IFR 03.21.2020

58 International Financing Review March 21 2020

interest margin of 110bp over Libor and an

average life of 3.425 years.

0ROCEEDSûWILLûRElNANCEûAû53MûTHREE

year loan completed in 2017. StanChart was

the sole MLAB of that facility, which offered

top-level all-in pricing of 143bp based on an

interest margin of 112bp over Libor.

TSINGHUA UNIGROUP REPAYS

Technology conglomerate TSINGHUA UNIGROUP

has repaid a US$701m loan that matured on

March 13 after failing in its attempts to

amend and extend the facility.

The repayment lays to rest – at least for

the time being – concerns among some

LENDERSûABOUTûTHEûCOMPANYSûlNANCIALSû

and cash position amid looming debt

maturities.

The next test for the company will be in

June, when a US$193m-equivalent three-

YEARûlNANCINGûCOMESûDUE

The Tsinghua University-backed

chipmaker had launched an A&E exercise

lVEûMONTHSûAGOûVIAû#REDITû3UISSEûSEEKINGûTOû

extend by 18 months the maturities of both

the US$701m and US$193m-equivalent

loans.

However, lenders have resisted

consenting to the A&E because of concerns

about the company’s rising debt burden and

uncertainty over the group’s shareholding

structure.

As at June 30 2019, Tsinghua Unigroup

had around Rmb53bn (US$7.5bn) in debt

due within a year, while cash and cash

equivalents totalled approximately

Rmb39bn, according to its 2019 interim

report.

CHINA WATER AFFAIRS RETURNS

Hong Kong-listed CHINA WATER AFFAIRS GROUP is

raising a US$100m three-year loan,

returning to the market barely three

months after signing a slightly smaller but

longer-tenor facility.

Far Eastern International Bank is the

mandated lead arranger and bookrunner of

the latest bullet deal, which is offering

tighter pricing than its previous borrowings.

The borrower supplies water and provides

waste-water treatment services in China.

WANDA SPORTS COMPLETES REFI

Nasdaq-listed WANDA SPORTS GROUP has

obtained a US$240m 364-day bilateral loan

TOûRElNANCEûANDûPRE

PAYûANûEXISTINGûSENIORû

loan with the same tenor.

Credit Suisse Singapore branch provided the

NEWûlNANCING

The loan carries a guarantee from parent

Dalian Wanda Group and offers an opening

interest margin of 300bp over Libor, which

steps up gradually every month up to

1,100bp over Libor in the 12th month.

Financial covenants stipulate that the

borrower’s net debt to adjusted Ebitda ratio

must not exceed 5 times.

Beijing-headquartered Wanda Sports

Group organises sports events including

triathlon, mountain biking and obstacle

course racing, and provides media and

marketing services for football and winter

sports.

Last October, another group company,

Wanda Sports & Media (Hong Kong) Holding,

OBTAINEDûAû53MûTHREE

YEARûRElNANCINGû

That loan offered all-in pricing of 400bp

based on a margin of 275bp over Libor and

an average life of 2.6 years.

HONG KONG

SHIMAO SEEKS WAIVERS

Shanghai-based developer SHIMAO PROPERTY

HOLDINGS is seeking waivers from lenders on

a HK$3.915bn (US$504m) 4.5-year hotel

development loan, following delays in

satisfying regulatory conditions relating to

the security on the borrowing.

Shimao has been unable to obtain

documentation that would have allowed it

to commence operations of two Hong Kong

hotels that serve as security, partially

because of the Hong Kong government’s

imposition of restrictions on public services

to contain the spread of the coronavirus.

The HK$3.915bn loan backed the

development of the hotels in Tung Chung

and requires Shimao to obtain an

OCCUPATIONûPERMITûANDûAûCERTIlCATEûOFû

compliance before the hotels start

operations.

The waiver request comes even as Shimao

set out earlier this month on a new HK$4bn

LOANûTOûRElNANCEûTHEûEXISTINGûBORROWINGû

maturing in May.

The new loan offers all-in pricing below

200bp.

The two hotels – the Sheraton Hong Kong

Tung Chung Hotel and Four Points by

Sheraton Hong Kong, Tung Chung – will also

serve as security for the new borrowing and

are expected to open later this year.

K WAH RAISES HK$4bn

K WAH FINANCIAL SERVICES has raised a HK$4bn

(US$515m) four-year loan from a dozen

lenders.

Oversea-Chinese Banking Corp, Bank of China

(Hong Kong), Bank of Communications Hong Kong

branch, Chong Hing Bank, DBS Bank, Hang Seng

Bank, HSBC, Industrial & Commercial Bank of

China (Asia), SMBC and Shanghai Pudong

Development Bank Hong Kong branch were the

mandated lead arrangers and bookrunners

of the transaction. HSBC was also the facility

agent.

Lead arrangers are Agricultural Bank of China

and Mega International Commercial Bank.

The deal, which is split into a HK$2.4bn

revolving credit Tranche A and a HK$1.6bn

bullet term loan Tranche B, offered all-in

pricing below a margin of 100bp.

The guarantor is the borrower’s Hong

Kong-listed parent K Wah International

Holdings.

Funds are for general corporate purposes

ANDûRElNANCING

The borrower’s previous visit to the loan

market was in January 2018 for a HK$7bn

lVE

YEARûCLUBûLOANû)TûOFFEREDûALL

INûPRICINGûOFû

97bp over Hibor based on a margin of 82bp

and upfront fee of 75bp.

SHANGHAI INDUSTRIAL GETS HK$2.1bn

CLUB

2ED

CHIPûlRMû3HANGHAIû)NDUSTRIALû(OLDINGSû

has raised a HK$2.1bn-equivalent dual-

tranche club loan from seven lenders.

Agricultural Bank of China, Bank of China

(Hong Kong), Hang Seng Bank, Oversea-Chinese

Banking Corp, Shanghai Pudong Development

Bank, SMBC and United Overseas Bank are the

LENDERSûOFûTHEûlVE

YEARûTRANSACTIONûWHICHûISû

available in either HK or US dollars.

SIHL FINANCE, a wholly owned subsidiary of

Shanghai Industrial Holdings, is the

borrower, while the parent is the guarantor.

The borrower’s last visit to the loan

market was in January 2019, when it raised

Aû(+BNûlVE

YEARûCLUBûLOANû

INDIA

SBI HELPS LIFT HDFC

HDB FINANCIAL SERVICES, the non-banking

lNANCIALûUNITûOFû)NDIASûLARGESTûPRIVATE

SECTORû

lender HDFC Bank, has increased its debut

offshore three-year loan to US$530m, with

two banks joining in general syndication.

State Bank of India, which was one of the

three mandated lead arrangers,

bookrunners and equal underwriters, took a

lNALûHOLDûOFû53MûINCREASINGûITSûINITIALû

underwritten commitment by US$150m.

Bank of Baroda and HSBC were the other

MLABUs for the bullet loan, which was

launched into general syndication at a

US$300m size with a greenshoe option.

BDO Unibank and Punjab National Bank

joined in general syndication with US$80m

combined.

The deal paid top level all-in pricing of

133bp via a 59bp participation fee and

including an early bird fee of 10bp, with an

interest margin of 110bp over Libor.

9 IFR Loans 2325 p 55 - XX.indd 58 20 / 03 / 2020 19 : 00 : 39