Russian steel pipe producer TMK has mandated eight banks to lead arrange a US$1.3bn bridge financing. Mandated lead arrangers are ABN Amro, Calyon, BNP Paribas, ING, Bank of Tokyo-Mitsubishi UFJ, Barclays, Sumitomo and Natixis.
The deal is being raised in support of a joint bid with steel company Evraz for Swedish company Ipsco's North American assets.
On April 14, TMK announced it had reached a definitive agreement with Evraz Group, whereby TMK will acquire from Evraz the US companies and assets of Ipsco Tubular's business in conjunction with Evraz’s acquisition of the business from SSAB.
Under the terms of the agreement, TMK will acquire 100% of Ipsco Tubulars, and 51% of NS Group for US$1.2bn.
Evraz was in the market at the end of last year with a US$3.21bn pre-export finance. The facility was fully underwritten and funded before the end of 2007, but general syndication only closed in early April. The facility was fully subscribed, with the funds raised in syndication used to reduce the underwriter "commitments rather than increase the facility.
(Click here to read previous coverage of Evraz’s acquisition plans in GTR eNews March 14, 2008)
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