Loan week, September 11-17

Australia

A A$1.95 billion portion of Aquasure Finance's A$4.1billion debt package is currently ongoing in syndication via bookrunners National Australia Bank and Westpac Banking Corp, which sealed a A$1.92 billion seven-year tranche and a A$250 million 3.5-year portion earlier this month.

The margin starts at 350bp over BBSY for the first five years and climbs to 375bp in year six and to 400bp in year seven.

Banks are offered six levels of participation in syndication - mandated lead arrangers lending A$200 million or above get 240bp in upfront fees; lead arrangers contributing from A$150 million to A$199 million earn 200bp; co-arrangers holding A$75 million to A$99 million get 175bp; senior managers taking A$50 million to A$74 million earn 150bp and managers offering A$35 million to A$49 million get 125bp.

The syndication is in place to allow additional lenders to join in the existing A$1.92 billion term loan. Proceeds are to support a PPP project that entails the development of a desalination plant in the Wonthaggi region, Victoria, Australia. 

Austar United Communications has extended a A$225 million portion of its A$850 million senior debt facility signed in August 2007. Repayment, initially due in August 2011, has been extended to August 2014.

The A$225 million portion, currently priced at 140bp over BBSY, will have a 350bp average interest rate from August 2011.

Calyon was the bookrunner on the 2007 facility, while ANZ, BNP Paribas, Bank of Scotland International, Commonwealth Bank of Australia, National Australia Bank, Rabobank and Societe Generale joined as mandated lead arrangers.

Primary Health Care has appointed National Australia Bank as the sole bookrunner of its A$1.2 billion facility.

The debt package initially comprised a A$900 million three-year non-amortising tranche and a A$300 million multi-option revolving working capital facility. However, following an equity raising, the debt facility is only expected to be drawn to approximately A$900 million. National Australia Bank and Deutsche Bank have already committed A$500 million and A$125 million respectively. NAB is expected to launch the deal into the market shortly.

Proceeds are to refinance existing debt that matures in February 2010.

China

Shandong Huatai Paper has successfully secured a Rmb3.5 billion 10-year financing from a consortium of nine banks.

Final allocations saw Industrial & Commercial Bank of China commit Rmb1.2 billion, while China Construction Bank took Rmb600 million. Bank of China, Agricultural Bank of China and Agricultural Development Bank of China pledged Rmb500 million, Rmb400 million and Rmb300 million respectively. Hua Xia Bank and China Minsheng Banking Corp joined in with Rmb250 million tickets.

Guaranteed by the parent company, Shandong Huatai Group, the deal features quarterly repayments after a grace period of three years.

Proceeds are for capital expenditure and working capital purposes.

Syndication of Weiqiao Textile's $118 million loan has been closed via bookrunners Calyon and RBS. China Construction Bank, Mizuho Corporate Bank and Wing Lung Bank joined in as equal-status lead arrangers. Initially, the deal was sealed in August for $105 million, but a $13 million portion was added recently via an accordion feature.

The deal comprises a three-year term loan priced at 180bp over Libor.

Final allocations saw the leads provide $10 million apiece, while mandated lead arrangers Wing Lung Bank, China Construction Bank and Mizuho Corporate Bank provided $20 million, $15 million and $13 million respectively. Arrangers Bangkok Bank, Hang Seng Bank and Oversea-Chinese Banking Corp lent $10 million apiece, while Bank of East Asia, Dah Sing Bank, Intesa Sanpaolo and Union de Banques Arabes et Francaises held $5 million each.

Proceeds are for refinancing and working capital purposes.

Hong Kong

Comba Telecom's $100 million three-year term loan has been further upsized from $85 million and signed via sole mandated lead arranger and bookrunner HSBC. Joining as equal status arrangers were Bangkok Bank, Bank of Ayudhya, Cathay United Bank, Chang Hwa Commercial Bank, China Merchants Bank, China Minsheng Bank, CITIC Ka Wah Bank, Hang Seng Bank, Hua Nan Commercial Bank, Industrial Bank of Taiwan, Taiwan Business Bank and Xiamen International Bank.

The deal is guaranteed by Comba Telecom System Holdings and proceeds are for 3G corporate development and market expansion purposes.

India

Jaiprakash Associates' Rs10 billion fundraising was sealed last week via sole mandated lead arranger State Bank of India.

The deal has a 120bp commitment fee based on the undrawn amount.

Proceeds are for project financing purposes.

A Rs7 billion loan for GTL Infrastructure was signed last week through sole mandated lead arranger and bookrunner State Bank of India.

The nine-year financing pays a floating interest rate of 175bp below SBAR.

Final allocations saw participant Union Bank of India provide Rs2 billion, while Bank of Baroda and Bank of India lent Rs1.5 billion apiece. Punjab National Bank and United Bank of India committed Rs1 billion each. The lead did not participate in the funding.

Proceeds are to support a project that entails a rollout of 3,626 telecom towers for cellular telecom operators in India.

A Rs800 million transaction for Prithvi Ferro Alloys has been signed through sole bookrunner State Bank of India.

The margin on the 7.75-year loan is 25bp over each lender's prime lending rate.

Final allocations saw participants Allahabad Bank and United Bank of India lend Rs175 million apiece, while Indian Overseas Bank gave Rs150 million. Federal Bank, State Bank of Bikaner & Jaipur and State Bank of Travancore provided Rs100 million each. The lead did not participate in the funding.

Proceeds are for the construction of a 9 MVA Ferro Alloy plant and an 18MW captive power plant in Bankura, West Bengal, India.

A Rs53.3 billion nine-year financing for Tata Teleservices has been completed through sole bookrunner IDBI Bank.

Final allocations saw the lead lend Rs1.3 billion, while participant Punjab National Bank committed Rs12 billion. Canara Bank, Syndicate Bank and Union Bank of India provided Rs7.5 billion, Rs6 billion and Rs5.1 billion respectively. Bank of Baroda held Rs5 billion while Corporation Bank lent Rs3.3 billion. State Bank of Travancore provided Rs2.2 billion, while State Bank of Hyderabad, State Bank of India and State Bank of Mysore offered Rs2 billion apiece. South Indian Bank held Rs1.5 billion and Bank of Maharashtra, Dena Bank and Jammu & Kashmir Bank provided Rs1 billion each. United Bank of India rounded off the syndicate with a Rs500 million ticket.

Proceeds are to support the rollout of a GSM mobile telecom network in 17 circles in India.