Banks line up for San Miguel’s $1.3-B, SM’s $300-M loans

MANILA, Philippines – Banks are signing up to extend term loans to the Philippines’ biggest companies: San Miguel Corp. and SM Prime Holdings Inc.

About 8 banks are joining San Miguel’s $1.3 billion syndicated 5-year bullet term loan, while 5 have signed a $300 million 5-year term loan for SM Prime, the Philippines’ biggest mall operator, Reuters said in separate reports on Tuesday, March 26.

Of the amount, San Miguel is looking to spend the $1-billion to refinance a 5-year term loan drawn in August 2010. The rest are for general corporate purposes.

Reuters said the banks participating in the San Miguel loan as mandated lead arrangers and bookrunners are Mizuho Corporate Bank, ANZ, Bank of America Merrill Lynch, Bank of Tokyo-Mitsubishi UFJ, DBS Bank, Maybank, Standard Chartered Bank and Sumitomo Mitsui Banking Corp.

One or two more banks are still processing credit approvals and may join the syndication, Reuters said, citing an anonymous source.

“Banks have been invited to join at an all-in of 266bp via a 155bp upfront fee and a margin of 235bp over Libor for underwriting commitments of $300 million or more with a targeted hold of $130 million,” the news agency noted.

For SM Prime, the 5 banks participating in the syndicated loan are ANZ, Bank of Tokyo-Mitsubishi UFJ, HSBC, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp.

The loan proceeds will be used for general corporate purposes.

SM Prime’s interest pricing is in the low 200s, Reuters said, noting that a previous $200 million 5-year loan was priced at around 195bp all-in. – Rappler.com