July 16, 2012 / 10:24 AM / 5 years ago

BASIS POINT-US$250m Bhushan Steel loan nears close

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)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below