HONG KONG, July 16 (Basis Point) - Three to four banks are getting credit approvals to join the US$250m term loan for Bhushan Steel Ltd and syndication is expected to close by around the end of the month, according to a source familiar with the matter.
The banks -- a mixture of Indian and other Asian banks -- would join sole mandated lead arrranger and bookrunner State Bank of India on the loan.
The facility pays a margin of 350bp over Libor and comprises three tranches: an US$83m tranche A with an average life of 5.5 years, an US$83m tranche B with an average life of 6.5 years, and an US$84m tranche C with an average life of 7.5 years.
On tranche A, banks committing US$15m or more receive an all-in of 377bp via a fee of 150bp and the title of lead arranger. Banks committing US$5-14m receive an all-in of 372bp via a fee of 120bp and the title of arranger.
On tranche B, lenders committing US$10m or more receive an all-in of 388bp via a fee of 245bp and the title of lead arranger. On tranche C, lenders committing US$10m or more receive an all-in of 393bp via a fee of 320bp and the title of lead arranger.
Funds from the underwritten loan are for capital expenditure. (Reporting by Maggie Chen; Editing by Gavin Stafford)