Brazilian stainless steelmaker Acesita has issued US$125mn in three-year notes backed by export receivables. The funds will be used to roll over and extend out debt. In 2003, the Belo Horizonte-based company raised US$310mn in long-term financing and has 67% of its debt classed as long-term.
At the end of September, Acesita’s debt stood at R1.49bn (US$514mn). “I can guarantee that our debt remains very manageable at 2.9 times cashflow,” Gilberto Audelino Correa, head of investor relations, has said.
In the first nine months of 2003, cashflow as measured by Ebitda totaled R359mn.
“We completed the goal of our debt restructuring for the year,” said Correa.
The steelmaker does not envisage any large investments in 2004 and will continue to focus on reducing debt and the average cost of raising debt. Sales are forecast to increase at double the rate of GDP growth, he said.
Acesita, controlled by European steel group Arcelor and local pension funds, has installed capacity of 850,000t/y of crude steel and is Latin America’s sole integrated stainless steelmaker.