IFR International - 08.09.2018

(Michael S) #1
68 International Financing Review September 8 2018

ASIA-PACIFIC


AUSTRALIA


SCHWARTZ FAMILY SEEKS A$542.3m

The Schwartz Family Company is seeking a
A$542.3m (US$390m) three-year senior term
loan to amend and extend an acquisition
financing from last year and to fund a new
acquisition.
ANZ is the mandated lead arranger,
bookrunner and underwriter of the new
loan, split into a A$407.275m three-year
Tranche A and a A$135m three-year new
money Tranche B.
Tranche A will refinance a loan of the
same size signed in August last year that
funded the acquisition of the Sofitel Darling
Harbour hotel and the refinancing of debt
for the Ibis King Street Wharf and Rydges
World Square hotels.
Tranche B will go toward the acquisition
of the Four Points Hotel in Sydney’s Central
Park precinct from fund manager Impact
Investment Group.
The new loan offers an interest margin of
80bp over BBSY and a line fee of 80bp if the
loan-to-value ratio is 55% or below. The
margin and the fee are 85bp over BBSY and
85bp, respectively, if the LTV is over 55%.
The opening margin and fee are 85bp
over BBSY and 85bp based on the initial LTV
of 59%.
Tranche A will involve an extension of the
tenor to October 2021. Lenders agreeing to
the A&E exercise earn a 10bp extension fee.
For Tranche B, lenders joining as MLAs for
commitments of A$25m or more receive a
participation fee of 30bp, while lead arrangers
with A$15m–$24m tickets earn 27.5bp.
BEST HOTEL is the borrower on Tranche A,
while IIG CENTRAL PARK HOTEL is the borrower
on Tranche B. The hotels will form part of
the security for the transaction.
The 2017 loan offered a margin of 80bp
over BBSY and a line fee of 80bp. Lenders
were offered a top-level upfront fee of
32.5bp.
Schwartz, a private family group, has
agreements with various global hospitality
groups, including Accor, Intercontinental
Hotels Group and Event Hospitality &
Entertainment, to manage its hotel
portfolio.

AUSNET AGREES A$700m LOANS

Electricity transmission network operator
AUSNET SERVICES has agreed A$700m of bank
loans that will be used to refinance existing
debt and fund capital expenditure.

The financing comprises a A$300m five-
year facility, a A$100m six-year facility and a
A$300m seven-year facility.
The company said that it maintains a
diversified debt maturity profile and access
funds from a variety of sources.
A strong investment grade rating – A-
from S&P and A3 from Moody’s – allows for
ready access to debt markets in Australia
and offshore, the company said.
As of August 30, AusNet had A$759m of
undrawn committed bank facilities.
AusNet owns and operates Victoria’s
electricity transmission network as well as one
of five electricity distribution networks, and one
of three gas distribution networks in Victoria.
The company also provides a range of
energy and infrastructure products and
services to business, government,
communities and households through its
Commercial Energy Services group.

CHINA


SHANGHAI PHARMA BORROWS

Shanghai Pharmaceuticals Holding has
closed a US$153m three-year bullet loan to
fund the acquisition of an additional 26.3%
stake in Chinese drug company Techpool
Bio-pharma from a Swiss subsidiary of
Japan’s Takeda Pharmaceutical.
Sole underwriter Standard Chartered pre-
funded the facility before launching it into
limited syndication. Four other lenders joined


  • DBS, Bank of Taiwan and ING as mandated lead
    arrangers, and KDB as lead arranger.
    SHANGHAI PHARMACEUTICALS (HK) INVESTMENT, a
    wholly owned offshore unit, is the borrower
    on the loan and the acquiring entity.
    The loan’s interest margin is tied to the
    credit enhancement from the Shanghai-based
    parent. If it provides a guarantee, the margin
    will be 105bp over Libor. Should Shanghai
    Pharma only provide a keepwell agreement,
    the margin will be 115bp over Libor.
    Mandated lead arrangers committing
    US$30m or more were offered top-level
    all-in pricing of 130bp or 120bp via upfront
    fees of 45bp, while lead arrangers joining
    with US$20m–$29m were offered all-in
    pricing of 126bp or 116bp via a 33bp fee.
    Shanghai Pharma acquired Takeda
    Chromo Beteiligungs, a subsidiary of
    Switzerland-based Takeda Pharma AG, for
    US$144m on August 21, which gave it an
    additional 26.3% stake in Chinese
    pharmaceutical firm Techpool Bio-pharma.
    Following the deal, Shanghai Pharma’s
    stake in Techpool rose to 67.1%.
    Shanghai Pharma is listed in Shanghai
    and Hong Kong, with the Shanghai
    municipal government as its indirect
    biggest shareholder.


BAOXIN AUTO TO BORROW US$200m

A dual-tranche US$200m three-year term
loan for Chinese auto dealership GRAND
BAOXIN AUTO GROUP is being priced at 308bp
over Libor with an average life of 2.925
years.
Standard Chartered is the mandated lead
arranger and bookrunner.
MLABs committing US$50m or more will
receive all-in pricing of 349bp via a
participation fee of 120bp, while MLAs
joining with US$30m–$49m earn an all-in of
337bp via an 85bp fee. Lead arrangers
coming in with US$20m–$29m will receive
all-in pricing of 326.8bp via a 55bp fee, while
arrangers joining with US$10m–$19m earn
an all-in of 316.5bp via a 25bp fee.
Special-purpose vehicle BAOXIN AUTO FINANCE I is
the borrower on Tranche A, while Grand
Baoxin Auto Group is the borrower on Tranche
B. China Grand Automotive Services is the
guarantor on both portions, the respective sizes
of which have not been disclosed.
In August 2017, Grand Baoxin Auto Group
increased a facility to US$837.4m from
US$763.4m after it exercised a greenshoe
option. StanChart also led that loan, which
offered top-level all-in pricing of 365bp
based on a margin of 320bp over Libor and
an average life of 2.925 years.

WESTERN MINING DEBUTS WITH
US$100m LOAN

Non-ferrous metals miner and trader
WESTERN MINING GROUP is making its loan
market debut with a US$100m three-year
facility.
Nanyang Commercial Bank is the mandated
lead arranger and bookrunner of the
transaction, which has a two-year put option
and a US$80m greenshoe.
The deal offers an interest margin of
260bp over Libor and has an average life of
2.45 years.

ASIA-PACIFIC LOANS BOOKRUNNERS – FULLY
SYNDICATED VOLUME (INCLUDING JAPAN)
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
1 Mizuho 315 60,334.88 17 .2
2 Sumitomo Mitsui Finl 377 4 2,400.47 12. 1
3 MUFG 470 39,673.85 11.3
4 Bank of China  178 33,186.99 9 .4
5 ANZ 71 14,815.59 4 .2
6 HSBC 56 11,491.29 3.3
7 Standard Chartered  53 9,074.37 2.6
8 Credit Agricole 25 7 ,907.43 2.3
9 DBS Group 47 6,034.83 1. 7
10 Citigroup 27 5,865.38 1. 7
Total 1,809 35 1,318.68
Proportional credit
Source: Thomson Reuters SDC code: S3a

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