Gerdau Appoints Banks Loan

Gerdau, the largest producer of long steel in the Americas, has appointed BNP Paribas, Santander, HSBC and Citi for its $1bn 3-year club deal, according to bankers with knowledge of the transaction. The deal is expected to be composed of two tranches of $500m each. The loan is for working capital purposes, and will replace other short-term bilateral loans. The first tranche be used by its US and Canada subsidiaries, with the second tranche to be used by its other subsidiaries. Gerdau has steel mills in Canada, the US, Argentina, Brazil, Chile, Colombia, Dominican Republic, Guatemala, Mexico, Peru, Uruguay, Venezuela, Spain and India.