The facility was syndicated by US arrangers BB&T Capital Markets together with JP Morgan Chase Bank, N.A., Wells Fargo Bank, N.A., and Fifth Third Bank. In total 10 American Banks participated in the transaction: BB&T, JP Morgan Chase Bank, N.A., Wells Fargo Bank, N.A., Fifth Third Bank, Regions Bank, US Bank National Association, BMO Harris Bank, N.A., The Huntington National Bank, PNC Bank National Association and The Bank of Kentucky Inc.
The operation was put in place for Acerinox S.A. and North American Stainless Inc. ("NAS"; the US subsidiary 100% owned by Acerinox, S.A.), with 80% of the amount being used for a term loan to Acerinox S.A. and 20% for a revolving credit facility for NAS. The final maturity date of the operation is February of 2017, while the term loan amortizes quarterly.
With this facility Acerinox achieves the dual objective of reducing its exposure to the European banking system while also extending its debt maturities, together with reducing its average cost of financing and reinforcing its financial position.
The liquidity of the Group for the coming years is guaranteed since the majority of its debt is long-term which allows the Group to comfortably face any adverse circumstances in the financial markets.
This operation demonstrates the confidence of American Banks in the global project of the Group and in particular in its US facility, North American Stainless, in the same way as South African and Spanish Banks have done in the past and continue to do today.