Sydney, 8 September 2008 - Lion Nathan today announced that it has entered into a syndicated loan facility arranged by Mizuho Corporate Bank. This facility allows Lion Nathan to access JPY 30 billion, which equates to approximately AUD 340 million.
The term of the debt will be for five years from drawdown and, when swapped into Australian dollars, is priced at bank bill swap rate (BBSW) plus 75 basis points excluding arrangement fees.
Commenting on the funding, Lion Nathan’s Chief Financial Officer, Jamie Tomlinson, said: “We reviewed funding options in the US, Europe, Asia, New Zealand and Australia but the Japanese debt market was found to be the most attractive option due to its limited exposure to sub-prime issues, the level of liquidity available, and the fact that our business was very attractive to these lenders.”
“The funds have been secured at a very competitive rate and with covenants consistent with our current facilities. The deal attracted considerable interest and was significantly over-subscribed, demonstrating that Lion Nathan remains a highly regarded borrower due to its strong cash flow and disciplined capital management.”
“The funds can be drawn down at anytime over the next six months allowing us to replace a number of existing funding arrangements which mature during this period and will be used to support the group’s ongoing funding requirements”, Mr Tomlinson said.
The syndicated loan was arranged by Mizuho Corporate Bank, a core member of Japan’s second largest banking and finance group. The Mizuho Financial Group was created in September 2000 through the establishment of a holding company of its three predecessor banks; Industrial Bank of Japan (IBJ), Fuji Bank and Dai-Ichi Kangyo Bank (DKB). Mizuho Corporate bank was the pioneer of Japanese cross-border syndicated loans and holds the market-leading share.
“This funding marks a return to the Japanese debt market for Lion Nathan after 20 years, having previously borrowed from a syndicate of Japanese banks including Dai-Ichi Kangyo Bank”, Mr Tomlinson said.
There are 13 investors in the syndicate of which no single investor holds more than 12% of the funds raised. The participants include Japanese city banks, trust banks and regional banks. Mizuho Corporate Bank handled the book-running, and the documentation process.