Dubai Drydocks World has mandated eight banks for a $2.2 billion (Dh8bn) two-tranche financing to take out its $1.725bn one-year bridging loan completed early this year, banking sources said.
The eight banks – BNP Paribas, DBS Bank, Emirates Bank, HSBC, ING Bank, Lloyds TSB Bank, Mashreqbank and Standard Chartered Bank – have launched a global syndication.
The deal has a $1.7bn three-year bullet loan with a margin of 170 basis points (bps) over Libor and a $500 million five-year amortising loan with a margin of 190 basis points over Libor.
The amortising loan has an average life of 4.35 years.
Banks have been invited to join at four ticket levels. The highest level, $150 million or more for the mandated lead arranger title, offers top-level all-ins of 197 bps and 210.7 bps for tranches A and B via fees of 80 bps and 90 bps, respectively.
Arrangers, for commitments of $100-149 million, get all-ins of 191.7 bps and 207.2 bps for tranches A and B via fees of 65 bps and 75 bps, respectively.
Co-arrangers, for $50-99 million, get 188.3 bps and 204.9 bps via fees of 55 bps and 65 bps. Lead managers, for $25-49 million, get 183.3 bps and 201.5 bps via fees of 40 bps and 50 bps.
The eight banks can choose to commit to either or both tranches.
Roadshows will be held in Dubai, London, Hong Kong and Singapore on Sunday, Monday, Wednesday and Thursday respectively.
The outstanding bridge in January paid a top-level all-in of 125 bps via a margin of 80 bps over Libor based on a remaining life of about nine months.
Some of the funds were used to buy a 70 per cent stake in Singaporean shipyard operation Pan-United Marine for $424m.
Dubai Drydocks World belongs to state conglomerate Dubai World, the parent of port operator DP World, which acquired British rival P&O last year, and private equity firm Istithmar, which bought a stake in StanChart in 2006.