ISG receives financing for Bethlehem acquisition

ISG receives financing for Bethlehem acquisition

According to the announcement by the international investment firm, WL Ross Co. LLC., International Steel Group Inc. (ISG) received a $1 billion financing commitment to acquire the steelmaking business of the bankrupt Bethlehem Steel Corp. The loan will be coming via UBS Warburg LLC, Goldman Sachs Credit Partners L.P., and CIT Group/Business Credit Inc. ISG, which is backed by the buyout fund W.L. Ross & Co., placed its bid for this acquisition at $ 1.5 billion a couple of months ago. The outcome of such acquisition will create the biggest integrated steel producer in North America, with more than 16 million tons of annual shipments. The loan that ISG will receive consists of a $300 million A term loan and a $400 million B term loan, with maturities of two and four years, respectively. ISG will also receive a $300 million revolving credit facility to use for working capital purposes. Bethlehem Steel filed for Chapter 11 Bankruptcy protection in October 2001.