Stemcor closes US$700 million Revolving Credit Facility
Stemcor, the world’s largest independent steel trader, today announced the completion and signing of a US$700,000,000 multicurrency Revolving Credit Facility (RCF). BNP Paribas, Fortis Bank S.A./N.V., ING Bank N.V. and Societe Generae Corporate and Investment Banking were joint mandated lead arrangers and bookrunners.
The transaction received very strong support from Stemcor’s relationship banks and a number of new banks in syndication. It closed with a significant oversubscription, allowing Stemcor to increase the RCF after scale back to US$700,000,000 from the launch amount of US$400,000,000.
The RCF includes a US$550,000,000 revolving tranche maturing in May 2009 (with a 364 day extension option) and a US$150,000,000 revolving tranche maturing in May 2011. It will be used to refinance the group’s existing US$325,000,000 RCF dated 18th May 2007 and for general corporate purposes.
Michael Broom, Director of Group Treasury at Stemcor, said: “We are pleased with the positive response - particularly given the prevailing market conditions - and value the continued support of our banking partners, with whom we work closely. The oversubscription is testament to the strength of Stemcor’s underlying business, our rigorous risk management and our clear growth strategy.”