Published October 29, 2009

Noble Group completes US$2.4b financing deal

Issue is largest US-dollar syndicated corporate loan in Asia-Pac this year

By OH BOON PING

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COMMODITIES company Noble Group has completed a US$2.4 billion three- tranche financing deal, the largest US-dollar syndicated corporate loan in the Asia-Pacific region this year.

Noble said that the issue was subscribed to US$2.4 billion, so it raised the deal size from the target size of US$1.8 billion.

The exercise attracted strong market interest worldwide.

The final syndicate comprises diverse financial institutions from 26 countries/regions on five continents.

The number of participants totals 63, making the deal one of the most widely subscribed in the Asia-Pacific.

It is also notable in that Chinese banks were major bookrunners.

For example, the Agricultural Bank of China's Singapore branch and China Development Bank Corporation's Hong Kong branch took up sizeable chunks of the deal.

Their lead role came on the heels of China Investment Corp's US$850 million purchase of a 15 per cent stake in Noble in September this year.

Bank of Tokyo-Mitsubishi UFJ, Commerzbank, DBS Bank, HSBC, ING Bank, JP Morgan, Royal Bank of Scotland, Societe Generale Corporate & Investment Banking and Standard Chartered Bank Hong Kong made up the rest of the bookrunning mandated lead arrangers.

The original Noble deal was launched on Aug 28, with three US$600 million revolving credit tranches.

Tranche A is a new 364-day new facility, while tranches B and C are one- and two-year extensions of the borrower's outstanding US$1.2 billion three-year revolver completed in 2007.

The maturities of tranche B and C for new lenders are two and three years respectively.

Tranche A is now US$645.2 million, while tranches B and C are each US$877.4 million.

The Noble deal pays top-level all-ins of 180 basis points for tranche A, 242.5 basis points for tranche B and 295 basis points for tranche C, based on current margin ranges from 135 basis points to 240 basis points over the London Interbank Offered Rate.

Chief executive Richard Elman said: 'This is the second syndicated financing deal we have completed this year and we are extremely pleased with the support evidenced for Noble in the size, scope and quality of this banking group. This represents a strong message of confidence in Noble.'

Published October 29, 2009

Swissco shareholder to sell 54.75% stake

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SWISSCO International said yesterday that controlling shareholder Yeo Holdings Private Limited (YH) plans to sell all of its 54.75 per cent stake in the company to C2O Holdings for about $96.10 million.

According to the term sheet entered between the two parties on Oct 26, the proposed price is at 89 cents a share for all the 107.98 million shares. This is a 22 per cent premium over Swissco's net tangible asset value of 73 cents based on its published financial results as at June 30, 2009.

C2O is reviewing various ways to structure the proposed acquisition, including the payment.

The deal is conditional on satisfactory due diligence findings and C2O's application to the Securities Industry Council for the waiver of mandatory offer, among other issues.

The deal, if it goes through, will be the first takeover of a mainboard company by a Catalist-listed firm.

Published October 29, 2009

Ascott Reit distribution slips 25%

By UMA SHANKARI

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ASCOTT Residence Trust (Ascott Reit) said that third- quarter unit-holders' distribution fell 25 per cent to $11.8 million from $15.9 million a year ago as it saw weaker demand for its serviced residences in Singapore and China.

Relatedlinks: Click here for Ascott Reit's news release Financial statements Presentation

Distribution per unit (DPU) was 1.92 cents for the quarter ended Sept 30, 2009, down 26 per cent from 2.61 cents in Q3 2008.

'The lower performance as compared to Q3 2008 was a result of the global economic slowdown, increased competition from new supply in Beijing and Shanghai, and the strong performance in August 2008 due to the Beijing Olympics,' said the real estate investment trust (Reit) in a statement. Revenue per available unit, or RevPAU, fell 24 per cent year-on-year to $124 in Q3 2009. The reduction in RevPAU was due to reduction in both average daily rates as well as occupancies at the group's serviced residences. Revenue for Q3 2009 fell 17 per cent to $44.4 million.

The trust's management said, however, that the challenges posed by the global economic downturn to the hospitality industry eased somewhat in Q3 2009 compared to Q2.

'Our Q3 operating performance has shown further signs of stabilisation in hospitality demand,' said Lim Jit Poh, the trust's chairman. 'While we remain cautious over the pace and extent of recovery, we are confident of the longer-term growth in the markets in which we operate.' On a sequential basis, unit-holders' distribution and DPU were 7 per cent higher than Q2's $11 million and 1.79 cents respectively.

Ascott Reit's portfolio operating performance also improved in Q3 over Q2, led by RevPAU growth in Japan, Singapore and China of 24 per cent, 15 per cent and 7 per cent respectively.

To ride on the expected upturn in demand as the economy recovers, Ascott Reit has accelerated its asset enhancement initiatives for selected properties. It will also continue to seek yield-accretive acquisitions, it said. The company's shares fell 2 cents, or 1.8 per cent, to $1.07 yesterday.