COUNTRY REPORT AUSTRALIAbiggest non-major also has A$950m of
November 2019 and A$500m of June 2021
covered bonds outstanding.
Suncorp made its covered debut in May
2012 with a A$1.6bn dual-tranche 4.5-year
fixed-rate and A$500m 2.5-year floating-
rate note issue. Both notes have matured
as have the A$600m 4.0% November
2017s.
› PACCAR DEBUTS WITH A$150M MTN
PACCAR FINANCIAL, rated A+ (S&P), raised
A$150m from last Thursday’s debut MTN
offering arranged by joint lead managers
ANZ and Westpac.
The 3.0% four-year note priced at
99.981 for a yield of 3.005%, at the tight
end of asset swaps plus 85bp–90bp area
guidance.
PACCAR is an Australian specialist
finance company focusing on the financing
of trucks and trailers.› LIBERTY ADDS A$100M TO 2020SSpecialty finance group LIBERTY FINANCIAL,
rated BBB– (S&P), tapped its 5.10% June
1 2020 MTN for A$100m last Tuesday,
increasing the issue size to A$300m.
NAB and Westpac were joint lead
managers for the reopening which priced
at 100.517 for a yield of 4.78%, in line with
asset swaps plus 280bp guidance.› AOFM TO EXTEND LINKER CURVE
The AUSTRALIAN OFFICE OF FINANCIAL MANAGEMENT
has mandated Bank of America Merrill Lynch,
Citigroup, Deutsche Bank, UBS and Westpac for
a syndicated sale of new February 21 2050
Treasury Indexed bonds to be issued in the
week beginning September 17.
The new bond will extend the sovereign
index-linked curve almost 10 years beyond
the current longest issue, the A$3.55bn
1.25% August 21 2040s.
The AOFM’s previous sale of IL bonds
was in August 2017 with a A$3.0bn print of
0.75% November 21 2027s.
Australia is expected to issue aroundTop lead managers of Australian dollar-
denominated domestic bonds, inc-Kangaroo bonds,
ex-self-funded transactions, ABS, MBS
1/1/18 – 31/8/18
Amount
Name Issues A$(m) %
1 ANZ 51 8,484.8 12.2
2 NAB 50 8,449.7 12.1
3 CBA 32 7,892.0 11.3
4 UBS 23 6,704.2 9.6
5 Deutsche 31 5,798.8 8.3
6 Westpac 34 5,151.5 7.4
7 TD Sec 59 4,757.3 6.8
8 Citigroup 15 3,949.3 5.7
9 RBC Capital 43 3,434.6 4.9
10 Nomura 37 3,415.8 4.9
Total 223 69,861.1
*Market volume and including Kangaroo bonds
Proportional credit
Source: Thomson Reuters SDC Code: AJ6
Top bookrunners of Australia syndicated loans
1/1/18 – 31/8/18
Amount
Name Deals US$(m) %
1 ANZ 38 9,590.9 24.5
2 NAB 26 4,949.5 12.7
3 HSBC 15 3,109.6 8.0
4 CBA 18 2,950.4 7.5
5 Westpac 13 2,721.8 7.0
6 MUFG 13 2,359.0 6.0
7 Mizuho 11 1,987.2 5.1
8 Bank of China 4 1,301.2 3.3
9 ING 2 978.2 2.5
10 SMFG 7 913.5 2.3
Total 80 39,132.8
* Based on market of syndication and market total
Proportional credit
Source: Thomson Reuters SDC Code: S7Top bookrunners of Australian equity and
convertible offerings
1/1/18 – 31/8/18
Amount
Name Issues US$(m) %
1 UBS 16 4,616.0 21.0
2 Morgan Stanley 7 2,182.1 9.9
3 Macquarie 13 1,665.0 7.6
4 JP Morgan 9 1,638.6 7.5
5 Deutsche 4 1,572.5 7.2
6 Goldman Sachs 7 1,294.4 5.9
7 BAML 2 1,256.0 5.7
8 Citigroup 11 917.9 4.2
9 Morgans Financial 23 804.4 3.7
10 Bell Financial 41 783.3 3.6
Total 477 21,987.1
*Market volume
“Standard Exclusion not applicable”
Proportional credit
Source: Thomson Reuters SDC Code: AK1Schwartz Family seeks A$542.3m facility
Loans Borrower raising loan for refinancing acquisition facility and new moneyThe 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
borrowing, which is 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 CentralPark 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.
A site visit to the Four Points Hotel in
Sydney was held on August 23. The deadline
for responses is September 18.
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.
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