Co-ordinatingmandated lead arrangers and bookrunners ABN Amro and Merrill Lynch have closed syndication of the US$1.5bn acquisition bridge financing facility for the Russian mining and metals firm Mechel.
The facility is being raised for the intended acquisition of Oriel Resources, a London-based chrome and nickel mining and processing company listed on the AIM of the London Stock Exchange (LSE). It carries an initial margin over Libor of 2.6% per annum with step ups to 2.9% for the remaining 6 months.
The plan is that Mechel will refinance the loan via its planned IPO of the mining division.
The arranging banks were joined in syndication by BNP Paribas, Calyon, Goldman Sachs, Orgresbank, Rabobank International, Unicredit, RZB Group and Commerzbank at mandated lead arranger level with ICICI Bank participating at senior lead arranger and Fortis Bank entering at lead arranger. Commitments from banks were scaled back and there was no general syndication.
The borrower first arrived in the syndications market in late 2007, closing a US$2bn acquisition refinancing package, including a US$1.7bn classic pre-export facility. The transaction was arranged by seven banks; ABN Amro, BNP Paribas, Calyon, Commerzbank, Natixis, SMBC and Société Générale.
Mechel has gained control of a number of strategically important coal assets, and the company is believed to be well-positioned to build on its recent acquisitions.
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