COUNTRY REPORT TAIWANA, a NT$1bn revolving credit tranche B, a
NT$1.8bn revolver tranche C and a NT$650m
guarantee facility tranche D.
The deal pays a margin ranging from
90bp to 115bp over Taibor, with an after-
tax interest rate floor set at 2.15%.
Banks were invited to join as MLAs
with commitments of NT$2bn or more
or NT$1.5bn–$1.9bn or NT$1bn–$1.4bn
for upfront fees of 23bp, 21bp or 19bp,
respectively, as lead arrangers with
NT$700m–$999m tickets for an 14bp fee,
or as arrangers with NT$500m–$699m or
NT$300m–$499m tickets for fees of 11bp or
6bp, respectively.
Signing is slated for late October.
Funds are to refinance a NT$7.7bn five-
year loan raised in January 2015. Chang
Hwa also led that deal, which paid a margin
ranging from 100bp to 120bp over Taibor.
› WONDERFUL ASSETS BACK FOR REFI
WONDERFUL ASSETS has launched a NT$4.8bn
five-year loan, returning to the loan market
after an absence of more than two years.
Mega International Commercial Bank is the
mandated lead arranger and bookrunner
of the deal, which comprises a NT$2.8bn
tranche A for Wonderful Assets and a
NT$2bn tranche B for its unit TIAN JIANG.
The interest margin ranges from 105bp
to 175bp over Mega’s one-year time deposit
rate.
Banks are being invited to join as MLAs
with commitments of NT$800m or more
for an upfront fee of 28bp, as co-arrangers
with NT$550m–$799m tickets for an 18bp
fee, or as participants with NT$300m–
$549m tickets for an 8bp fee. The deadline
for responses is November 16.
Funds are for refinancing and working
capital purposes.
The borrower last tapped the loan
market with a NT$2.8bn five-year financing
in May 2016. Mega also led that deal,
which paid a margin of 165bp over the
same benchmark as that on the latest deal,
according to LPC data.› BES ENGINEERING BACK WITH REFIEngineering and construction contractor
BES ENGINEERING has launched a NT$3.7bn
three-year facility, returning to the loan
market after three years.
Bank of Taiwan is the mandated lead
arranger and bookrunner of the deal,
which offers a margin of 125bp over the
two-year post office savings rate, with a pre-
tax interest rate floor set at 1.95%.
Banks are being invited to join as
participants with NT$200m or more for
a 5bp fee. The deadline for responses is
November 16.
Funds are to refinance the NT$6.4bn
multi-tranche refinancing the Taiwan-listed
borrower raised in November 2015.First Commercial Bank, International
Bills Finance, Mega International
Commercial Bank and Taiwan Cooperative
Bank were the MLABs of the 2015
transaction, which paid a margin of 158bp
over the two-year post office savings rate.› E-DA CLOSES NT$8.73BN FACILITYReal estate developer E-DA DEVELOPMENT has
closed its NT$8.73bn 15-year loan to back
the construction of a shopping mall in
Kaohsiung.
Land Bank of Taiwan was the mandated
lead arranger and sole bookrunner of the
transaction, which has a NT$3bn term loan
tranche A, a NT$5bn term loan tranche B
and a NT$730m term loan tranche C.
The loan offers an interest margin
of 141bp over the one-year post office
savings rate, with a pre-tax interest rate
floor set at 1.7%. Banks were offered a
top-level upfront fee of 18bp. Signing was
on October 5.
The borrower is a wholly owned unit of
E-Da.
E-Da last tapped the market in June 2011
with a NT$6.5bn loan. Bank of Taiwan was
the MLAB on that deal, which comprised a
NT$5.5bn 12-year tranche for refinancing
and a NT$1bn six-year tranche for capital
expenditure. The margin was 170bp over
the one-year savings rate of Bank of Taiwan.
For full allocations, see http://www.ifrasia.com.Hyflux perp holders form committee
Restructuring Embattled company gets one bid for Tuaspring divestmentA steering committee of bondholders has
been formed to represent more than 34,000
investors holding S$900m (US$650.6m)
of Hyflux perpetual notes and preference
shares.
The committee, formed with the assistance
of Securities Investors Association Singapore,
is the second such group formed following
the establishment of a steering committee
to represent investors holding Hyflux senior
unsecured bonds.
Hyflux’s bank debt is estimated at
S$1.84bn, on top of some S$265m in senior
bonds and S$900m in preference shares and
perpetual notes. The embattled Singapore
water treatment company was granted in
late June a six-month moratorium on any
legal proceedings against it.
In an update at a Singapore High Court
hearing on Monday, Hyflux said it was in
discussions to bring in strategic investors
to rescue the financially strapped watertreatment company. Its legal adviser
WongPartnership told the court that talks
with two parties were at an advanced stage
but did not disclose the identities of the
potential investors, local media reported.
This appears to have been narrowed from
a list of eight candidates mentioned in a
Hyflux affidavit that was released yesterday.
The affidavit also noted that it had taken
time to set up the divestment process of
Tuaspring integrated water and power
project in accordance with an agreement with
Malayan Banking. Maybank, the sole bank
which funded the project with a S$720m
secured loan, had agreed in July not to take
any action on the loan to give Hyflux three
months to work on the sale. The deadline is
on October 15.
Hyflux said in a clarification last Friday
there were eight interested bidders for the
project in July. This was narrowed down to
two pre-qualified parties, of which one putin a bid for Tuaspring. The company did
not identify the bidder but local press had
reported that SembCorp Industries put in a
bid below the project’s book value of around
S$1.3bn.
Analysts suggested that Maybank could
extend the deadline to give Hyflux time to
seek approval to allow foreign investors to
bid for the project, but other bank creditors
might not be as patient.
Local press reported that High Court
Justice Aedit Abdullah told Hyflux last
Monday that it would have to show more
concrete progress in its restructuring plans
by December if it needed to extend the
moratorium.
The next status update to the High Court is
in the week of November 19 while Hyflux will
also need to provide an interim update on its
reorganization on October 31 at a hearing on
an application made by certain creditors.
KIT YIN BOEY