On January 11, Madrid, Spain-headquartered stainless steel producer Acerinox successfully closed a syndicated credit facility in the United States for an amount of $482 million, as announced in a company statement.
The facility was syndicated by US arrangers BB&T Capital Markets together with JP Morgan Chase Bank, N.A., Wells Fargo Bank, N.A., and Fifth Third Bank. In total 10 American banks participated in the transaction: BB&T, JP Morgan Chase Bank, N.A., Wells Fargo Bank, N.A., Fifth Third Bank, Regions Bank, US Bank National Association, BMO Harris Bank, N.A., The Huntington National Bank, PNC Bank National Association and The Bank of Kentucky Inc.
80 percent of the amount will be used for a term loan for Acerinox S.A., while 20 percent will be used for a revolving credit facility for the 100 percent-owned US subsidiary of Acerinox, North American Stainless Inc. (NAS). The final maturity date of the operation is February 2017.
With this facility Acerinox targets the dual objective of reducing its exposure to European banks, while also extending its debt maturities, together with reducing its average cost of financing and reinforcing its financial position.