COUNTRY REPORT CHINAsized three-year loan. UOB also led that
deal, while Agricultural Bank of China, First
Gulf Bank and Industrial & Commercial
Bank of China were the other lenders. That
deal offered an all-in pricing of 180bp, via
an upfront fee of 120bp, based on a margin
of 140bp over Libor.
New Hope is targeting international
expansion as growth in animal-feed
demand slows at home.
› H&H INCREASES LOAN TO US$450M
Paediatric nutritional products maker
Health and Happiness (H&H) International
Holdings has increased its three-year
refinancing to US$450m-equivalent from
the US$350m-equivalent target.
Goldman Sachs was the mandated lead
arranger and bookrunner of the facility, which
has a US$400m-equivalent term loan and a
US$50m-equivalent revolving credit facility.
The overall facility is available in US and
Australian dollars.
The interest margins range from 150bp
to 225bp over Libor/BBSY tied to H&H’s
ratings from Moody’s and S&P. The initial
margin is 200bp. Lenders were offered a
top-level all-in pricing of 233.33bp via a
participation fee of 100bp.
The borrower is BIOSTIME HEALTHY AUSTRALIA
INVESTMENT, an indirect unit of H&H.
Hong Kong-listed H&H, formerly Biostime
International Holdings, and other units are
guarantors of the senior secured term loan.
The facility will refinance a US$450m
three-year senior secured term loan signed
in April 2016 with 12 lenders, including
MLABs and underwriters Goldman Sachs
and Industrial & Commercial Bank of China.
That borrowing, which had a US$239.5m
tranche and a US$210.5m-equivalent portion
in Australian dollars, paid a top-level all-in
pricing of 465bp based on a margin of 375bp
for an average life of 2.5 years.
Proceeds from the US$50m senior
secured revolver will be used for general
corporate purposes and working capital.
The US$450m loan from 2016 was used
to refinance a bridge loan of the same size
that backed Biostime’s A$1.39bn (US$1bn
then) acquisition of an 83% stake in
Australian vitamin maker Swisse Wellness.
For full allocations, see http://www.ifrasia.com.› DUNAN TO USE LOAN TO AID LIQUIDITYPrivately owned explosives and precision-
equipment maker DunAn Holding Group
has obtained a Rmb15bn (US$2.2bn) three-
year term loan to help ease its cash strain,
according to company statements.
HANGZHOU MINZE TECHNOLOGY, its subsidiary,
is the borrower.Ten lenders participated in the deal,
according to stock exchange filings on
Monday from the group’s two Shenzhen-
listed subsidiaries Anhui Jiangnan Chemical
Industry and Zhejiang DunAn Artificial
Environment Equipment.
The banks are: Agricultural Bank of
China, Bank of China, Bank of Nanjing, China
Construction Bank, China Citic Bank, China
Development Bank, China Zheshang Bank,
Industrial Bank, Industrial & Commercial
Bank of China and Nanyang Commercial Bank
(China).
The deal pays an interest margin of 100%
of the PBoC rate, which is 4.75% for three-
year tenors. Interest payments will take
place annually.
A partial drawdown of Rmb5.2bn on the
loan had already taken place by the end
of August, according to the statements.
Proceeds will be used for working capital.
DunAn ran into a financing crisis
following a failed attempt to raise
Rmb600m through a bond on May 3 and a
rating downgrade to AA- from AA+ on May
4 from Dagong Global Credit Rating.
The downgrade was due to DunAn’s
weakened cashflow position and concerns
over its ability to repay debt after the
Chinese government’s deleveraging efforts
drained liquidity out of the market and
pushed up bond yields.ARE YOUR COLLEAGUES AS
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