Elementia Seeks Loan Commitments

Elementia, the Mexican building supply conglomerate, is looking for commitments by October 15 on a $450m 5-year term loan. Fees for lead manager commitments of $50m are 75bp, while managers committing $25m get 50bp. The margin is based on a leverage grid, which is 350bp for 2x leverage and above and 275bp for a leverage under 2x. The loan is amortizing starting with 10% from the second year, rising by 10% each year. Citi, HSBC, Inbursa and Santander are bookrunners on the loan, which is expected to be 70% in dollars and 30% in Mexican pesos. Retail bankers away from the loan say they consider it to be well-priced for a strong company.