Last Updated February 08, 2008
The Latin American industrial conglomerate Votorantim has closed syndication of a US$1.3bn multi-tranche senior credit facility via joint bookrunners WestLB, BBVA, Citi, and Soci&eaute;té Générale Despite tough market conditions, the facility still managed to achieve an oversubscription with a total of 17 international financial institutions participating. For some of the banks, it marked the first time they have taken part in a syndicated facility for Votorantim.
The structure of deal features a five-year US$500mn senior secured export-backed facility, a seven-year US$500mn senior export-backed facility and a three-year US$3mn unsecured working capital tranche. The proceeds of the facility are being used to extend current debt maturities and fund working capital requirements.
Joining the facility as a senior mandated lead arranger and admin agent is Bank of Tokyo-Mitsubishi UFJ. BayernLB, BNP Paribas, Fortis Bank, Mizuho, Rabobank and Standard Chartered have also joined as mandated lead arrangers.
Arrangers are Lloyds TSB and Scotia Bank with Intesa participating as co-arranger. Managers are DZ Bank, JPMorgan and Natixis.
Hughes Hubbard & Reed acted as counsel to the lenders and White & Case provided legal advice to Votorantim. The facility was closed with the group's offshore export vehicle, Votorantrade and the group's Brazilian holding company Votorantim Participaoes acting as guarantors.
Votorantim is one of the largest private industrial groups in Latin America and is active in a range of sectors, such as metals and mining, cement, and pulp and paper, chemicals and agri-business.
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