Stemcor, one of theworld's largest international trading groups in steel and related raw materials across the whole supply chain, has closed an unsecured US$700mn multicurrency revolving credit facility via mandated lead arrangers and bookrunners BNP Paribas, Fortis, ING and Soci&eaute;té Générale to refinance the company's existing US$325mn revolving credit facility dated May 18 2007 and for general corporate purposes.
The loan includes a US$550mn revolving tranche maturing in May 2009, with a 364-day extension option, and paying 125 basis points per year and a US$150mn revolving tranche maturing in May 2011, which pays 160bp per year.
The facility agreement was signed on May 13 by the arranging banks and syndication featured a strong hit rate across invited banks and a significant oversubscription which has allowed Stemcor to increase the facility to US$700mn from the launch amount of US$400mn. Although the current conditions of the market led to the dropping out of a small number of existing lenders, this was favourably offset by the inclusion of several new institutions. The total number of banks participating in the transaction is 48, with sources citing this as testament to the borrower's sound management of its relationship banks.
ABN Amro, Bank of China, Calyon, CBA, Deutsche Bank, DBS, HSBC, HSH, Nordbank, Lloyds, Natixis, SMBC and Standard Chartered participated as mandated lead arrangers; Crédit Suisse, Europe Arab Bank, LBBW, Nedbank, State Bank of India and UBS joined at arranger level; ABC, ANZ, Banque Cantonale de Genà¨ve, Bank of Ireland, Barclays, BHF, BOTM, Commerzbank, Credit Europe Bank. Gulf International Bank, ICBC, KBC, Mizuho, Rabobank, RZB, Unicredit (HVB), Zürcher Kantonalbank and Westpac were co-arrangers of the transaction and Banco Itaù Byblos Bank, Chang Hwa Commercial Bank, CIC, DZ Bank, Jordan International Bank, National Bank of Greece and the Economy Bank featured as managers.
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