CSN Denies Seeking Cash

CSN is not studying any significant capital raises at the moment, Otavio de Garcia Lazcano, CFO, tells LatinFinance. Vague rumors have recently surfaced in the loan market that the Brazilian steelmaker might be sounding out pricing on a trade-related financing of at least $100m in size. But Lazcano stresses his company is flush, having just sold a stake in iron ore complex Namisa, which left it with a $5bn cash position and zero net debt. “There is no rush to go out to the market,” says Lazcano, noting that pricing is not attractive. “Why would I go out now to pay an elevated rate?” he adds. High grade LatAm names have seen a significant increase in margins. The benchmark is Bimbo’s $1.7bn 2-tranche M&A facility, which pays 275bp for 3 years and 325bp on a 5-year. Lazcano notes that he would only consider a deal if it were a great opportunity at very attractive levels, which he concedes is unlikely at this point. The company has worked on renewing working capital lines and other short-dated and small day-to-day financings.