IMSA Deal To Yield Up To $4bn Loans

Ternium’s acquisition of IMSA, announced Monday, is expected to yield between $3.7bn and $4bn in long term bank loans. The acquisition of IMSA shares will cost Ternium, a unit of Techint, $1.7bn, which will be raised in the loan market. Separately some of the existing debt held by IMSA, heard at $1.5bn, and by Hylsa, which Ternium acquired in 2005 for $1.3bn via a 3-part loan, will likely be refinanced too. The disparate loans are also expected to be consolidated into a single Mexican entity farther down the line. Calyon is the global-coordinator with Citi as joint lead.