Brazil's CSN signs commitment letter for up to $1.4 billion loan

Reuters03-22
Brazil's CSN signs commitment letter for up to $1.4 billion loan

SAO PAULO, March 21 (Reuters) - Brazilian steelmaker CSN CSNA3.SA said on Saturday it has signed a binding commitment letter with a group of banks for a new syndicated secured credit facility of $1.2 billion, with the potential to increase to $1.4 billion.

The move is part of a broader deleveraging plan announced in January, CSN said in a securities filing, and is expected to be secured partly by assets earmarked for divestment, including the company's cement unit.

  • Lenders include Morgan Stanley, Citigroup, Credit Agricole, HSBC, Banco XP, BNP Paribas, Banco do Brasil and Bradesco.

  • Subsidiary CSN Inova Ventures to serve as borrower, CSN and cement unit CSN Cimentos as guarantors.

  • Interest rate beginning at SOFR + 6% per annum; 5-year final maturity.

  • Proceeds intended to refinance existing indebtedness and pay related fees and expenses.

(Reporting by Gabriel Araujo; Editing by Nia Williams)

((Gabriel.Araujo2@thomsonreuters.com; +55 11 5047-3352;))

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