Nemak Launches $640m Loan

Nemak, the Mexican autoparts maker owned by Grupo Alfa, has launched a $640m 5-year term loan to help pay for its acquisition of three European parts companies. The financing, which has a 3-year grace period for principal repayment, will be pay between 65bp-85bp over Libor, based on a leverage grid, according to bankers close to the deal. HSBC, Citi, BBVA and Standard Chartered have joint books and will be looking for participation from an additional four MLAs, say bankers.