Algoma seeks $850 million credit facility

By Sara Rosenberg

New York, May 25 - Algoma Steel Inc. is currently in market with an $850 million senior secured credit facility, according to a market source.

UBS is the lead bank on the deal, which launched with a bank meeting this past Wednesday.

The facility consists of an about $450 million term loan B talked at Libor plus 300 basis points and a $400 million ABL revolver, the source said.

Of the total revolver amount, $200 million will be funded at close, the source remarked.

Ratings on the deal are expected in the mid-single Bs.

A "bunch of tickets" from investors have already come in on the deal, the source added.

Proceeds from the facility, along with $450 million of senior unsecured bonds, will be used to help fund Essar Steel Holdings Ltd.'s acquisition of the company for C$1.85 billion.

Algoma Steel is a Sault Ste. Marie, Ontario-based steel producer. Essar Steel is an India-based steel company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.