At the same time, SUMITOMO MITSUI BANKING
CORP sold US$1bn two-year floating-rate
notes with a guarantee from SMBC’s
New York branch, through the same
bookrunners.
The two-year 3(a)(2) senior unsecured
notes priced at three-month Libor plus
37bp, the tight end of guidance of 40bp
area, plus or minus 3bp, and well inside
initial thoughts of 50bp area.
The notes are expected to be rated A1/A
(Moody’s/S&P).
SYNDICATED LOANS
› CALSONIC KANSEI TAPS M&A LOAN
Japanese auto parts maker CALSONIC KANSEI
is raising a jumbo loan of about €5bn
(US$5.8bn) to back its proposed acquisition
of the high-tech car parts unit of Fiat
Chrysler Automobiles, sources said.
Mizuho Bank is expected to lead, while
MUFG and Sumitomo Mitsui Banking Corp will
also be involved in the financing, which
will be denominated in euros and yen.
Mezzanine financiers have also been
sounded out for a potential borrowing.
KKR & Co-owned Calsonic is close
to a deal to buy FCA’s Magneti Marelli
after being in talks for months. Calsonic
had made an initial proposal of €5.8bn
for Magneti, Reuters reported in mid-
September.
The size of the total debt financing is yet
to be determined as the final enterprise
value could be revised after the Japanese
group conducts in-depth due diligence on
its Italian rival.
Both parties aim to reach an agreement
by the end of this month, the sources said.
KKR bought Calsonic from Nissan Motor
and other shareholders in 2016 and funded
the purchase with a ¥430bn seven-year
senior leveraged buyout loan. Mizuho,
Development Bank of Japan, MUFG,
Mitsubishi UFJ Trust & Banking and SMBC
clubbed that loan in March last year.
› FAMILYMART TAPS DEBT, CASH FOR M&A
FAMILYMART UNY HOLDINGS will fund its planned
stake purchase in rival Don Quijote
Holdings with a mix of cash on hand,
borrowings from financial institutions and
hybrid financing, the Japanese retailer said
in a statement last Thursday.
FamilyMart Uny said it would make a
tender offer of ¥6,600 per Don Quijote
share for a total of ¥211.9bn (US$1.89bn)
via a subsidiary.
The acquisition is expected to be
completed in January 2019.
As part of the deal, FamilyMart Uny
would sell all of its remaining 60% stake in
its Uny general merchandise store unit to
Don Quijote, which is looking for locations
to open more stores, popularly known as
“Donki”.
Don Quijote would pay ¥28.2bn for the
additional stake, after taking a 40% slice last
year.
The companies have already taken
steps including the conversion of six Uny
locations into a new store format dubbed
“MEGA Don Quijote Uny.” Sales from these
stores nearly doubled after the conversion,
the companies said.
FamilyMart Uny is Japan’s second-largest
convenience store operator with about
16,700 locations. Don Quijote is Japan’s
largest discounter.
In a separate statement, Don Quijote said
it would change its name to Pan Pacific
International Holdings Corp and that it had
nominated founder Takao Yasuda back to
its board.
Yasuda stepped down from the board
in June 2015. The company said Yasuda,
based in Singapore, would lead its overseas
operations from there after rejoining the
board.› RENESAS SIGNS BRIDGE FOR IDT BUYRENESAS ELECTRONICS last Thursday signed a
¥728bn one-year bridge loan to back its
US$6.7bn acquisition of US chip-design firm
Integrated Device Technology, the Japanese
chipmaker said in a statement.
MUFG and Mizuho Bank are providing the
bridge, which will later be taken out with a
long-term loan.
Last month, Renesas agreed to pay US$49
per share in cash for IDT’s outstanding
shares. The acquisition is expected to be
completed in the first half of 2019.
The borrower last tapped the syndicated
loan market in October 2016 when it raised
a ¥50bn 5.75-year loan also arranged by
MUFG and Mizuho.EQUITY CAPITAL MARKETS
› PARK24 PRICES ¥35BN CB BELOW RANGEJapanese parking lot operator PARK24 has
priced a ¥35bn (US$312m) zero-coupon
convertible bond below the indicative
conversion premium.
The company sold the seven-year CB at a
conversion premium of 12.49% versus the
indicative range of 24%–34%. The issue price
is at 100% and the offer price at 102.5%.
Shares of Park24 fell 8% to close at ¥3,145
last Friday.
The TSE-listed company plans to use the
proceeds to repay debt of approximately¥25bn in connection with the acquisition
of National Car Parks. The remainder will
be used for capital investments to support
business growth.
There is a lock-up of 180 days for the
company.
Nomura is the sole bookrunner and sole
lead manager.MACAU
EQUITY CAPITAL MARKETS
› STUDIO CITY GETS SHAREHOLDER SUPPORTShareholders Melco Resorts and New Cotai
have indicated interest to buy up to 88.9%
of STUDIO CITY INTERNATIONAL’s NYSE IPO of up
to US$359m.
Studio City, the Macau gaming resort
of Lawrence Ho’s Melco Resorts &
Entertainment, is selling 28.75m American
depositary shares at an indicative price
range of US$10.50–$12.50 each. The price
range represents a 2019 forecast EV/Ebitda
of 6.5–6.7.
MCE Cotai Investments, a subsidiary
under Melco Resorts, plans to buy 15.33m
ADS and New Cotai 10.22m ADS.
Prior to the IPO, Melco Resorts owns
60% of Studio City. New Cotai, a US joint
venture of Silver Point and Oaktree Capital,
controls the remaining 40%.
There is a 15% greenshoe for the IPO.
Credit Suisse, Deutsche Bank and Morgan
Stanley are the joint bookrunners.
The deal will price on October 17.
Proceeds will be used for debt repayment.
Studio City posted a net loss of US$14.8m
for the first half of 2018, compared to a
US$47.0m net loss for the first half of 2017.
The company lost US$76.4m in 2017.MALAYSIA
DEBT CAPITAL MARKETS
› AFFIN ISLAMIC SETS UP PROGRAMMEAFFIN ISLAMIC BANK plans to set up a M$5bn
(US$1.22bn) Islamic MTN programme.
Under the programme, the Malaysian
Islamic bank can sell senior sukuk or Tier
2 sukuk under the murabahah format or
Additional Tier 1 capital sukuk under the
wakalah format.
RAM has rated the senior notes at AA3,