The Votorantim Group Oversubscribes its USD 1.3 billion Syndicated Multi-Tranche Facility
On February 6, 2008, the Votorantim Group (Votorantim) through Votorantrade N.V. and Votorantim Participações S.A as Guarantors, successfully closed syndication of a USD 1,300,000,000 Multi-Tranche Senior Credit Facility. Despite challenging current market conditions, the transaction benefited from a significant oversubscription through commitments provided by 17 international financial institutions. Several of these financial institutions are first time participants in syndicated credits for Votorantim.
The financing is comprised of a 5-year USD 500,000,000 Senior Secured Export Backed Facility, a 7-year USD 500,000,000 Senior Secured Export Backed Facility and a 3-year USD 300,000,000 unsecured working capital tranche. The proceeds from the facility will be used to extend current debt maturities and fund working capital needs.
The Votorantim Group is one of the largest and most successful private industrial conglomerates in Latin America with industrial net revenues of R$19.7 billion (approximately USD 9.1 billion) in 2006 and R$15.2 billion (approximately USD 7.6 billion) for the first three quarters of 2007. The industrial group has a diversified portfolio with leading market positions and low cost production in the metals & mining, cement, pulp & paper, chemicals, and agribusiness sectors.
BBVA, Citi, Societe Generale and WestLB acted as Joint Bookrunners for the facility. Hughes Hubbard & Reed LLP acted as counsel to the lenders and White & Case LLP acted as counsel to Votorantim.
Banking Consortium:
| Bookrunner: | WestLB, BBVA, Citi, Societe Generale |
| Senior MLA & Admin Agent: | Bank of Tokyo-Mitsubishi UFJ |
| MLA: | BayernLB, BNP Paribas, Fortis Bank, Mizuho, RaboBank, Standard Chartered |
| Arranger: | Lloyds Bank, Scotia Bank |
| Co-Arranger: | Intesa |
| Manager: | DZ Bank, JP Morgan, Natixis |