COUNTRY REPORT TAIWANEQUITY CAPITAL MARKETS
› TEMASEK PRICES CELLTRION BLOCK
Ion Investments, controlled by Singapore’s
Temasek Holdings, has priced a block in
Korean protein producer CELLTRION at the
bottom of an indicative price range to
raise W895bn (US$789m), a person with
knowledge of the transaction said.
The block was upsized to 3.63m
shares from 3.39m shares and priced at
W247,000 versus the range of W247,000–
W255,000 each. The price represents a
discount of 8% to the pre-deal close of
W268,500.
Books were multiple times oversubscribed,
the person said. A mix of hedge funds and
local investors participated in the deal.
There is a 90-day lock-up on the vendor’s
residual shares in the company.
Temasek previously raised a combined
W1.07trn from a sell-down in Celltrion and
distributor Celltrion Healthcare in March
through two block trades.
The Singapore state fund held a 12.45%
stake in Celltrion prior to the latest
transaction.
Celltrion’s shares closed at W246,500
each on October 23.
Citigroup and Credit Suisse are the joint
bookrunners on the block.
TAIWAN
SYNDICATED LOANS
› PANJIT INCREASES LOANS TO US$227M
Electronics manufacturer PANJIT INTERNATIONAL
and its unit PANJIT ASIA INTERNATIONAL have
increased two five-year loans to US$227m-
equivalent from the US$191m-equivalent
target.
Panjit International is the borrower on a
NT$5bn loan with Land Bank of Taiwan as the
mandated lead arranger and bookrunner,
while Panjit Asia is the borrower on a
US$66m loan with First Commercial Bank as
the MLAB.
The NT$5bn loan can be drawn in either
NT or US dollars. The NT dollar portions
pay an interest margin of 95bp over Taibor,
with a pre-tax interest rate floor set at 1.7%,
while the margin on the US dollar portion
is 140bp over Libor. The borrower will pay
any excess interest rate beyond a 35bp
difference between TAIFX and Libor.
The US$66m loan comprises a US$35m
term loan tranche A and a US$31m
revolving credit tranche B. The margin,
which ranges from 135bp to 155bp over
Libor, is tied to the borrower’s pre-tax
net profit margin. The borrower will pay
any excess interest rate beyond a 35bp
difference between TAIFX and Libor.
Lenders were offered a top-level upfront
fee of 12bp.
Signing was on October 17.
For full allocations, see http://www.ifrasia.com.› CHIAHUI POWER BACK AFTER A DECADETaiwanese power producer CHIAHUI POWER
has sent out a request for proposals for
a NT$10bn (US$324m) 20-year project
financing, returning to the loan market a
decade after its last visit.
The mandate is expected to be awarded
soon.
Funds are to back the expansion of the
borrower’s power plant in Chiayi city.
Chiahui Power last tapped the loan
market in April 2008 with an NT$8.4bn-
equivalent three-tranche facility.
Chang Hwa Commercial Bank,
Chinatrust Commercial Bank, First
Commercial Bank, Mega International
Commercial Bank, Mizuho Bank, Shanghai
Commercial & Savings Bank, Taipei Fubon
Commercial Bank and Taiwan Cooperative
Commercial Bank were the coordinating
arrangers and bookrunners of that deal,
which comprised a NT$7.958bn 10-year
loan with an interest margin of 70bp over
the secondary CP rate, a NT$190m 10-
year guarantee facility and an US$8.5m
seven-year guarantee facility with a 50bp
guarantee fee.
Asia Cement Corp, which is part of theFar Eastern Group, owns a 59% of stake in
the borrower, while Japan-based J-Power
owns 40%.› YFY UPSIZES LOANS TO NT$10.8BNPaper maker YFY and its unit YFY PACKAGING
have increased five-year loans to NT$10.8bn
combined from a NT$9bn target after
attracting 10 banks in general syndication.
YFY is borrowing NT$7.2bn, while YFY
Packaging is taking NT$3.6bn. Bank of
Taiwan was the mandated lead arranger and
bookrunner of both deals.
The NT$7.2bn loan comprises a NT$7.2bn
revolving credit tranche A and a NT$5.04bn
tranche B. The two tranches cannot exceed
NT$7.2bn combined. Tranche A pays an
interest margin of 55bp over Taibor, with a
pre-tax interest rate floor set at 1.7%, while
tranche B offers an annual guarantee fee
of 55bp.
The NT$3.6bn loan has a NT$3.6bn
revolver tranche A and a NT$2.52bn
tranche B. The two portions cannot exceed
NT$3.6bn combined. Tranche A pays a
margin of 60bp over Taibor, with a pre-tax
interest rate floor set at 1.7%, while tranche
B offers an annual guarantee fee of 60bp.
Banks were offered top-level upfront fees
of 17bp for both deals.
Funds are to refinance two five-year loans
totalling NT$9bn completed in November- Bank of Taiwan, Chang Hwa
Commercial Bank, First Commercial Bank,
Hua Nan Commercial Bank and Taiwan
Cooperative Bank were the MLABs on those
facilities – a NT$6bn loan for YFY and a
NT$3bn loan for YFY Packaging.
The NT$6bn loan was split into a revolver
tranche A1 and an up to NT$600m term
loan tranche B1. The two tranches could
not exceed NT$6bn combined. Tranche A1
offered a margin of 63bp over the 90-day
secondary CP rate, while tranche B1 offered
65bp over the four-year the Taiwan dollar
interest rate swap (TWD IRS).
The NT$3bn facility comprised a revolver
tranche A2 and an up to NT$300m term
loan tranche B2. The two tranches could
not exceed NT$3bn combined. Tranche A2
and B2 offered margins of 68bp each over
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