The initial ratings on the Reg S issue are
the same as those on the guarantor.
Proceeds will be used to complete and
commission the issuer’s BlackGold oil sands
project, as well as meet general corporate
needs.
HSBC (B&D), Citigroup and SMBC Nikko
were bookrunners.
Harvest, a Canadian oil-and-natural gas
company, based in Calgary, Alberta, is a
wholly owned subsidiary of KNOC.
TAIWAN
SYNDICATED LOANS
› WISTRON SOUNDS FOR US$600M
Electronics manufacturer WISTRON is
sounding the market for a loan of up to
US$600m, after having closed a US$700m
facility in June.
Banks are bidding for the mandate to
lead the loan, though the terms and details
have yet to be determined.
Funds are to refinance a US$600m
revolving credit signed in September
2013 and for working capital purposes.
Mega International Commercial Bank
led the revolver, split into a five-year
US$510m tranche A and a three-year
US$90m tranche B, offering respective
interest margins of 119bp and 108bp over
Libor. The borrower would pay any excess
interest rate beyond a 38bp difference
between TAIFX and Libor.
Mega was the sole mandated lead
arranger and bookrunner on the US$700m
one-year accounts receivable factoring
facility completed in June. That facility pays
a margin of 90bp over Libor.
Established in 2001, the Taiwan-listed
borrower was spun off from Acer’s
manufacturing operations.› TYC BROTHER SEEKS NT$3.6BNAutomotive lighting equipment maker TYC
BROTHER INDUSTRIAL has launched a NT$3.6bn
(US$119m) five-year financing, with Chang
Hwa Commercial Bank as mandated lead
arranger and bookrunner.
The facility comprises a NT$3.6bn
revolving credit tranche A1, a NT$2bn
guarantee tranche A2 and NT$3.6bn
revolving credit tranche B. The total size of
the facility cannot exceed NT$3.6bn.
The interest margins on tranches A1
and B are 65bp and 75bp over Taibor,
respectively, with a pre-tax interest rate
floor set at 1.7%, while tranche A2 offers an
annual guarantee fee of 65bp.
Banks can join as MLAs with NT$700m or
more or NT$540m–$699m for upfront fees
of 15bp and 13bp, respectively, or as lead
arrangers with NT$400m–$539m for a 8bp
fee, or as arrangers with NT$200m–$399m
for a 5bp fee. The deadline for responses is
December 12.
Funds are to refinance a NT$3.6bn five-
year loan signed in January 2014 and for
working capital purposes.First Commercial Bank led the 2014
loan, split into a NT$3.6bn tranche A and
a US$30m tranche B. The two tranches
could not exceed a combined NT$3.6bn.
Tranche A offered a margin of 75bp over
the secondary CP rate, with a pre-tax
interest-rate floor fixed at 1.6%, while
tranche B offered a margin of 120bp over
Libor.EQUITY CAPITAL MARKETS
› HON HAI SEALS CB ISSUETaiwan-listed HON HAI PRECISION INDUSTRY has
raised US$500m from an offering of five-
year put three NT dollar-linked convertible
bonds.Heungkuk Life prices US$500m hybrids tightly
Bonds Second Korean insurance hybrid reflects strong trading performance of Kyobo maidenHEUNGKUK LIFE has priced US$500m of hybrid
capital securities in the second offering of its
type out of South Korea.
The rolling 30-year non-call five
subordinated notes priced at par to yield
4.475%, versus initial guidance of 4.625%
area.
If the notes are not called after five years,
they will reset to the original spread of 247bp
over Treasuries. If they are not called on the
10th anniversary and every five years after
that, the coupon will reset and step up by
100bp.
The insurer is rated Baa1/BBB+ (Moody’s/
Fitch) and the same agencies see the
securities as Baa3 and BBB–, respectively.
Kyobo Life had subordinated securities
with the same structure trading at aroundTreasuries plus 150bp. The notes, priced in
July, are rated A3/A– (Moody’s/Fitch).
There were different views on fair value.
Syndicates saw fair value at around 4.75%,
butMUFG viewed it at a tighter 4.3%,
calculated by adding 60bp since they are
rated three notches lower than Kyobo’s
paper, plus 10bp for the extra duration and
10bp to compensate for the smaller scale of
the company.
Orders peaked at US$1.2bn before final
guidance was narrowed. Final demand stood
at around US$700m from 47 accounts.
While the yield on the notes looked attractive
compared with the Kyobo hybrid’s secondary
levels, those bonds have tightened strongly
since issue, and some investors felt that
Heungkuk’s guidance was not leaving much onthe table considering that higher-rated Kyobo
Life’s initial guidance was 4.5% area.
The new issue will help Heungkuk Life
meet higher capital requirements from
Korea’s proposed new insurance capital
regime and the adoption of accounting
standards that require insurers to report
liabilities on mark-to-market value rather
than book value.
Investors in Asia Pacific bought 77% of the
Reg S notes and European accounts bought
23%. In terms of investor types, 91% were
fund managers, 7% were private banks and
2% were banks.
JP Morgan and Nomura were bookrunners.
The bonds were seen around par on Friday
morning.
DANIEL STANTONSouth Korea global equity and equity-related
1/1/17 – 31/10/17
Amount
Name Issues US$(m) %
1 NH Inv & Sec 16 3,583.4 25.0
2 Korea Investment 17 1,359.7 9.5
3 Mirae Asset Daewoo 16 1,025.6 7.2
4 Goldman Sachs 4 910.2 6.4
5 JP Morgan 4 760.2 5.3
6 Samsung Sec 7 720.1 5.0
7 Citigroup 4 702.3 4.9
8 Shinhan Financial 12 642.7 4.5
9 Morgan Stanley 2 535.3 3.7
10 SK Sec 2 476.5 3.3
Total 130 14,316.8Source: Thomson Reuters SDC Code: C1Q