Lonsum firms set loans

Lonsum firms set loans

HONG KONG (Reuter): A two-facility syndicated term loan of
US$132 million for PT PP London Sumatra Indonesia (Lonsum) and
US$65 million for its parent PT Pan London Sumatra Plantation was
launched yesterday, the arrangers said.

Arrangers and joint bookrunners are HSBC Investment Bank Asia,
Singapore branch, and Union Bank of Switzerland, Hong Kong.

The facilities will be used to refinance the borrowers'
existing syndicated loan facilities signed in November 1994 and
fund Lonsum's expansion program in Palembang, South Sumatra.

The facilities have been fully underwritten by the Hong Kong
and Shanghai Banking Corp and Union Bank of Switzerland. Prior to
general syndication, the Development Bank of Singapore and
Rabobank, Singapore branch, joined the facilities as co-arrangers
with commitments of US$20 million each.

Banks were invited to join the facilities at three levels,
with commitments divided pro rata between Facility A and Facility
B. Commitments are US$10 million or above for lead managers, $7.5
million to $9.5 million for managers and $5.0 to $7.0 million for
co-managers.