Minera Mexico gets $600 million syndicated loan

Pittsburgh, Oct. 27 - Grupo Mexico subsidiary Minera Mexico SA de CV will get a $600 million syndicated medium-term loan bank facility, according to a company news release.

Banamex/Citigroup is the lead bank on the loan. Citigroup, Scotiabank, Bank of America, BNP Paribas and Calyon are the lead arrangers. Royal Bank of Scotland, Bancomext and Export Development Canada are arrangers. HSBC is the co-arranger. UBS, Natexis Bank and NM Rothschild & Sons are lead managers and Societe Generale and ND Bank are managers.

The facility will be funded Friday.

The terms of the new loan reflect the significant improvement in Minera Mexico's performance and allow the company to decrease its financial cost by about $25 million per year, extend its maturities to 2009, increase its financial and operational flexibility for future growth and development and release security in the form of export collections and certain other assets, the release said.

Proceeds will be used to fully prepay the balance of Minera Mexico's $881 million of restructured debt.

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