BASIS POINT-LS Cable borrowing $400 mln for acquisition

HONG KONG, July 25 (Reuters) - Korea Development Bank, Hana Bank and Kookmin Bank are providing a $400 million bridging loan for LS Cable Ltd's (006260.KS) acquisition of Nasdaq-listed wire and cable maker Superior Essex Inc SPSX.O, banking sources said.

The three mandated lead arrangers will hold the whole bridge: KDB will take $140 million, while Hana and Kookmin will each take $130 million.

The deal's documentation, currently in process, is expected to be completed by the end of July, when LS Cable's tender offer for Superior Essex closes.

The borrower is Cyprus Investments Inc, a special purpose company owned by LS Cable.

The bridge, with a three-month maturity that can be extended by up to six months, will be refinanced by the $400 million three-year term loan that KDB, Hana and Kookmin launched on July 2.

Banks have been invited to form an expanded MLA (mandated lead arranger) group for that bullet deal for an all-in of 300 basis points for commitments of $70 million or more via a margin of 245 basis points over Libor.

Three other ticket levels have been offered in general syndication: an all-in of 285 bps and the lead arranger title for commitments of $50-$69 million; 270 bps all-in and the co-arranger title for commitments of $30-49 million; and 260 bps all-in and the lead manager title for commitments of $10-29 million.

This financing also offers a commitment fee of 35 bps.

Funds will also be borrowed via Cyprus Investments.

Both sub-underwriting and general syndication are still in process and are scheduled to close on July 30. However, the closing date could be extended to mid-August.

LS Cable on June 11 confirmed it had signed an agreement to buy Superior Essex for $900 million, or $45 per share, in a move to boost its U.S. market presence and beef up its product offerings.

Macquarie Bank is LS Cable's financial adviser. (Reporting by Foster Wong; editing by Dominic Whiting) (foster.wong@thomsonreuters.com, +852 2912-6605)