BASIS POINT-San Miguel mandates 5 banks for $1.3 bln term loan

Tue Mar 19, 2013 11:21pm EDT

HONG KONG, March 20 (Basis Point) - Five banks have so far joined San Miguel Corp's $1.3 billion five-year bullet term loan as mandated lead arrangers and bookrunners (MLAB), sources said.

DBS Bank and Maybank have joined, besides the previously reported ANZ, Bank of America Merrill Lynch and Standard Chartered Bank. ANZ and StanChart are coordinating.

Another bank is expected as early as Wednesday, sources said.

As reported earlier, senior syndication is scheduled to close by early April, after which general syndication will be launched.

The final MLAB group could total around seven to 10 banks, according to sources.

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 deal has an unspecified greenshoe.

San Miguel recently mandated a $650 million one-year bridge loan to Deutsche Bank and StanChart which funds a tender offer for exchangeable notes due in 2014.

The $650 million bridge has an opening margin of 165bp over Libor, stepping up to 200bp after six months, according to sources.

Sources expect $1 billion of the five-year loan to refinance a five-year bullet loan the borrower signed in August 2010, while the remainder would be for general corporate purposes.

San Miguel has businesses spanning beverages, food and packaging. Its operations outside the Philippines extend to China, Vietnam, Indonesia, Malaysia, Thailand and Australia.

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