The financing arm of steel trader Stemcor has brought in a two-year £115mn (US$188mn) borrowing base facility from four commercial banks.
Stemcor Trade Finance signed the revolving loan with Barclays, DBS, Natixis and Société Générale.
Michael Broom, director for group treasury and risk at Stemcor Trade Finance, tells GTR that the loan will be used for working capital.
“It’s a borrowing base for the UK distribution stockholding business,” says Broom.
Broom would not disclose the pricing paid.
The loan comes soon after Stemcor posted strong H1 2011 results with an increase in turnover of 31%.
“The underlying structure was complex because it’s a borrowing base spread over a number of Stemcor entities to support a number of different Stemcor entities, all UK-based,” Broom says.
“But in terms of getting the financing, I consider the loan well structured and the bank appetite strong.”