Stemcor closes US$1bn Revolving Credit Facilities

Stemcor, the world’s largest independent steel trader, today announced the completion and signing of US$1bn multicurrency revolving credit facilities (the “Facilities”). The Facilities comprise of:

• A USD772.5m 364-day revolving credit facility (RCF) with two 364-day extension options and
• A USD227.5m 3-year revolving credit facility

The deal was launched at the end of March with ABN AMRO Bank N.V., BNP Paribas, ING Bank N.V., The Royal Bank of Scotland plc, Société Générale Corporate & Investment Banking and Standard Chartered Bank appointed as Active Bookrunners and Mandated Lead Arrangers.

The Active Bookrunners were joined by Bank of China, Crédit Agricole Corporate and Investment Bank, Credit Europe Bank, Credit Suisse, The Development Bank of Singapore Limited, The Hongkong and Shangai Banking Corporation Limited, Garanti Bank, Natixis and Nedbank who committed to the Facility as a Mandated Lead Arranger and Bookrunner (together with the Active Bookrunners, the “Mandated Lead Arrangers and Bookrunners”) and by Commonwealth Bank of Australia and UBS who committed to the Facility as Mandated Lead Arranger and Lead Arranger..

The syndicate comprised a total of 53 lending banks and, due to significant oversubscription, the Facilities were increased from the launch amount of US$650,000,000 to US$1,000,000,000.

The 364-day RCF will be used to refinance and cancel Stemcor’s existing RCF dated 4th May 2010 and for general corporate purposes. The 3-year RCF will be used to refinance and cancel Stemcor’s existing 3-year Facility dated 13th May 2008 and 2-year Forward Start Facility dated 4th May 2010 and for general commercial purposes in the ordinary course of business.

Michael Broom, Group Director of Treasury & Risk at Stemcor, said: “Stemcor had a very strong year in 2010 and progress to date in 2011 is encouraging, despite the depressed construction sector dampening demand for steel in many regions.  We have therefore taken advantage of the oversubscription and closed at a level substantially higher than quoted at launch. We are pleased that so many of our long-standing banking partners continued to support us throughout the worst of the recession in 2008/2009 and now stand to benefit from an upturn in trading, not only in terms of lending but also ancillary services.”