The loan is split into three portions: tranche A is a 364 day revolver denominated in dollars, tranche B is a one year term loan solely denominated in renminbi, and tranche C is a three year dollar term loan.
How the deal will be split between the three portions will be determined after syndication and will depend on commitments, say bankers. When signing up for dollar tranches, banks can commit to portion A and/or portion C.
For tranche A, mandated lead arrangers committing $50m or more earn 35bp in fees for an all-in of 125bp, lead arrangers committing $30m-$49m earn 32.5bp and an all-in of 122.5bp, while arrangers committing $10m-$29m earn 30bp fees for an all-in of 120bp.
This is via a base margin of 90bp over dollar Libor.
Those committing to tranche C, which is priced at 130bp over Libor, have options to commit across the same three ticket levels. This will net them fees of 120bp, 115bp and 110bp for the MLA, lead arranger and arranger titles, respectively, leading to all-ins of 170bp, 168.3bp and 166.7bp.
Banks eyeing the offshore renminbi (CNH) portion also have three options. MLAs committing the equivalent of $30m net fees of 20bp for an all-in of 150bp, lead arrangers committing $20m-$29m earn 17.5bp for 147.5bp all-in, while arrangers committing $10m-$19m earn 15bp and an all-in of 145bp.
This is via a margin of 130bp over CNH Hibor.
This is not the borrower's first CNH loan. Last year it became the first commodities trader to feature a syndicated offshore renminbi tranche with a margin based on CNH Hibor.
For the latest fundraising, bank presentations will be held in Singapore on July 30 and in Taipei on August 1. One-on-one meetings are scheduled to be held in Hong Kong on July 31. Lenders have until August 29 to submit commitments, with the proceeds to go towards refinancing existing debt as well as for general corporate purposes.
Australia and New Zealand Bank, DBS, Industrial and Commercial Bank of China, Standard Chartered and United Overseas Bank are the active bookrunners and mandated lead arrangers for the dollar facility, and are joined by Oversea-Chinese Banking Corp and Sumitomo Mitsui Banking Corp also as original MLABs.
ICBC and CTBC Financial Holding are the active bookrunners on the CNH facility, while Westpac has come in as an original MLA ahead of syndication.
The loan is being borrowed via two entities: Trafigura Beheer and Trafigura Pte.
Amsterdam-based Trafigura’s previous loan also featured multiple tranches and currencies. The deal drew a strong response from the market, receiving 38 lenders in all, including 13 first time lenders to the company.