Stemcor closes Revolving Credit Facility for German operations

Stemcor Deutschland Holding GmbH has successfuly completed the signing of its first German syndicated facility, a 2-year EUR 110,000,000 Committed Revolving Credit Facility secured via a Borrowing Base. Stemcor Deutschland Holding GmbH, the Dusseldorf based subsidiary of the world’s largest independent steel trader, functions as the Group's holding company in Germany.

Werner Bodora, Head of Treasury at Stemcor Deutschland Holding GmbH, said: “This transaction consolidates the financing of Stemcor’s German based businesses and ensures a strong foundation for growth. The Facility will be used for general corporate purposes as well as for the working capital requirements of Stemcor Deutschland Holding GmbH’s subsidiary companies, namely OKS Otto Knauf GmbH, Stemcor Flachstahl GmbH, Stemcor GmbH, S&W Rohrtech GmbH and WSK Stahlhandels GmbH.”

The Facility was arranged by Commerzbank Aktiengesellschaft, HSH Nordbank AG and UniCredit Bank AG. UniCredit Luxembourg S.A. and Commerzbank Aktiengesellschaft acted as Facility Agent and Security Agent respectively. KBC Bank Deutschland AG and Landesbank Baden-Wuerttemberg participated in the transaction.

Michael Broom, Group Director of Treasury and Risk at Stemcor, said: “Trading in the Group's German businesses has been strong during the course of this year and we maintain a firm order book. This facility closely aligns our financing structure with our commercial undertakings in Germany and at the same time increases the percentage of committed facilities held by the Group, thereby improving the strength of our Balance Sheet.”