Vale Closes Syndicated Loan

Vale on Monday closed its $3bn syndicated loan Monday with participation from over 20 banks, say market participants. “There was overwhelming interest in this loan, as it is an excellent credit, so pretty much all the big players in Brazil participated at some level,” says one syndicated loans banker. Another added that the lack of syndicated loans in the market added to the high level of demand. The new 5-year revolver is for working capital purposes. Credit Agricole, JPMorgan, Mizuho and Natixis are joint leads on the deal. Demand for MLA tickets was said to have come from 17 banks, but as tickets at this level were for $250m, some banks’ allocations were expected to have been cut back, say bankers away from the deal. General syndication closed last week, add market participants. The loan is offering a spread of 65bp over Libor, with fees of 15bp for utilization of up to 66% and 30bp for utilization above this, according to bankers with knowledge of the transaction.