Friday 27 November 2009
Friday 6 November 2009
London Gatwick Airport is sold by BAA
BAA Gatwick press release:
London Gatwick Airport has been sold by BAA to an entity controlled by Global Infrastructure Partners for £1.51 billion.
Of the sale price, £55 million is conditional on future traffic performance and the buyer’s future capital structure. Proceeds will be used to repay part of BAA’s existing debt.
Andy Flower, managing director of London Gatwick Airport said: “Today’s announcement is a landmark day for the airport, our staff, airlines and business partners, members of the local community and of course, the 34 million passengers* who choose to fly through Gatwick each year.”
Andy added: “ We now look forward to working with Global Infrastructure Partners to maximise the potential of Gatwick.”
The sale is subject to, among other things, EU merger regulation clearance. Completion of the sale is scheduled for early December.
Link:
London Gatwick Airport has been sold by BAA to an entity controlled by Global Infrastructure Partners for £1.51 billion.
Of the sale price, £55 million is conditional on future traffic performance and the buyer’s future capital structure. Proceeds will be used to repay part of BAA’s existing debt.
Andy Flower, managing director of London Gatwick Airport said: “Today’s announcement is a landmark day for the airport, our staff, airlines and business partners, members of the local community and of course, the 34 million passengers* who choose to fly through Gatwick each year.”
Andy added: “ We now look forward to working with Global Infrastructure Partners to maximise the potential of Gatwick.”
The sale is subject to, among other things, EU merger regulation clearance. Completion of the sale is scheduled for early December.
Link:
Thursday 5 November 2009
Actis raises US$750 million for investment in Infrastructure across the emerging markets
Actis press release:
Actis, a leading private equity investor in emerging markets, today announced that it has successfully held a final close on its US$750m Actis Infrastructure 2 fund. This pan-emerging markets fund will focus principally on opportunities in power generation and transport.
Paul Fletcher, Senior Partner at Actis said, “The need to build infrastructure in emerging markets is one of the great investment themes of our time - power, roads, ports, airports and bridges – these are the means through which these countries will continue to grow and prosper.”
Actis’s presence on the ground across Africa, China, India, Latin America and South East Asia gives the fund an unrivalled presence in its target markets. The firm’s local knowledge and relationships are invaluable for sourcing investment opportunities, developing local partnerships, and managing political and regulatory risk.
The infrastructure team comprises 14 people, based in Singapore, Mumbai and London. It is led jointly by Partners Michael Till and Torbjorn Caesar. Each team member averages 10 years of infrastructure and 11 years of emerging markets experience. They have a blend of expertise in infrastructure investing, operations, project finance and project development, having completed investments in over 20 countries in the fund’s target regions.
Infrastructure is a key pillar of Actis’s investment strategy alongside private equity and real estate. This announcement follows on from news that Actis closed its US$2.9bn private equity pan-emerging markets fund, AEM3 in November last year.
Link:
Actis, a leading private equity investor in emerging markets, today announced that it has successfully held a final close on its US$750m Actis Infrastructure 2 fund. This pan-emerging markets fund will focus principally on opportunities in power generation and transport.
Paul Fletcher, Senior Partner at Actis said, “The need to build infrastructure in emerging markets is one of the great investment themes of our time - power, roads, ports, airports and bridges – these are the means through which these countries will continue to grow and prosper.”
Actis’s presence on the ground across Africa, China, India, Latin America and South East Asia gives the fund an unrivalled presence in its target markets. The firm’s local knowledge and relationships are invaluable for sourcing investment opportunities, developing local partnerships, and managing political and regulatory risk.
The infrastructure team comprises 14 people, based in Singapore, Mumbai and London. It is led jointly by Partners Michael Till and Torbjorn Caesar. Each team member averages 10 years of infrastructure and 11 years of emerging markets experience. They have a blend of expertise in infrastructure investing, operations, project finance and project development, having completed investments in over 20 countries in the fund’s target regions.
Infrastructure is a key pillar of Actis’s investment strategy alongside private equity and real estate. This announcement follows on from news that Actis closed its US$2.9bn private equity pan-emerging markets fund, AEM3 in November last year.
Link:
3i divests stake in Dockwise, generating 2.1x money multiple
3i press release:
3i, an international leader in private equity, and funds managed by 3i, today announce they have sold their 26.2% stake in Dockwise generating proceeds of $82m, making a 2.1x money multiple on its $164m investment in January 2007. 3i’s stake was purchased by Sankaty Advisors LLC, HAL Investments B.V. and Project Holland Deelnemingen B.V./Project Holland Fonds.
3i invested in Dockwise, the global market leading heavy lift transportation provider based in the Netherlands, in a $780m transaction in January 2007. Dockwise specialises in transporting some of the largest and most complex cargos for a variety of end markets, including the oil and gas industry, military, port and marine infrastructure and luxury yachts.
During our involvement with the company we worked with the management team undertaking a challenging M&A process which involved transforming the scale and scope of the business and successfully entering into new markets, thereby reinforcing Dockwise’s position as the global market leader. Between 2006 and 2008, revenues increased from $250m to $456m and EBITDA grew from $102m to $225m. Similar levels of profitability are expected in 2009.
In May 2007, Dockwise undertook a reverse merger with Sealift in a $2.0bn merger and refinancing with the enlarged business remaining listed on the Oslo OTC market. Subsequently, the business migrated its listing to the Oslo Stock Exchange in October 2007 with 3i retaining a 26% stake in the business.
The merger provided capital to undertake the transformation of 6 sealift tankers into large heavy lift vessels capable of carrying some of the largest cargos, reinforcing Dockwise's position as the global market leader. In addition, the company completed the introduction of the yacht express, the largest of the yacht carrying vessels. Since then, Dockwise has sold 2 of its smaller dock type vessels bringing today’s fleet to 20.
During the past three years Dockwise has continued to develop itself as a fully integrated oil and gas service provider. In July 2007, Dockwise acquired two small affiliated Houston-based engineering businesses, Offshore Kinematics Inc and Ocean Dynamics LLC, market leaders in ‘floatover’ engineering services, for $48m, which, alongside organic investment in the engineering capabilities of the company, fast tracked the evolution of Dockwise into an integrated transport and installation provider for offshore and onshore structures. The company now competes alongside established providers, such as Saipem and Technip.
With the increasing demands of an enlarged business and scope of offering, combined with meeting public market demands we worked with the Board to bolster the management team. The Chairman, Adri Baan, has extensive public markets experience, and the non-executive Directors have substantial industry experience: Rutger Van Slobbe of Royal P&O Nedlloyd N.V.; Pietro Tali, Chairman and CEO of Saipem SpA; Tom Ehret, the former CEO of Acergy S.A; and Danny McNease, Chairman and CEO of Rowan Companies Inc. During our investment, the management team also grew to support CEO Andre Goedee; during 2008, Martin Adler was recruited as CCO and Rob Strijland as COO, with Peter Wit recently joining as CFO.
Link:
3i, an international leader in private equity, and funds managed by 3i, today announce they have sold their 26.2% stake in Dockwise generating proceeds of $82m, making a 2.1x money multiple on its $164m investment in January 2007. 3i’s stake was purchased by Sankaty Advisors LLC, HAL Investments B.V. and Project Holland Deelnemingen B.V./Project Holland Fonds.
3i invested in Dockwise, the global market leading heavy lift transportation provider based in the Netherlands, in a $780m transaction in January 2007. Dockwise specialises in transporting some of the largest and most complex cargos for a variety of end markets, including the oil and gas industry, military, port and marine infrastructure and luxury yachts.
During our involvement with the company we worked with the management team undertaking a challenging M&A process which involved transforming the scale and scope of the business and successfully entering into new markets, thereby reinforcing Dockwise’s position as the global market leader. Between 2006 and 2008, revenues increased from $250m to $456m and EBITDA grew from $102m to $225m. Similar levels of profitability are expected in 2009.
In May 2007, Dockwise undertook a reverse merger with Sealift in a $2.0bn merger and refinancing with the enlarged business remaining listed on the Oslo OTC market. Subsequently, the business migrated its listing to the Oslo Stock Exchange in October 2007 with 3i retaining a 26% stake in the business.
The merger provided capital to undertake the transformation of 6 sealift tankers into large heavy lift vessels capable of carrying some of the largest cargos, reinforcing Dockwise's position as the global market leader. In addition, the company completed the introduction of the yacht express, the largest of the yacht carrying vessels. Since then, Dockwise has sold 2 of its smaller dock type vessels bringing today’s fleet to 20.
During the past three years Dockwise has continued to develop itself as a fully integrated oil and gas service provider. In July 2007, Dockwise acquired two small affiliated Houston-based engineering businesses, Offshore Kinematics Inc and Ocean Dynamics LLC, market leaders in ‘floatover’ engineering services, for $48m, which, alongside organic investment in the engineering capabilities of the company, fast tracked the evolution of Dockwise into an integrated transport and installation provider for offshore and onshore structures. The company now competes alongside established providers, such as Saipem and Technip.
With the increasing demands of an enlarged business and scope of offering, combined with meeting public market demands we worked with the Board to bolster the management team. The Chairman, Adri Baan, has extensive public markets experience, and the non-executive Directors have substantial industry experience: Rutger Van Slobbe of Royal P&O Nedlloyd N.V.; Pietro Tali, Chairman and CEO of Saipem SpA; Tom Ehret, the former CEO of Acergy S.A; and Danny McNease, Chairman and CEO of Rowan Companies Inc. During our investment, the management team also grew to support CEO Andre Goedee; during 2008, Martin Adler was recruited as CCO and Rob Strijland as COO, with Peter Wit recently joining as CFO.
Link:
EQT V acquires Eurocom and CableTel - Bulgaria's tow leading cable TV operators
EQT press release:
• EQT V acquires 100% of Eurocom from Warburg Pincus
• EQT V acquires 70% of CableTel from Gene Phillips
• CableTel’s other shareholder Ron Finley will remain minority shareholder by rolling over his 30% shareholding in CableTel into the merged company and investing further equity
• Eurocom and CableTel merge to form Bulgaria’s largest cable TV operator
• Merged company plans network investments and new products in digital TV, broadband and telephony
The total enterprise value of the two transactions amounts to more than EUR 200 million, which sets the deal among the most significant transactions in the sector for 2009.
EQT V, a leading European private equity fund, has agreed to acquire Bulgaria’s two leading cable TV operators, Eurocom and CableTel. EQT V intends to merge the two entities, invest into the new company together with CableTel’s current shareholder Ron Finley and create a major player in the Bulgarian digital TV and broadband markets.
“We see great potential in the Bulgarian market as both digital TV and broadband are gaining ground fast. With our strong experience in the industry, we believe that by working together with the new company and its management we can drive both growth and technical innovation in the sector which today is fragmented”, says Piotr Czapski, Partner at EQT Partners, advisor to EQT V.
EQT has a strong track record of fostering growth and value creation in the more than 70 companies that it has invested in over the last 14 years. EQT has previously developed Swedish cable TV operators StjärnTV and Com Hem into leading local providers of digital TV, broadband and telephony – so called triple play. Currently, EQT owns a leading German cable TV operator Kabel BW which has recorded significant growth and successfully developed the triple play concept in Germany.
EQT V is acquiring 100% of the shares in Eurocom from US-based private equity house Warburg Pincus. At the same time, EQT V acquires 70% of the shares in CableTel from Gene Phillips. CableTel’s other shareholder Ron Finley will remain minority shareholder by rolling over his 30% shareholding in CableTel into the merged company and investing further equity.
The merged company will be the clear market leader in both Bulgaria and Macedonia with annual revenues of approximately EUR 70 million and some 0.5 million households connected to the network.
The Bulgarian cable TV market is fragmented and digital TV and broadband penetration rates are lower than in the European Union as a whole. EQT V intends, together with the new company’s management and other shareholders, to accelerate the move into digital TV, broadband and telephony services by continuously investing into and offering a broad range of new and competitive services in combination with superior customer service.
“To drive this development of both the merged company and the market as a whole investment is needed in the networks and the operations. With the support and financial backing from EQT V and their strong experience in the industry we will be extremely well positioned to not only benefit from the development but also being a driving force. For the customers of Eurocom and CableTel this means new and attractive services at very competitive prices and first-class customer care,” says Istvan Polony, CEO of Eurocom who will also become CEO of the combined company.
For at least two months after the merger announcement the two companies Eurocom and CableTel will continue operating as separate market entities and the services they offer now will be provided throughout this period. The operational integration of the two companies and the impact on customers in terms of new products and services will be announced separately.
A merger between the two companies with one majority shareholder has been approved by the Bulgarian competition authorities.
ING Bank acted as financial advisor to EQT V in these transactions.
The transactions mark EQT V’s first and second investment in Central and Eastern Europe. Central and Eastern Europe is an important market for EQT and is covered by an advisory office opened in Warsaw, Poland, in 2008.
“While the ongoing global recession has slowed the activity in the whole private equity sector we continue to see very interesting and attractive opportunities in the Central and Eastern European economies. These investments are expected to be followed by further investments over the coming years”, continues Piotr Czapski.
Link:
• EQT V acquires 100% of Eurocom from Warburg Pincus
• EQT V acquires 70% of CableTel from Gene Phillips
• CableTel’s other shareholder Ron Finley will remain minority shareholder by rolling over his 30% shareholding in CableTel into the merged company and investing further equity
• Eurocom and CableTel merge to form Bulgaria’s largest cable TV operator
• Merged company plans network investments and new products in digital TV, broadband and telephony
The total enterprise value of the two transactions amounts to more than EUR 200 million, which sets the deal among the most significant transactions in the sector for 2009.
EQT V, a leading European private equity fund, has agreed to acquire Bulgaria’s two leading cable TV operators, Eurocom and CableTel. EQT V intends to merge the two entities, invest into the new company together with CableTel’s current shareholder Ron Finley and create a major player in the Bulgarian digital TV and broadband markets.
“We see great potential in the Bulgarian market as both digital TV and broadband are gaining ground fast. With our strong experience in the industry, we believe that by working together with the new company and its management we can drive both growth and technical innovation in the sector which today is fragmented”, says Piotr Czapski, Partner at EQT Partners, advisor to EQT V.
EQT has a strong track record of fostering growth and value creation in the more than 70 companies that it has invested in over the last 14 years. EQT has previously developed Swedish cable TV operators StjärnTV and Com Hem into leading local providers of digital TV, broadband and telephony – so called triple play. Currently, EQT owns a leading German cable TV operator Kabel BW which has recorded significant growth and successfully developed the triple play concept in Germany.
EQT V is acquiring 100% of the shares in Eurocom from US-based private equity house Warburg Pincus. At the same time, EQT V acquires 70% of the shares in CableTel from Gene Phillips. CableTel’s other shareholder Ron Finley will remain minority shareholder by rolling over his 30% shareholding in CableTel into the merged company and investing further equity.
The merged company will be the clear market leader in both Bulgaria and Macedonia with annual revenues of approximately EUR 70 million and some 0.5 million households connected to the network.
The Bulgarian cable TV market is fragmented and digital TV and broadband penetration rates are lower than in the European Union as a whole. EQT V intends, together with the new company’s management and other shareholders, to accelerate the move into digital TV, broadband and telephony services by continuously investing into and offering a broad range of new and competitive services in combination with superior customer service.
“To drive this development of both the merged company and the market as a whole investment is needed in the networks and the operations. With the support and financial backing from EQT V and their strong experience in the industry we will be extremely well positioned to not only benefit from the development but also being a driving force. For the customers of Eurocom and CableTel this means new and attractive services at very competitive prices and first-class customer care,” says Istvan Polony, CEO of Eurocom who will also become CEO of the combined company.
For at least two months after the merger announcement the two companies Eurocom and CableTel will continue operating as separate market entities and the services they offer now will be provided throughout this period. The operational integration of the two companies and the impact on customers in terms of new products and services will be announced separately.
A merger between the two companies with one majority shareholder has been approved by the Bulgarian competition authorities.
ING Bank acted as financial advisor to EQT V in these transactions.
The transactions mark EQT V’s first and second investment in Central and Eastern Europe. Central and Eastern Europe is an important market for EQT and is covered by an advisory office opened in Warsaw, Poland, in 2008.
“While the ongoing global recession has slowed the activity in the whole private equity sector we continue to see very interesting and attractive opportunities in the Central and Eastern European economies. These investments are expected to be followed by further investments over the coming years”, continues Piotr Czapski.
Link:
CITI INFRASTRUCTURE INVESTORS CLOSES AGREEMENT WITH SPANISH SAVING BANKS AS INVESTORS IN ITINERE
Citi Infrastructure press release:
Madrid, Spain – Citi Infrastructure Investors (CII), a Citigroup affiliate, today announced that Citi Infrastructure Partners L.P. (CIP), an investment fund managed by CII, and Pear Acquisition Corporation S.L.U., CIP's special purpose vehicle which acquired a controlling stake in the Spanish toll road operator Itínere Infraestructuras S.A. (Itínere), have entered into a shareholders' agreement with Sacyr Vallehermoso S.A. (SyV) and the Spanish savings banks Bilbao Bizkaia Kutxa (BBK), Caixanova, Caixa Galicia and Cajastur governing the acquisition by the aforementioned savings banks of their stakes in Itínere and the relationships among the shareholders.
Collectively, Caixanova, Caixa Galicia and Cajastur will invest EUR500 million in Itínere, which will correspondingly reduce SyV’s stake in the company. BBK and SyV will remain as shareholders, along with a small percentage of privately held shares. The Spanish savings bank shareholders are domiciled in the north of Spain, in the regions where the toll road assets acquired by CIP are located. As such, these investors bring valuable local knowledge to the company.
Additionally, It ínere is on track to merge with its acquisition parties by the end of September 2009. To this end, the governing bodies of Itínere, Pear Acquisition Corporation S.L.U., SyV Participaciones II (the company belonging to SyV which holds the shares owned by SyV in Itínere) and Avasacyr S.L.U. (a wholly owned subsidiary of Itínere) have signed a plan of merger for the merger of Itínere with Pear Acquisition Corporation S.L.U., SyV Participaciones II and Avasacyr S.L.U.
Link:
Madrid, Spain – Citi Infrastructure Investors (CII), a Citigroup affiliate, today announced that Citi Infrastructure Partners L.P. (CIP), an investment fund managed by CII, and Pear Acquisition Corporation S.L.U., CIP's special purpose vehicle which acquired a controlling stake in the Spanish toll road operator Itínere Infraestructuras S.A. (Itínere), have entered into a shareholders' agreement with Sacyr Vallehermoso S.A. (SyV) and the Spanish savings banks Bilbao Bizkaia Kutxa (BBK), Caixanova, Caixa Galicia and Cajastur governing the acquisition by the aforementioned savings banks of their stakes in Itínere and the relationships among the shareholders.
Collectively, Caixanova, Caixa Galicia and Cajastur will invest EUR500 million in Itínere, which will correspondingly reduce SyV’s stake in the company. BBK and SyV will remain as shareholders, along with a small percentage of privately held shares. The Spanish savings bank shareholders are domiciled in the north of Spain, in the regions where the toll road assets acquired by CIP are located. As such, these investors bring valuable local knowledge to the company.
Additionally, It ínere is on track to merge with its acquisition parties by the end of September 2009. To this end, the governing bodies of Itínere, Pear Acquisition Corporation S.L.U., SyV Participaciones II (the company belonging to SyV which holds the shares owned by SyV in Itínere) and Avasacyr S.L.U. (a wholly owned subsidiary of Itínere) have signed a plan of merger for the merger of Itínere with Pear Acquisition Corporation S.L.U., SyV Participaciones II and Avasacyr S.L.U.
Link:
DEALTALK-Las Vegas Sands loan faces bumps, may pressure IPO
* Sands seen struggling to raise $2 bln in loans by yr-end
* May further affect HK IPO valuations - analysts, brokers
* Risks to gambling sector still challenging - banker (For more Reuters DEALTALKs, click [DEALTALK/])
By Sui-Lee Wee and Stephen Aldred
HONG KONG(Reuters) - Las Vegas Sands Corp may struggle to secure up to $2 billion in financing for mothballed projects and dent already-lowered valuations for the planned Hong Kong initial public offering of its Macau operations, bankers and analysts said.
The world's most valuable casino operator needs the money to complete its two suspended projects in Macau, which have become major embarrassments and eyesores as the company prepares to raise up to $2.5 billion in a public offering. .
Sands Chief Executive Sheldon Adelson told Reuters in an interview last week that the company is in the process of securing financing to complete the two projects, which include mid-tier hotel brands, by 2011.
A source familiar with the situation said Friday the sites are key to Sands' goal of creating the critical mass needed to make Macau a major destination market.
The source said Sands would prefer to secure the project financing ahead of the IPO but is not depending on it.
"This is certainly a more challenging IPO and there's a lot of risks to it," said Susquehanna analyst Robert LaFleur, comparing the Sands IPO with a similar one for the less debt-laden Wynn Macau Ltd earlier this month. "They're already partially pregnant with their Macau projects."
Highly leveraged Sands has come close to violating loan covenants and suspended work on several projects as it navigates the credit crisis that began last year. Chairman and founder Sheldon Adelson has injected $1 billion of his own money into the casino operator.
Sands' high debt load means its stock needs to be valued more cheaply than Wynn Macau to attract investors.
"IPOs are still in demand in a buoyant market but one has to offer its shares at an even more attractive price to lure investment interest if its fundamentals are not so sound," said Ben Kwong, chief operating officer of KGI Asia.
The buzz among bankers is that the loan could fail to materialize before year-end and mark another setback for the company as it prepares to pass around the IPO hat.
Sands is tapping the loan market almost one year after canceling a $5.25 billion financing during the global crisis.
Its timing for the new loans is hardly ideal, however, as banks will be closing their books ahead of year-end and are reluctant to lend out in such huge sums, bankers said.
"The banks are taking a wait-and-see approach," said a senior banker from a Chinese bank. "Many are waiting to see which banks will indicate that they will take a substantial ticket."
ASIA ASSETS
Sands wants the money as the company, with long-term debt of about $10.6 billion, tries to wow the world with its gaming assets in Asia -- a huge growth market where it has several projects in Macau and one in Singapore.
The company has shored up its balance sheet through strict cost cuts, $600 million of exchangeable bonds and amendments to its $3.3 billion Macau credit facility.
However, nervousness about Macau's highly regulated gambling market and fickleness from China -- which supplies two-thirds of the enclave's gambling visitors --- are keeping potential lenders on the sidelines, bankers say.
That fickleness has been apparent in recent months, with China loosening visa restrictions for its citizens to travel to Macau, only to retighten them this month.
"Worrying signals on people crossing the border are not good for loan syndications," said one banker. "From a bank point of view, they undermine some basics."
Citigroup, Goldman Sachs Group Inc, Macau's Banco Nacional Ultramarino and Singapore's DBS Group Holdings Ltd would be the likely financiers of the loan for Sands, whose main Macau property is the Venetian, sources said.
Goldman had approached 25-30 banks, but only 15 attended the bank meeting in Macau last week, sources told Basis Point.
"Venetian Macau is just too big for its relationship banks to miss," said a loans banker, who is looking at the deal. "After all, it's the biggest project in Macau for the next few years to come, and you don't want to ruin the relationship with them."
* May further affect HK IPO valuations - analysts, brokers
* Risks to gambling sector still challenging - banker (For more Reuters DEALTALKs, click [DEALTALK/])
By Sui-Lee Wee and Stephen Aldred
HONG KONG(Reuters) - Las Vegas Sands Corp may struggle to secure up to $2 billion in financing for mothballed projects and dent already-lowered valuations for the planned Hong Kong initial public offering of its Macau operations, bankers and analysts said.
The world's most valuable casino operator needs the money to complete its two suspended projects in Macau, which have become major embarrassments and eyesores as the company prepares to raise up to $2.5 billion in a public offering. .
Sands Chief Executive Sheldon Adelson told Reuters in an interview last week that the company is in the process of securing financing to complete the two projects, which include mid-tier hotel brands, by 2011.
A source familiar with the situation said Friday the sites are key to Sands' goal of creating the critical mass needed to make Macau a major destination market.
The source said Sands would prefer to secure the project financing ahead of the IPO but is not depending on it.
"This is certainly a more challenging IPO and there's a lot of risks to it," said Susquehanna analyst Robert LaFleur, comparing the Sands IPO with a similar one for the less debt-laden Wynn Macau Ltd earlier this month. "They're already partially pregnant with their Macau projects."
Highly leveraged Sands has come close to violating loan covenants and suspended work on several projects as it navigates the credit crisis that began last year. Chairman and founder Sheldon Adelson has injected $1 billion of his own money into the casino operator.
Sands' high debt load means its stock needs to be valued more cheaply than Wynn Macau to attract investors.
"IPOs are still in demand in a buoyant market but one has to offer its shares at an even more attractive price to lure investment interest if its fundamentals are not so sound," said Ben Kwong, chief operating officer of KGI Asia.
The buzz among bankers is that the loan could fail to materialize before year-end and mark another setback for the company as it prepares to pass around the IPO hat.
Sands is tapping the loan market almost one year after canceling a $5.25 billion financing during the global crisis.
Its timing for the new loans is hardly ideal, however, as banks will be closing their books ahead of year-end and are reluctant to lend out in such huge sums, bankers said.
"The banks are taking a wait-and-see approach," said a senior banker from a Chinese bank. "Many are waiting to see which banks will indicate that they will take a substantial ticket."
ASIA ASSETS
Sands wants the money as the company, with long-term debt of about $10.6 billion, tries to wow the world with its gaming assets in Asia -- a huge growth market where it has several projects in Macau and one in Singapore.
The company has shored up its balance sheet through strict cost cuts, $600 million of exchangeable bonds and amendments to its $3.3 billion Macau credit facility.
However, nervousness about Macau's highly regulated gambling market and fickleness from China -- which supplies two-thirds of the enclave's gambling visitors --- are keeping potential lenders on the sidelines, bankers say.
That fickleness has been apparent in recent months, with China loosening visa restrictions for its citizens to travel to Macau, only to retighten them this month.
"Worrying signals on people crossing the border are not good for loan syndications," said one banker. "From a bank point of view, they undermine some basics."
Citigroup, Goldman Sachs Group Inc, Macau's Banco Nacional Ultramarino and Singapore's DBS Group Holdings Ltd would be the likely financiers of the loan for Sands, whose main Macau property is the Venetian, sources said.
Goldman had approached 25-30 banks, but only 15 attended the bank meeting in Macau last week, sources told Basis Point.
"Venetian Macau is just too big for its relationship banks to miss," said a loans banker, who is looking at the deal. "After all, it's the biggest project in Macau for the next few years to come, and you don't want to ruin the relationship with them."
EBRD continues support for Ukrainian infrastructure
EBRD Press release:
The EBRD is continuing to support the transport infrastructure in Ukraine with a $27 million loan facility to finance the development of a logistics service centre in the area of the Black Sea Port of Odessa.
EBRD funding will contribute to improvements in the efficiency of container handling operations and promote the development of the inland infrastructure in the Port of Odessa. The financing will be provided to Euroterminal LLC, a company set up specifically to implement the project.
Based on a “dry port” concept for on-shore processing of containers, this will be the first such logistics centre in Ukraine directly integrated with container terminal facilities in the port via a recently completed flyover. The centre will consist of a container truck parking lot, a customs terminal and a container storage facility. The project will also help to regenerate the city’s industrial zone and to remove heavy container truck traffic from the city streets.
Sue Barrett, the EBRD’s Director for Transport, said: “The Bank is happy to support this important project, which will be the first of its kind in Ukraine and represents much needed private sector involvement in port infrastructure development in the country. More private initiatives in this sector will bring much needed expertise, capital and efficiency essential for the modernisation of Ukrainian transport networks”.
Ludmila Varavva, Euroterminal’s Director, said:”Despite today’s volatile market conditions, our company has taken the initiative to develop this ambitious investment project to provide better quality and more efficient services to shippers and cargo owners and prepare to meet future increase in cargo handling in the Port of Odessa. This is a strong signal for global business, pointing to an attractive investment climate in Ukraine and the Odessa region. It became possible due to concerted efforts of the Odessa Port Authorities, City of Odessa, Euroterminal LLC and the EBRD. It is a great honour for Euroterminal to have such partners. The EBRD’s support is clear evidence of our drive, determination and transparency”.
With this project, the total commitments of the EBRD to support the development of the Ukrainian transport sector will exceed €700 million. The European Bank for Reconstruction and Development is the biggest financial investor in Ukraine. As of 1 October 2009, it had committed €4.5 billion through 189 projects.
Link:
The EBRD is continuing to support the transport infrastructure in Ukraine with a $27 million loan facility to finance the development of a logistics service centre in the area of the Black Sea Port of Odessa.
EBRD funding will contribute to improvements in the efficiency of container handling operations and promote the development of the inland infrastructure in the Port of Odessa. The financing will be provided to Euroterminal LLC, a company set up specifically to implement the project.
Based on a “dry port” concept for on-shore processing of containers, this will be the first such logistics centre in Ukraine directly integrated with container terminal facilities in the port via a recently completed flyover. The centre will consist of a container truck parking lot, a customs terminal and a container storage facility. The project will also help to regenerate the city’s industrial zone and to remove heavy container truck traffic from the city streets.
Sue Barrett, the EBRD’s Director for Transport, said: “The Bank is happy to support this important project, which will be the first of its kind in Ukraine and represents much needed private sector involvement in port infrastructure development in the country. More private initiatives in this sector will bring much needed expertise, capital and efficiency essential for the modernisation of Ukrainian transport networks”.
Ludmila Varavva, Euroterminal’s Director, said:”Despite today’s volatile market conditions, our company has taken the initiative to develop this ambitious investment project to provide better quality and more efficient services to shippers and cargo owners and prepare to meet future increase in cargo handling in the Port of Odessa. This is a strong signal for global business, pointing to an attractive investment climate in Ukraine and the Odessa region. It became possible due to concerted efforts of the Odessa Port Authorities, City of Odessa, Euroterminal LLC and the EBRD. It is a great honour for Euroterminal to have such partners. The EBRD’s support is clear evidence of our drive, determination and transparency”.
With this project, the total commitments of the EBRD to support the development of the Ukrainian transport sector will exceed €700 million. The European Bank for Reconstruction and Development is the biggest financial investor in Ukraine. As of 1 October 2009, it had committed €4.5 billion through 189 projects.
Link:
Subscribe to:
Posts (Atom)