Brazilian integrated steelmaker Gerdau has provided guarantees to back its Mexican subsidiary, Gerdau Corsa, on bilateral loans with several local banks of up to $295 million, the Brazilian steelmaker said.
Additionally, Gerdau Corsa will get a $85 million bridge loan from Bank of America. All loans, including the bilateral ones, and the credit provided by Bank of America, will be used to pay debt.
Banks providing Gerdau Corsa bilateral loans include Banco Santander Mexico, Bank of America Mexico, Institucion de Banca Multiple, Banco Nacional de Mexico, Grupo Financeiro Banamex, BBVA Bancomer, Institucion de Banca Multiple and Grupo Financeiro BBVA Bancomer.