› KANGMEI GETS EB APPROVAL
KANGMEI INDUSTRIAL INVESTMENT has received
a no-objection letter from the Shanghai
Stock Exchange to list and transfer its
planned private placement of three-year
exchangeable bonds of up to Rmb5bn in
KANGMEI PHARMACEUTICAL.
Kangmei Industrial owns 1.64bn shares
in Kangmei Pharmaceutical, representing
about 33.2% of the company’s total issued
capital.
GF Securities is working on the transaction.
HONG KONG
DEBT CAPITAL MARKETS
› NAN FUNG PRINTS IN DOLLARS
NAN FUNG sold US$410m of 10-year bonds
at US Treasuries plus 175bp, versus initial
price guidance in the 190bp area, with five
joint bookrunners.
At one point, orders exceeded US$1.1bn,
including interest from the leads.
Nan Fung Treasury is the issuer on the
notes and Nan Fung International Holdings,
rated Baa3/BBB–/BBB, is the guarantor. The
Reg S senior unsecured notes have initial
ratings of BBB–/BBB (S&P/Fitch).
The property developer plans to use the
proceeds for general working capital.
HSBC , Bank of China (Hong Kong) , DBS Bank ,
JP Morgan and UBS were joint bookrunners.
› OCBC ISSUES THREE-YEAR NOTES
OVERSEA-CHINESE BANKING CORP last Monday
issued HK$1.4bn (US$179.2m) of three-year
bonds priced at 1.59%.
Sole lead manager and bookrunner
Nomura privately placed the notes, rated
Aa1 by Moody’s, in Hong Kong. They
will be drawn off a US$10bn global MTN
programme.
SYNDICATED LOANS
› SAMSON STRENGTHENS REFI SIZE
SAMSON PAPER has increased to HK$780m
a dual-tranche 3.5-year refinancing loan,
following commitments from 10 banks in
general syndication.
Mandated lead arrangers and bookrunners
CTBC Bank , Maybank and Mizuho Bank launched
the loan at an initial size of HK$570m.
The term loan tranche A and revolving
credit tranche B were increased to
HK$522.6m and HK$257.4m from HK$380m
and HK$190m, respectively.
The loan offers a top-level all-in pricing
of 258.6bp, based on an interest margin
of 245bp over Hibor and an average life of
2.941 years.
Signing took place on September 21
and the facility is expected to be drawn on
Thursday.
Funds are to refinance a HK$728m 3.5-
year loan signed in March 2015 and for
working capital purposes. China Citic Bank
International, CTBC, Maybank and Mizuho
Bank were MLABs on that loan, which paid
a top-level all-in pricing of 305bp, based
on a margin of 270bp over Hibor and an
average life of 2.952 years.
For full allocations, see http://www.ifrasia.com.EQUITY CAPITAL MARKETS
› V3 GROUP PREMARKETS HK FLOATLifestyle products company V3 GROUP ,
best known for its Osim massage chairs,
premarketed a Hong Kong IPO last week.
The start of bookbuilding is subject to
investor feedback, according to people close
to the plans.
The IPO size has not been finalised, but
one of the people said V3 plans to sell about
25% of its enlarged share capital. Another
person close to the process said earlier thecompany targeted an IPO valuation of about
US$1bn.
Osim founder Ron Sim delisted the
company from the Singapore Stock
Exchange in August 2016 and took
it private at a cost of around S$1bn
(US$713m).
Apart from Osim, V3 also owns tea
company TWG Tea and the exclusive
franchise rights of GNC, a seller of health
and nutrition-related products.
BOC International , Credit Suisse and Jefferies
are the joint sponsors.
The company plans to use part of the IPO
proceeds to pay down outstanding loans
used to finance the Osim delisting. It will
also use the funds raised for acquisitions,
such as the purchase of a stake of up to 75%
in Futuristic, a Singapore-based maker of
store fixtures.
V3 posted a 2016 net profit of S$52m, up
5.2% from a year earlier.› STX ENTERTAINMENT EYES HK IPOSTX ENTERTAINMENT is looking to raise around
US$500m from a Hong Kong IPO next year
via Goldman Sachs and JP Morgan , according
to sources familiar with the plan.
The US film and television production
company has backing from private
investment firm TPG and a number of
Chinese and Hong Kong investors, including
Hony Capital, PCCW and Tencent.HGC facility draws crowd
Loans I Squared Capital set for memorable debut with army of lendersInvestment manager I Squared Capital is set
for a memorable debut in the Asian leveraged
buyout loan market with an army of lenders
committing to the US$900m-equivalent
borrowing to back its acquisition for the
fixed-line phone unit of Hong Kong tycoon Li
Ka-Shing.
The three leads on the five-year loan have
allocated the HK$7.137bn (US$914m) facility
among an initial group of lenders.
Eighteen banks, including senior mandated
lead arrangers and bookrunners Credit
Agricole , Credit Suisse and Deutsche Bank ,
signed the loan on Monday with drawdown
slated for Thursday.
Allocations for 15 lenders participating as
MLAs have been confirmed. The allocations
for the three leads will further change
after another 15–16 banks revert with firm
commitments and complete procedures
relating to the same.
The senior secured financing, denominatedin Hong Kong dollars, finances I Squared
Capital’s HK$14.497bn LBO of HUTCHISON
GLOBAL COMMUNICATIONS , a unit of Hutchison
Telecommunications Hong Kong Holdings.
The interest margin is tied to a ratio of
total net borrowings to Ebitda: for the first
12 months following the drawdown date,
the interest margin will be 285bp based on
a ratio of 4.5x or above. The margin will be
adjusted to 260bp for 3.75x–4.4x; 235bp for
3x–3.74x and 210bp for less than 3x.
Based on the opening margin of 285bp
over Hibor and average life of 4.5225 years,
lenders were offered a top-level all-in pricing
of 312.64bp.
ASIA CUBE GLOBAL COMMUNICATIONS , a wholly
owned subsidiary of a fund managed by
I Squared Capital, is the borrower of the
financing. Credit Suisse was the sole financial
adviser to I Squared.
For full allocations, see http://www.ifrasia.com.
PRAKASH CHAKRAVARTI, CAROL ZHONG