CTBC Bank, Maybank and Mizuho are the mandated lead arrangers, bookrunners and underwriters of the 3.5 year fundraising, said a banker close to the deal.
The loan will replace a HK$728m facility Samson raised in March 2015. The company was initially looking for HK$500m but decided to increase the size of that borrowing based on demand from the market.
However, this time the amount is capped at HK$570m, the banker said.
The loan is expected to go into general syndication next week. The trade will have some amortisation but the pricing will be lower than the 2015 transaction.
China Citic Bank International, CTBC, Maybank and Mizuho led the last deal, which paid a 270bp margin and had an average life of 2.95 years. The door-to-door life of that facility was also 3.5 years.
Borrower Samson Paper recorded revenues of HK$5.17bn during the year to March 31, up from HK$5bn a year ago. Its profits grew 81.5% year-on-year to HK$84m for the year ended March 31.
The firm’s gearing ratio improved to 44.1% from 47.0%, allowing the company to maintain interest costs at HK$73.205m, it said in its annual report.
Samson Paper’s cash and bank balance (including restricted bank deposit) stood at HK$597.3m as of March.