Bank Boston, HVB and WestLB Arrange USD 453 million Acquisition Facility for One of Brazil’s Largest Industrial Conglomerates, Camargo Corrêa S.A.
Bank Boston, HVB and WestLB successfully closed a US$ 453 million Standby Letter of Credit Facility (SBLC) for Brazilian Conglomerate, Camargo Corrêa S.A., to support the acquisition of the Argentinean cement company, Loma Negra C.I.A.S.A. The three institutions acted as Mandated Lead Arrangers and Bookrunners, successfully placing the facility among an international consortium of 11 banks.
The deal is another milestone in the Brazilian market. In a highly competitive environment, the three lead banks structured a non-conventional deal that provided the flexibility the client required. The purpose of the SBLC is to guarantee annual payment obligation from Camargo Corrêa to Loma Negra’s sellers.
This transaction marks the first time Camargo Corrêa issued bank debt in the international syndicated loan market and the acquisition of Loma Negra is the company’s largest investment to date.
The transaction was syndicated and closed before year-end and the following institutions committed to the financing: Mandated Lead Arrangers and Bookrunners: Bank Boston, HVB and WestLB; Mandated Lead Arrangers: Calyon and ING; Lead Arranger: BNP Paribas; Arrangers: Natexis, Societe Generale and Lead Managers: BBVA, Itau Europa and Banco Itau BBA .
WestLB teams in New York and Sao Paulo worked in a fully integrated and diligent manner to have this deal closed in an exceptionally short period of time. This deal represents the largest new-money non-trade related financing for a Brazilian corporation done in 2005 and was well received by the international bank market.
About Camargo Correa S.A.
Camargo Corrêa S.A. is one of the largest industrial conglomerates in Brazil, with consolidated gross revenues of R$ 7.5 billion in 2004. The group is comprised of approximately 16 companies focusing on construction, cement, environmental engineering, highway concession, electric energy distribution, textiles and footwear. With the acquisition of Loma Negra, Camargo Corrêa S.A. will become the fourth-largest cement producer in Latin America. This acquisition is the largest investment made by Camargo Corrêa.