On Thursday, April 2, steel giant ArcelorMittal said it successfully secured a further $1.2 billion of refinancing commitments during the second phase of its forward start syndication.
The credit lines from the new facilities in question effectively extend existing financing until 2012, the company stated.
Commenting on the refinancing, ArcelorMittal CFO Aditya Mittal said, "One of the priorities of our financial strategy is to extend debt maturity, which we believe is prudent given the current operating environment and provides added flexibility. This refinancing of 2010 and 2011 maturities represents another important step forward in realizing this strategy and also reflects the strong relationships we have with our banks."
The company already secured a $3.25 billion forward start agreement earlier this year via BNP Paribas, Banco Santander, Calyon, Commerzbank, HSBC, JP Morgan and Societe Generale.
Forward start agreements are becoming a popular way for companies to ensure access to liquidity in early 2009. They allow borrowers to bypass the dysfunctional European syndicated loan market by locking in loans years ahead of maturity in return for increased fees and margins.