two-year term
loan for unit Nanjing Panda Handa Technology Co Ltd (南京熊
猫汉达科技有限公司).
The shares, representing 18.31% of the company’s total issued
share capital, are held by Nanjing Panda Electronics’ controlling
shareholder Panda Electronics Group Ltd (PEGL).
8. Issue 1060 • 27 January 2014
8
China Electronics Financial Co Ltd, Bank of Communications
Jiangsu branch and China Construction Bank Nanjing
Zhongyangmen sub-branch are lenders to the loan, Nanjing
Panda Electronics said.
PEGL completed the equity pledge registration on January 22,
according to the announcement. In total, it holds 36.63% of the
shares of Nanjing Panda Electronics.
Nanjing Panda HandaTechnology is wholly owned by PEGL.
The borrower sealed a Rmb700m two-year loan from the
same lenders in November 2011, secured by 167.35m shares of
Nanjing Panda Electronics. A local banking source at the time
said China Electronics Financial was the mandated lead arranger
on that loan.
China Electronics Financial is a connected person of Nanjing
Panda Electronics, the company said in the January 22
announcement.
Nanjing Panda Electronics makes telecommunications
equipment, computers and electronic equipment, and provides
technological services.
The company’s stock closed on January 22 at HK$9.19 in Hong
Kong and Rmb3.89 in Shanghai. – KW
INDIA
Tata Comm mandates three for US$240m refi
Mumbai-listed Tata Communications Ltd has mandated three
banks on a US$240m five-year amortising loan that will refinance
existing debt, while its Singapore-based unit has hit the market
with a S$100m (US$78m) three-year term loan, sources said.
ANZ, RBS and Standard Chartered Bank are the mandated lead
arrangers and bookrunners on the US$240m deal, which has an
average life of four years and a mandated all-in of over 300bp,
according to one source.
The transaction will be launched into general syndication after
the Lunar New Year holidays with roadshows slated for mid-
February in Singapore,Taipei and Dubai.
The S$100m bullet loan is led by ICICI Bank and guaranteed by
parentTata Communications.The margin is 280bp over Sibor.
Banks are invited to join at an upfront fee of 40bp and the MLA
title for commitments of S$15m or more, or a 30bp fee and the
lead arranger title for S$5-14m.
The facility is borrowed via Tata Communications International
Pte Ltd. Responses are due on January 31.
In April 2012, Tata Communications dropped out of the race
to buy Britain’s Cable & Wireless Worldwide, killing hopes of a
financing opportunity for the loan markets. ANZ, DBS Bank,
ING Bank, StanChart and State Bank of India had underwritten
an up to US$2bn acquisition financing for Tata Communications
at the time.
In June 2011,Tata Communications sealed a US$525m five-year
amortising loan for Tata Communications Netherlands. ANZ,
RBS and StanChart were original MLABs on that deal as well.
Seven other banks joined the loan, which paid a top-level all-in
of 312.5bp based on a margin of 290bp over Libor. – PC, KW,
CZ
Tata Communications International Pte Ltd
Guarantor: Tata Communications Ltd
Facility type: Term loan
Amount: S$100m
Maturity: 3 years
Margin: 280bp over Sibor
Repayment: Bullet
MLA fee: 40bp for S$15m or more
Lead arrangement fee: 30bp for S$5-14m
MLA: ICICI Bank
Status: In process, responses due January 31
Indian state-owned Rural Electrification Corp Ltd (REC) has
sent out a request for proposals for a US$150m five-year loan,
according to sources.
The deadline for responding to the RFP is February 7, said one
source.The deal has an unspecified greenshoe.
The borrower is making its return to the offshore loan markets
within a couple of months of signing a US$285m five-year bullet
facility on November 22.
HSBC, State Bank of India and Sumitomo Mitsui Banking Corp
were the mandated lead arrangers and bookrunners on that
financing, which paid a top-level all-in of 190bp via a 200bp
upfront fee and a margin of 150bp over Libor.
SBI ended up with US$150m, while HSBC and SMBC took
US$50m apiece.
Sumitomo Mitsui Trust Bank came in as lead arranger with
US$15m, while Gunma Bank and Tokyo Star Bank joined as
co-arrangers with US$10m each.
REC’s previous offshore loan market visit was in January 2013
when it raised US$250m through a three-year loan clubbed by
Bank of America Merrill Lynch and SBI. SBI took US$150m,
while BAML came in with US$100m.All-in pricing was around
200bp. – PC
The US$500m four-year loan for Indian miner Vedanta
Resources Plc received its first commitment in senior
syndication ahead of this week’s launch into general syndication,
sources said.
ICBC Asia joined as mandated lead arranger and bookrunner
with a US$65m commitment, while a handful of other lenders
were also processing approvals, one source said.
Senior syndication would remain open for these lenders even
after the January 27 launch of general syndication, the source said.
9. Issue 1060 • 27 January 2014
9
In senior syndication, banks are invited to join at an all-in of
395.7bp via a 150bp fee for commitments of US$65m and the
MLAB title, or an all-in of 389.3bp via a 125bp fee for US$45m
and the MLA title.
Bank of America Merrill Lynch, Barclays, DBS Bank, Deutsche
Bank, RBS and Standard Chartered Bank are the MLABs on
the new loan, which will refinance a US$500m 8.75% bond due
January 2014.
Meanwhile, an up to US$25m piece of the Indian miner’s
US$1.2bn five-year loan due June 2018 is on offer in the
secondary market at an all-in of 400-425bp (see p16). – PC
The deadline for bids for the US$250m three-year loan for
Bharat Petroleum Corp Ltd (BPCL) has been extended to
February 3, according to sources.
The borrower had sent out a request for proposals with an
original deadline of around January 27-28.
The loan features a US$50m greenshoe and comes within
weeks of BPCL signing a US$500m six-year loan in mid-
December. Nineteen banks, including seven mandated leads and
bookrunners, participated in that financing, which paid a top-
level all-in of 210bp based on a margin of 175bp over Libor and
an average life of five years.
BPCL’s previous syndicated loan was in April 2011 when it sealed
a US$200m five-year bullet facility which paid a top-level all-in
of 165bp based on a margin of 149bp over Libor. – PC
INDONESIA
US$270m Navigat Energy loan hits gen syn
Mandated lead arrangers and bookrunners OCBC Bank and
Standard Chartered Bank have launched PT Navigat Energy’s
US$270m financing into general syndication, sources said.
The facility comprises a US$70m one-year standby letter of
credit tranche A, a US$70m one-year revolving credit tranche B,
and a US$200m five-year term loan tranche C.Tranches A and B
will not exceed a combined US$70m.
The loan offers a margin of 550bp over Libor and now has an
average life of 3.07 years, according to sources.
Banks get an all-in of 582.57bp via an upfront fee of around
100bp and the lead arranger title for commitments of US$20-
29m, and an all-in of 576bp via an around 80bp fee and the
arranger title for commitments of US$10-19m.
Responses are due on February 19, following roadshows in
Jakarta on January 23 and in Singapore on January 27.
Earlier, in senior syndication, Export-Import Bank of Indonesia
joined as an MLA and GE Capital and Sarana Multi Infrastruktur
as lead arrangers. Those three lenders and the two original
MLABs signed the facility on November 27.
As previously reported, funds are to refinance a US$100m deal
from March last year as well as for general working capital.The
March loan paid a margin of 550bp over Libor and a top-level
upfront fee of 100bp.
Navigat Energy, part of the Navigat Group, distributes General
Electric gas engines in Southeast Asia. It is also in the power
generation business. – KW
PT Navigat Energy
Facility type: [A] Standby LC [B] Revolving credit
[C]Term loan
Amount: US$270m: [A] US$70m [B] US$70m
[C] US$200m
Maturity: (A, B) 1 year [C] 5 years
Margin: 550bp over Libor
Repayment: (A, B) Bullet [C] Amortising
Lead arrangement fee: 100bp for US$20-29m
Arrangement fee: 80bp for US$10-19m
MLAB: OCBC Bank, Standard Chartered Bank
Mandated lead arranger: Export-Import Bank of Indonesia
Lead arrangers: GE Capital, Sarana Multi Infrastruktur
Status: In process, responses due February 19
JAPAN
Lixil to refinance bridge for Grohe buy
Lixil Group Corp plans to refinance by the end of March a
roughly ¥200bn (US$1.92bn) bridge loan backing its E2.935bn
(US$3.97bn) leveraged buyout of Germany’s biggest bathroom
fittings company Grohe Group, a banking source said.
Bank of Tokyo-Mitsubishi UFJ, Mizuho Bank and Sumitomo
Mitsui Banking Corp provided the bridge to a special purpose
company jointly owned by Lixil and Development Bank of Japan.
The refinancing is expected to be a long-term, non-recourse loan
in euros, the source said.
The acquisition was completed on January 21, the Japanese
building products group said in a statement.
Lixil in September 2013 announced the LBO of Grohe from
financial investor TPG Capital and Credit Suisse’s private equity
arm.
BNP Paribas, Moelis & Co and SMBC Nikko Securities were
the financial advisers to Lixil, while Credit Suisse and Goldman
Sachs advised Grohe. –WS
Japanese banks including Sumitomo Mitsui Banking Corp and
Sumitomo Mitsui Trust Bank are working to finalise by the end
of March an over ¥100bn (US$968m) jumbo financing to back
KKR’s planned leveraged buyout of Panasonic Healthcare Co
Ltd, banking sources said.
The financing will include a mezzanine portion provided by
Nomura Capital Investment.
10. Issue 1060 • 27 January 2014
10
The size of the financing is yet to be determined as KKR is still
finalising the investment cost for Panasonic Corp’s healthcare
unit.
KKR in September 2013 said it will initially pay about ¥165bn
for the unit, and as part of the deal the fund will allocate a 20%
share in Panasonic Healthcare to Panasonic.
The deal with Panasonic will be KKR’s largest investment in a
Japanese firm. The New York-based private equity firm, which
opened its Tokyo office in 2006, has been trying to buy non-core
businesses from Japan’s large companies. –WS
Banks have been invited to submit proposals for Lone Star’s
leveraged buyout of Invoice Co Ltd, banking sources said.
The private equity fund bought the communications package
billing service provider from MBK Partners LP for an
undisclosed amount with all equity first and is now seeking a
debt financing to back the acquisition.
In February 2011, MBK got a ¥12.5bn (US$121m) financing to
back its management buyout of Invoice. MBK invested ¥11.5bn
in equity.
MBK in March 2012 opted for a recapitalisation deal after talks
with Advantage Partners Inc to sell the asset fell apart late in
2011. Mizuho Bank arranged a ¥10bn senior loan, while Chuo
Mitsui Capital provided ¥7-8bn of preferred shares. –WS
Mizuho Bank and Sumitomo Mitsui Banking Corp are backing
private equity firm Japan Industrial Partners Inc’s planned
leveraged buyout of internet service provider NEC Biglobe Ltd,
banking sources said.
The planned sale from NEC Corp could be worth around ¥70bn
(US$670m), according to the Nikkei daily. Some bankers said the
price seems too high as the business is not growing.
NEC currently owns 78% of Biglobe’s shares. –WS
Sumitomo Mitsui Banking Corp has completed a ¥160bn
(US$1.55bn) recapitalisation deal for USJ Co Ltd, operator of the
Universal Studios Japan theme park in Osaka, for its new Harry
Potter attraction, banking sources said.
The recap deal, which was signed last month, comprises a ¥131bn
five-year senior loan and a ¥29bn subordinated bond.
“USJ’s performance has been robust and the new Harry Potter
attraction is expected to boost it further. They wanted to take
advantage of the bullish lending market to increase leverage,” one
of the sources said.
The senior leverage of the USJ loan has been increased to over
four times EBITDA from less than three times, while margins
have come down to around 200bp from mid-200s.
“The market is getting as aggressive as 2007 levels,” another
source said.
Mainly the existing lenders, including Development Bank of
Japan, have rejoined the senior loan.
The subordinated bond was underwritten by SMBC Nikko
Securities and sold mainly to leasing companies.
USJ will spend ¥45bn on the new Harry Potter theme park,
which will open later in 2014.
Hong Kong private equity fund PAG, formerly Pacific Alliance
Group, in December announced it would invest US$250m in
USJ, which is owned by Goldman Sachs Group, MBK Partners
LP and Owl Creek Asset Management.
In March 2012, DBJ and SMBC arranged a ¥60bn seven-year
term loan to refinance the ¥75bn five-year loan completed in
2009 to back the USJ management buyout.
The refinancing paid margins ranging from 225bp to 250bp –
about half the pricing of the original loan.
Bank of Tokyo-Mitsubishi UFJ, the then Mizuho Corporate Bank
and the then Sumitomo Trust & Banking came in as co-arrangers,
while Nippon Life Insurance joined as arranger.–WS
Mandated lead arranger Sumitomo Mitsui Banking Corp has
completed an ¥8.8bn (US$84m) six-year loan for Kappa Create
Holdings Co Ltd, the Saitama-based sushi restaurant operator said
in a statement.The loan was signed on January 20.
Mizuho Bank came in as co-arranger, while Bank of Tokyo-
Mitsubishi UFJ, Chiba Bank, Hachijuni Bank, Musashino Bank
and Saitama Resona Bank joined as lenders.
SMBC is the agent.
Funds, which can be drawn any time until 27 February 2015, are
for capital expenditure. –WS
MALAYSIA
SapuraKencana invites banks to jumbo loan
Malaysian oilfield service provider SapuraKencana Bhd is
inviting banks to join a roughly US$5.35bn dual-currency
financing that will back its US$898m purchase of Newfield
Exploration Co’s Malaysian oil and gas assets and also refinance
existing debt, sources said.
According to sources, the deal is now split into a US$2.8bn
five-year term loan with a two-year extension option, a RM7bn
two-year bridge-to-sukuk bond facility, and a RM1.5bn one-year
revolving credit that can be renewed annually.
When the new deal first surfaced in November, sources said the
financing consisted of a US$900m 12-month bridge to fund the
acquisition, a US$2.2bn two-year bridge-to-sukuk bond issue,
a US$2.2bn seven-year term loan and a US$500m seven-year
revolving credit. Sources said banks are asked to commit at least
US$200-250m to all tranches. Responses were due last week but
sources expected the deadline to be extended.
11. Issue 1060 • 27 January 2014
11
The borrower had sounded the market on the deal in November.
It marks the largest loan for a Malaysian company since 2007
when Binariang GSM Sdn Bhd raised US$7.1bn to fund the
acquisition of shares in Maxis Communications Bhd.
SapuraKencana was created by the merger of SapuraCrest
Petroleum and Kencana Petroleum Bhd and made its debut on
the Malaysian stock exchange in May 2012.
SapuraKencana raised a US$1.85bn 12-month bridge loan in
April last year which part-funded the US$2.9bn acquisition of
Seadrill Ltd’s tender oil rig business.
That loan, borrowed by SapuraKencana Petroleum Bhd, was
provided by 10 lenders.
The bridge loan lenders are expected to be close to this new
deal.They include Malaysian banks AmBank, CIMB, Employees
Provident Fund, Maybank and RHB Bank and international
lenders ABN AMRO Bank, BNP Paribas, HSBC, Standard
Chartered Bank and UOB.
The US$1.85bn loan received commitments of more than
US$2.5bn and paid a margin of 175bp over Libor for the first
three months, stepping up to 200bp, 225bp and 250bp after six,
nine and 12 months respectively. – JP, KW
Malaysia’s AmBank is seeking a US$300m three-year bullet
term loan, sources said. ANZ and Standard Chartered Bank are
underwriters and bookrunners of the deal.Wells Fargo Bank also
shares the bookrunner title.
The facility offers a margin of 90bp over Libor.A limited number
of banks have been invited to join at an all-in of 115bp via
a 75bp upfront fee and the mandated lead arranger title for
commitments of US$50m or above.
Responses are due at the end of January or early February.
The bank signed a US$210m three-year bullet loan in March
2011 with ANZ, Bank of America Merrill Lynch, Bank of
Tokyo-Mitsubishi UFJ, UOB and Wells Fargo.That deal paid the
same margin and fee as the latest one.
AmBank is rated Baa1 by Moody’s and BBB+ by Standard &
Poor’s. – KW
AmBank
Facility type: Term loan
Amount: US$300m
Maturity: 3 years
Margin: 90bp over Libor
Repayment: Bullet
MLA fee: 75bp for US$50m or above
MLAB: ANZ, Standard Chartered Bank,Wells Fargo
Status: In process
Sole bookrunner ANZ is syndicating the A$150m (US$132m)
three-year bullet term loan for Malaysia-based Malakoff
International Ltd in Singapore, sources said.
Banks joining with tickets of A$20m or above get an all-in of
around 200bp based on a margin of 185bp over BBSY and fees of
35bp.Average life is 2.4 years.Responses are due on January 27.
A majority of the banks looking to join are Taiwanese lenders,
according to sources.
The facility, prefunded by ANZ in June, was for Malakoff’s
acquisition of a 50% interest in MacarthurWind Farm from New
Zealand’s Meridian Energy.
The loan is secured and guaranteed by Malakoff Corp Bhd.
ANZ invited a select group of lenders to join the financing in
July. At the time, those joining with A$40m or above would get
an all-in of 200bp based on a margin of 185bp over BBSY and
fees of 45bp and the MLA title.
Malakoff is a subsidiary of MMC Corp Bhd. – KW
One bank joined limited syndication of the RM2.408bn
(US$724m) seven-year, multi-tranche financing backing the
leveraged buyout of Malaysia fast-food chain operators KFC
Holdings (Malaysia) Bhd and QSR Brands (M) Holdings Sdn
Bhd, sources said.
RHB Bank joined the CIMB Bank-led deal as mandated lead
arranger, holding RM450m. The facility was fully underwritten
and prefunded by MLA and bookrunner CIMB back in
December 2012. CIMB is also facility and security agent.
The loan comprises a RM1.526bn amortising term loan tranche
A, a RM274m amortising term loan tranche B, a RM200m
amortising term loan tranche D, a RM200m revolving credit
tranche, and RM208m in tradeline ancillary facilities.
It also includes a tranche C up to an amount equal to the
aggregate outstanding under tranches A and B on the date of the
group streamlining exercise.Tranche C will only be utilised when
the borrower prepays tranches A and B in an aggregate amount
equal to the Facility C loan made on such date.
RHB Bank came in with RM321.2m in tranche A, RM46.4m
in tranche B, RM39.8m in tranche D and RM42.6m in the
revolver tranche.
Limited syndication was closed on January 10.
Proceeds are also for refinancing, capital expenditure and general
working capital.
KFC and QSR were bought out in January 2013 by a
consortium including Johor Corp, Employees Provident Fund
(EPF) and CVC Capital Partners.
Under the deal, KFC shareholders received RM4 (US$1.20) per
share, while QSR shareholders got RM6.8 per share.
The KFC and QSR businesses were acquired by Triple Platform
Sdn Bhd (TPSB), a wholly owned subsidiary of Massive Equity
Sdn Bhd (MESB), which is 51% owned by Johor Corp and 49%
by Melati Asia Holdings Ltd. Melati is in turn 51% owned by
EPF and 49% by CVC funds. – KW
12. Issue 1060 • 27 January 2014
12
NEW ZEALAND
Moody’s cuts Chorus rating to Baa3
Moody’s Investors Service on January 21 downgraded its credit
rating on Telecom New Zealand (TNZ) spinoff Chorus Ltd by
one notch to Baa3 from Baa2 due to a regulatory decision to cut
the prices the company offers on its services by about half.The
ratings outlook is negative.
The ratings downgrade affects about US$1.5bn of debt. The
company has a NZ$1.35bn (US$1.12bn) two-tranche revolving
credit maturing in November 2015 and November 2017, as well
as a separate NZ$250m 69-month revolver maturing in May
2019, according to LPC data.
Moody’s said bank financial covenants would be breached in
2015 if Chorus is unable to alleviate the impact of the New
Zealand Commerce Commission decision, through actions such
as repricing of commercial services, cost cutting and dividend
reduction.
The NZCC decision in late 2013 on Chorus’s unbundled
bitstream access (UBA) will lower annual earnings by about
NZ$142m, or around 20%, from the 2015 fiscal year. The
company had previously said the potential revenue shortfall
would result in insufficient funding for the rollout of a national
broadband project it is involved in. – SK
SINGAPORE
SingTel raising S$1.8bn refi
SingTel Ltd is raising a S$1.8bn (US$1.4bn) three-year loan for
refinancing, sources said.According to sources, relationship banks
are being sounded on the club deal.
The Singapore telecommunications company has a S$2.16bn
three-year revolving credit due this June. Twelve banks were in
that club deal: ANZ, Bank of America Merrill Lynch, Bank of
Tokyo-Mitsubishi UFJ, Citigroup, DBS Bank, Deutsche Bank,
HSBC, Mizuho Bank, OCBC Bank, Standard Chartered Bank,
Sumitomo Mitsui Banking Corp and UOB.
SingTel is the largest company by market capitalisation listed
on the Singapore Exchange and is majority-owned by Temasek
Holdings, the investment arm of the Singapore government. –
JP, KW
OUE Commercial REIT is raising a S$680m (US$532m) three-
tranche financing for the OUE Bayfront property in Singapore,
sources said. CIMB Bank, OCBC Bank and Standard Chartered
Bank are mandated.
The deal consists of a S$280m five-year loan, a S$300m three-
year loan and a S$100m three-year revolving credit.
Launch of syndication is expected after Chinese NewYear.
On January 10, Moody’s Investors Service assigned a provisional
Ba1 corporate family rating to the borrower. OUE C-REIT’s
property portfolio comprises two high-quality commercial
properties located in prime central business districts – OUE
Bayfront in Singapore and Lippo Plaza in Shanghai.
According to Moody’s, as of 30 September 2013, OUE C-REIT’s
property portfolio reported an average occupancy of 91.4% for
office space and 98.3% for retail space. Its top 10 tenants have an
average weighted average lease expiry of 2.8 years.
The trust’s sponsor, OUE Ltd – a 55% owned subsidiary of Lippo
Group – is expected to retain a 45-50% stake in the trust after
OUE C-REIT’s listing.
In December, OUE Hospitality Trust sealed a S$630m loan
backing the listing of developer OUE Ltd’s commercial
properties in Singapore.That deal was split into a S$294m five-
year term loan and three, three-year tranches – a S$293m term
loan, a S$12m uncommitted revolving credit and a S$31m
revolver.
The blended margin on the three- and five-year term loans was
106bp over the Singapore swap offer rate (SOR). Banks got an
all-in of 123bp via a 60bp fee for commitments of S$150m, or
120bp via a 50bp fee for S$100m.
StanChart was sole bookrunner on that deal, which was joined
by RHB Bank, Sumitomo Mitsui Banking Corp, Bank of China,
CIMB Bank and ANZ. – JP
Wilmar International Ltd’s US$1.75bn two-tranche revolving
credit was launched into syndication on January 20, sources said.
The seven mandated lead arrangers and bookrunners are BNP
Paribas, Maybank, Mizuho Bank, OCBC Bank, Rabobank,
Sumitomo Mitsui Banking Corp and Westpac Banking Corp.
The leads have fully underwritten the revolver.
The facility, borrowed via Wii Pte Ltd, is guaranteed by Wilmar.
Proceeds are for general working capital and refinancing.
The deal is split into a three-year tranche with a margin of 134bp
over Libor and a five-year tranche with a margin of 178bp over
Libor.
Banks are invited to commit US$100m or more for the MLA
title, US$50-99m for the lead arranger title, US$30-49m for the
arranger title, or US$20-29m for the lead manager title.
MLAs get an all-in of 145bp via a 33bp fee on the three-year
tranche, and an all-in of 195bp via an 85bp fee on the five-year.
Lead arrangers get 144bp via a 30bp fee and 192.5bp via a
72.5bp fee for the two tranches, respectively.Arrangers get 143bp
via a 27bp fee and 190bp via a 60bp fee, while lead managers get
142bp via a 24bp fee and 187.5bp via a 47.5bp fee.
The revolver has a commitment fee at 20% of the margins.
A roadshow is scheduled for February 7 in Singapore.
Commitments are due on February 28.
13. Issue 1060 • 27 January 2014
13
Last September, Wilmar increased a revolver to US$2.065bn
from an original target of US$1.5bn.The facility was split into a
US$365m three-year tranche with a margin of 135bp over Libor
and a US$1.7bn five-year tranche with a margin of 180bp over
Libor.
Last year’s facility was led by Bank of Tokyo-Mitsubishi UFJ,
CIMB Bank Singapore, Commonwealth Bank of Australia, DBS
Bank, HSBC and UOB.A total of 24 banks joined in syndication.
Banks were paid top-level all-ins of 150bp and 200bp via
45bp and 100bp in fees on the three- and five-year tranches,
respectively. – JP
Wii Pte Ltd
Guarantor: Wilmar International Ltd
Facility type: Revolving credit
Amount: US$1.75bn
Maturity: [A] 3 years [B] 5 years
Margin: [A] 134bp over Libor
[B] 178bp over Libor
Repayment: Bullet
Availability: Throughout
Commitment fee: 20% of margin
MLA fee: For US$100m or more:
[A] 33bp [B] 85bp
Lead arrangement fee: For US$50-99m: [A] 30bp [B] 72.5bp
Arrangement fee: For US$30-49m: [A] 27bp [B] 60bp
Lead management fee: For US$20-29m: [A] 24bp [B] 47.5bp
MLABs: BNP Paribas, Maybank, Mizuho Bank,
OCBC Bank, Rabobank, Sumitomo
Mitsui Banking Corp,Westpac Banking
Corp
Status: In process, responses due February 28
Mandated lead arrangers and bookrunners ANZ, HSBC and
Standard Chartered Bank have launched a S$420m (US$329m)
three-year senior secured term loan for Savu Investments Pte
Ltd, sources said. The three leads have fully underwritten the
facility and funded the deal on January 17.
Proceeds are to refinance an existing S$420m senior bond which
matured on January 17.
The loan has a margin of 80bp over the S$ swap offer rate.
Based on a remaining average life of 2.83 years, banks get an all-
in of 103bp via a 65bp fee for commitments of S$50m or more
and the MLA title.
Commitments are due on February 28.Transfer of loan is slated
for March 17.
The facility is secured by Savu Investments’ main property
– Income at Raffles (formerly known as Hitachi Towers), a
37-storey 999-year leasehold commercial building located at 16
Collyer Quay, Singapore.
Completed in 1992, Income at Raffles comprises an office tower
and a two-storey retail podium by the name of Change Alley that
is structurally connected with Chevron House.The property has
a net lettable area of about 278,440 square feet and a three-level
basement carpark.
Savu Investments is 100% owned by NTUC Income Insurance
Co-operative Ltd. NTUC Income, one of Singapore’s leading
insurers, had over S$31bn in assets under management in 2012. It
is rated AA- by Standard & Poor’s. – JP
Savu Investments Pte Ltd
Facility type: Term loan
Amount: S$420m
Maturity: 3 years
Margin: 80bp over S$ SOR
Repayment: Bullet
MLA fee: 65bp for S$50m or more
Mandated lead arrangers: ANZ (books), HSBC (books), Standard
Chartered Bank (books)
Status: In process, responses due January 17
ANZ has joined with a US$50m commitment in Goodhope Asia
Holdings Ltd’s US$400m multi-tranche financing, sources said.
HSBC and Standard Chartered Bank are the mandated lead
arrangers and bookrunners.
As reported earlier, the deal consists of a US$200m five-year
amortising tranche A for refinancing, a US$150m five-year
amortising tranche B for refinancing and capital expenditure, and
a US$50m three-year revolving credit tranche C for working
capital. Margins are 300bp, 350bp and 300bp over Libor for
tranches A, B and C respectively.
The blended average margin is 325bp over Libor and the blended
average life is 3.2 years.
There was a 15bp early bird fee for commitments received by
January 8.
Based on the blended average life and margin, and with the
early bird fee, banks get an all-in of 364bp via a 110bp fee for
commitments of US$50m or more, or an all-in of 356bp via an
85bp fee for US$30-49m.
A site visit to Kalimantan was held last week.
Goodhope Asia is an oil palm plantations company majority-
owned by market leader Carson Cumberbatch. According to
the company’s website, it owns 157,889 hectares of plantation
land in Indonesia and Malaysia, of which 74,913 hectares is
developed. – JP
SOUTH KOREA
AB InBev draws on liquidity for OB buy
Anheuser-Busch InBev said it will draw on existing liquidity to
fund its US$5.8bn acquisition of South Korea’s Oriental Brewery
Co Ltd from private equity firms KKR & Co and Affinity Equity
Partners.
14. Issue 1060 • 27 January 2014
14
Although the acquisition does not represent a material increase in
leverage, AB InBev expects to achieve a leverage ratio of below
its optimal two times after the end of 2014.
As of 30 June 2013, AB InBev had total liquidity of
US$11.575bn, which consisted of US$4.5bn available under
committed long-term credit facilities, US$165m under short-
term credit facilities and US$6.910bn of cash, cash equivalents
and short-term investments in debt securities less bank
overdrafts.
AB InBev tapped the syndicated loan market in July 2012 for a
US$14bn financing backing its US$20bn acquisition of Mexico’s
Grupo Modelo.
That financing was split between a US$6bn term loan for up
to two years and an US$8bn three-year term loan. AB InBev
completed the repayment of that financing in June 2013 and the
loan was cancelled.
AB InBev is rated A by Standard & Poor’s,A3 by Moody’s and A
by Fitch. – AR
SWITZERLAND
Trafigura launches US$4bn refi
Trafigura Beheer has launched syndication of a US$4bn loan to
refinance its existing European syndicated revolving credit facility,
the Swiss-based trading house said on January 22.
The multi-currency loan is being arranged by active bookrunners
and mandated lead arrangers BNP Paribas, Lloyds Bank,
Standard Chartered Bank and UniCredit Bank, and non-active
bookrunners and MLAs Bank of China, Rabobank, ING Bank,
RBS and Societe Generale.
The loan is split between a 364-day revolving credit facility and a
three-year facility.
A bank meeting will be held in London on January 29 and the
deal is expected to close in late March.
Trafigura signed a US$4.265bn credit facility in February 2013
via BNP Paribas, ING Bank, Lloyds TSB Bank, SG, StanChart
and RBS.
That loan comprised a US$1.36bn 364-day tranche with two
364-day extension options, and a US$2.905bn three-year tranche
with one 364-day extension option. The one-year facility paid
130bp over Libor while the three-year facility paid 190bp. – AR
TAIWAN
Banks eye US$1bnTCC Intl buyout loan
Taiwanese lenders are eyeing the US$1bn five-year financing for
TCC International Ltd backing its acquisition of shares in Hong
Kong-listed unit TCC International Holdings Ltd (台泥國際集團
有限公司), sources said.
According to sources, a number of banks are forming groups
to bid for the deal, including Bank of Taiwan, CTBC Bank,
First Commercial Bank, Hua Nan Commercial Bank, Mega
International Commercial Bank, Mizuho Bank, Standard
Chartered Bank, Sumitomo Mitsui Banking Corp and Taipei
Fubon Commercial Bank.
The deadline for submitting bids on the mandate is February 13.
The request for proposals was sent out on January 10, sources
said.
The company has asked for the deal to be split into a US$650m
term loan tranche and a US$350m revolving credit tranche.The
term loan has a grace period of three years.
The unsecured facility is pledged over Taiwan-listed parent
Taiwan Cement Corp (台灣水泥股份有限公司), according to
sources.
“In light of the company’s big name and huge amounts of
money, banks are eager to get a piece of the pie,” a Taiwanese
banker said.
TCC International currently owns 56.49% of TCC
International Holdings and announced in November an offer of
HK$3.90 per share to acquire all the outstanding shares it does
not already own.
The total cost of the buyout is around HK$5.59bn (US$721m).
StanChart is handling the voluntary cash offer on behalf of TCC
International.
The Hong Kong subsidiary will be delisted from the Hong
Kong stock exchange after the privatisation is completed. The
take-private plan still requires approvals from Taiwan’s Ministry
of Economic Affairs’ Investment Committee and Hong Kong
Exchanges and Clearing.
As well as backing the buyout, the loan proceeds will be for
refinancing and working capital.
TCC International Holdings obtained a US$550m-equivalent
five-year term loan in December 2011 which comprised a US$
tranche and a HK$ tranche. Margins were 115bp over Libor for
US$ and 130bp over Hibor for HK$. For US$, the borrower
would pay any excess interest rate beyond a 30bp difference
betweenTAIFX and Libor.
Parent company Taiwan Cement Corp last tapped the market a
year earlier with a NT$14bn (US$464m) five-year financing that
paid a margin of 66bp over the secondary CP rate with a pre-tax
interest-rate floor fixed at 1.5%.
TCC International Holdings posted audited consolidated total
assets of HK$3.34bn and net assets of HK$1.58bn as of 31
December 2012.
TCC International Holdings, together with its subsidiaries, is
engaged in the import and distribution of cement in Hong Kong,
and the manufacture and distribution of cement, clinker and slag
powder.
15. Issue 1060 • 27 January 2014
15
Taiwan Cement Corp researches, develops, manufactures and
distributes cements and ready-mix concretes.
TCC International is a wholly owned subsidiary of Taiwan-listed
Taiwan Cement Corp.
Big names
As the new year gets properly underway, a stream of Taiwanese
big names have been coming out for cash, rejuvenating the
island’s contracting market.
In January, conglomerate Formosa Plastics Group (台塑集團) is
seeking a US$700m five-year term loan for its iron ore project
in Australia and a US$296m-equivalent five-year financing for its
China unit Fujian Fuxin Special Steel Co Ltd.
ANZ is the coordinating arranger on the Australian deal. The
facility offers a margin of 200bp over Libor. The borrower will
pay any excess interest rate beyond a 35bp difference between
TAIFX and Libor.
Meanwhile, banks are submitting proposals for the Fujian
loan, which is expected to comprise a US$90m tranche and a
Rmb1.25bn tranche. Proceeds are for a factory expansion and to
buy equipment.
“I have heard quite a few of Taiwan’s large companies sounding
the market recently,” a loan banker said.“Hopefully this is a good
start for the domestic market.” – JP, CZ
Fujian Fuxin Special Steel Co Ltd (福建福欣特殊鋼) is seeking
a US$296m-equivalent five-year financing, sources said.
The facility is expected to comprise a US$90m tranche and a
Rmb1.25bn tranche, according to sources.
Proceeds are for a factory expansion and to buy equipment.
In May 2013, the borrower obtained an increased US$246m-
equivalent five-year offshore term loan comprising a US$168m
tranche and a Rmb480m tranche.
The US$ tranche of the 2013 deal paid a margin of 120bp over
Libor, while the Rmb tranche paid 130bp over the average of
the CNH Hibors of Bank of China Hong Kong and HSBC. On
the US$ tranche, the borrower would pay any excess interest rate
beyond a 35bp difference betweenTAIFX and Libor.
Fujian Fuxin Special Steel is 25% owned by Taiwan-listed
Formosa Plastics Corp and 25% by Formosa Heavy Industries
Corp, according to Formosa Plastics’ 2011 annual report. – CZ
Mandated lead arrangers and bookrunners Chang Hwa
Commercial Bank, E Sun Commercial Bank and First
Commercial Bank launched the NT$2.1bn (US$70m)
five-year financing for Wah Hong Industrial Corp
(華宏新技股份有限公司) and its subsidiary on January 24,
sources said.
E Sun is the facility agent.
The revolving credit is split into a NT$500m tranche A, a
US$50m tranche B and a US$20m tranche C.Tranches A and B
cannot exceed a combined NT$1.5bn.
Margins are 90bp over the secondary CP rate, 130bp over Libor
and 135bp over Libor on tranches A, B and C respectively.
There is a pre-tax interest-rate floor of 1.7% on tranche A. If the
difference between TAIFX and Libor exceeds 35bp, the base rate
of tranches B and C will beTAIFX minus 35bp, instead of Libor.
Banks are invited to join at an upfront fee of 15bp and the MLA
title for commitments of NT$315m or more, or a 10bp fee for
NT$210-314m.
After nine months from first drawdown, there is a 15bp
commitment fee if less than 50% of the funds are drawn.
The facility will start to be reduced from month 36 via five semi-
annual reductions: 10% (1-4) and 60% (5).
Tranches A and B are borrowed via Wah Hong Industrial Corp,
while tranche C is borrowed via subsidiary Wah Hong Holding
Ltd and guaranteed by the parent company.
Responses are due on March 7.
As previously reported, proceeds are for working capital and to
refinance a NT$1.5bn five-year facility signed in May 2010 that
comprised a NT$500m term loan tranche A and a NT$1bn
revolving credit tranche B. Both tranches of the 2010 deal paid a
margin of 85bp over the secondary CP rate.There was an after-tax
interest-rate floor of 1.6% in the six months from first drawdown.
people
ANZ has appointed Frik Dreyer to run its newly established Asian
leveraged finance business, a source said, as the bank continues its
expansion into Asia.
He will be based in Singapore to run a small three-man team,
reporting to Sean Joseph, head of global loans for Asia.
Dreyer had been running ANZ’s loan structuring and execution
business in Australia for the last four years. Prior to that, he was a
director in its structured acquisition finance team. – SK
China’s Industrial Bank Co Ltd (兴业银行) has opened
its first offshore branch in Hong Kong, according to a bank
announcement.
The Shanghai-listed commercial bank said it received a banking
licence from the Hong Kong Monetary Authority on January 10.
Headquartered in Fuzhou, Fujian province, Industrial Bank has 88
onshore branches and two subsidiaries in China.
The bank reported net profit of Rmb33.1bn (US$5.47bn) for the
nine months to September last year.According to its third-quarter
report for 2013, its outstanding non-performing loans stood at
Rmb8.44bn at the end of September for an NPL ratio of 0.63%.
– KW
16. Issue 1060 • 27 January 2014
16
Wah Hong Industrial is a manufacturer and distributor of liquid
crystal display (LCD) materials, bulk moulding compound
(BMC) and moulding products. – CZ
(A,B) Wah Hong Industrial Corp
(C) Wah Hong Holding Ltd
Guarantor: [C]Wah Hong Industrial Corp
Facility type: Revolving credit
Amount: NT$2.1bn-equivalent: [A] NT$500m
[B] US$50m [C] US$20m
Maturity: 5 years
Margins: [A] 90bp over secondary CP rate
[B] 130bp over Libor
[C] 135bp over Libor
Interest-rate floor: [A] 1.7%, pre-tax
TAIFX-Libor diff: [B,C] if exceeds 35bp, base rate:TAIFX
minus 35bp
Repayment: Bullet
Reduction: 5 semi-annual unequal reductions: 10%
(1-4), 60% (5)
Commitment fee: 15bp if less than 50%
MLA fee: 15bp for NT$315m or more
Participation fee: 10bp for NT$210-314m
Mandated lead arrangers: Chang Hwa Commercial Bank (books),
E Sun Commercial Bank (books,
facility), First Commercial Bank (books)
Status: In process, responses due March 7
The three-year financing for Cal-Comp Electronics (Thailand)
Public Co Ltd (泰金寶) and its special purpose vehicle Logistar
International Holding Co Ltd has been increased to US$180m
from US$150m, sources said.
E Sun Commercial Bank, Mega International Commercial Bank,
Taishin International Bank and Taiwan Cooperative Bank are the
original mandated lead arrangers and bookrunners. Far Eastern
International Bank came in to share the MLAB title.
Land Bank of Taiwan and Yuanta Commercial Bank joined as
MLAs. Chang Hwa Commercial Bank, China Development
Industrial Bank, CTBC Bank, Shanghai Commercial & Savings
Bank andTa Chong Bank also participated.
E Sun is the facility agent andTaishin the documentation agent.
Allocations have not been confirmed yet, sources said. Signing is
slated for late February to March.
As previously reported, the unsecured loan comprises a US$75m
term loan tranche A and a US$75m revolving credit tranche B.
Tranche A pays a margin of 125bp over three-month Libor, while
tranche B pays a margin of 125bp over three-month or six-
month Libor. On both tranches, the borrower will pay any excess
interest rate beyond a 35bp difference betweenTAIFX and Libor.
Banks get an upfront fee of 20bp and the MLA title
for commitments of US$20m or more, a 15bp fee and the
co-arranger title for US$15-19m, or a 10bp fee and the manager
title for US$10-14m. – CZ
The NT$4.5bn (US$149m) 4.5-year term loan for Kei Shen
Construction Co Ltd (開晟建設股份有限公司) has closed with
seven banks, sources said.
The loan was oversubscribed to NT$5.9bn and commitments
were scaled back to the original target, sources said.
Taiwan Cooperative Bank is the original mandated lead arranger
and bookrunner. Agricultural Bank of Taiwan and Bank of
Taiwan came in to share the MLAB title.
The other four lenders are Chang Hwa Commercial Bank, Hua
Nan Commercial Bank, Shanghai Commercial & Savings Bank
andTa Chong Bank.
Allocations have not been confirmed yet, sources said. Signing is
expected in March.
As previously reported, the proceeds will back an urban renewal
project in New Taipei City’s Yonghe district.The unsecured loan
is split into a NT$4.16bn tranche A for residential buildings and a
NT$340m tranche B for incidental expenditure.
The facility pays a margin of 116bp over the one-year post office
savings rate.
Banks get an upfront fee of 25bp and the MLAB title for
commitments of NT$1bn or more, a 20bp fee for NT$600-
999m, or a 10bp fee for NT$300-599m. – CZ
SECONDARY LOANS
Vedanta piece on offer at 400s all-in
An up to US$25m piece of Indian miner Vedanta Resources
Plc’s US$1.2bn five-year loan due June 2018 is on offer in the
secondary market at an all-in of 400-425bp, sources said.
The margin is 275bp over Libor.
The amortising loan has a remaining average life of about 2.9
years.
In primary, the loan paid a top-level all-in of 303.57bp based on
an average life of 3.5 years.
Bank of America Merrill Lynch, Barclays, Citigroup, JP Morgan,
RBS and Standard Chartered Bank were the leads.
Proceeds refinanced a US$2.97bn acquisition financing for Cairn
India.
Meanwhile, the Indian borrower is currently in the primary
market with a US$500m four-year loan.
BAML, Barclays, DBS Bank, Deutsche Bank, RBS and StanChart
are the mandated lead arrangers and bookrunners on the new
loan, which will refinance a US$500m 8.75% bond due January
2014.
The deal has a margin of 357bp over Libor and an average life of
3.875 years.
Banks are invited to join at an all-in of 395.7bp via a 150bp fee
for commitments of US$65m and the MLAB title, or an all-in of
389.3bp via a 125bp fee for US$45m and the MLA title. – JP
![Giant Interactive
invites banks to
underwrite LBO
At least five banks have been invited to underwrite an
around US$1bn leveraged buyout financing backing the
US$1.5bn delisting of US-traded Chinese online games
developer and operator Giant Interactive Group Inc
(巨人網絡集團有限公司), sources said.
BNP Paribas, China Minsheng Bank, Credit Suisse, Deutsche
Bank and JP Morgan are among the banks looking to provide the
underwriting commitment, sources said.
According to sources, more bank names could be revealed before
Chinese NewYear.
The leverage on the deal is around four times debt-to-EBITDA,
one source said.
Other terms of the deal are still being finalised.
Giant Interactive posted EBITDA of Rmb1.64bn (US$271m) for
the last 12 months, based on EBITDA margins of around 71%,
according toThomson Reuters.
At the end of September the company had cash of around
Rmb3.71bn on its balance sheet.
The buyout represents an offer of US$11.75 per share by
chairman ShiYuzhu and Baring Private Equity Asia for the 52.8%
of Giant they do not already own.
The offer price represents a 16% premium to Giant Interactive’s
November 22 close on the NewYork Stock Exchange and values
the company at around US$2.82bn.
It is the largest attempted take-private deal involving a US-listed
Chinese company since the highly successful US$3.7bn leveraged
buyout of Chinese display advertising firm Focus Media Holding
Ltd in March last year.
The new owners of Focus Media, including Carlyle Group and
Fosun International, recouped a big portion of their investment
with a dividend recapitalisation six months later.
Chinese lenders hold the key to the success of the financing, as
was evident in Focus Media’s US$1.725bn LBO financing in
March and subsequent dividend recap and amendment exercise
in October. China Minsheng Bank committed US$175m to
the March financing and a whopping US$875m to the October
recap.
Giant Interactive chairman Shi controls Shanghai Giant Lifetech,
which owns 3.6% of China Minsheng Bank and 1.3% of Hua
Xia Bank and is the fourth- and ninth-largest shareholder in
those lenders respectively.
Since launching its first flagship game, ZT Online, in January
2006, Giant Interactive has expanded its offerings. It came out
with a sequel, ZT Online 2, towards the end of 2010, launched
a new flagship game called World of Xianxia last year, and is
preparing to hit the market in 2014 with a new martial arts game
named Jianghu.
It is aiming for a couple of launches every year and currently
there are three to four other games in the pipeline. It is also
diversifying into mobile and web games. – SA, PC, JP
basis pointbasis pointA R e u t e r s L P C P u b l i c a t i o n I s s u e 1 0 6 0 • 2 7 J a n u a r y 2 0 1 4
•
Hong Kong
Citic Pacific returns for HK$5bn loan [P.3]
•
India
Tata Comm mandates trio for US$240m refi [P.8]
•
Japan
Lixil to refinance bridge for Grohe buy [P.9]
•
Malaysia
SapuraKencana raising US$5.35bn loan [P.10]
•
Singapore
SingTel seeks S$1.8bn refinancing [P.12]
•
Taiwan
Banks eye US$1bn TCC acq loan [P.14]](https://image.slidesharecdn.com/20bbcdac-5bdc-48a7-8767-927e9cfbceb4-150518180525-lva1-app6891/85/bp1060-artworklores-1-320.jpg)
