Votorantim Seeking Jumbo Loan

Banco Votorantim has put out an RFP for a dual-tranche loan for around $2.7bn, according to market participants. It is heard to be looking for a $1.5bn 5-year revolver and a 7-year export pre-payment loan for around $1.2bn. The deadline for proposals is the end of next week say loan bankers, who expect the deal to be heavily oversubscribed. “This is a great company, so this will be a home run for them,” says one New York-based syndicated loans banker. Another adds that pricing is expected to be aggressive. “It is not a surprise that they are coming to the market with these longer tenors and can expect to achieve attractive pricing, given the success of the Vale and America Movil loans,’’ adds another syndicated loans banker. Bankers agree that the lack of paper in the loans market means the company could get flexible terms on the deal. America Movil priced a $4bn dual-tranche loan in April, made up of a $2bn 3.5-year tranche, priced at Libor+50bp and a $2bn EUR equivalent 5-year tranche priced at Libor+ 60bp. Vale also closed a $3bn 5-year revolver priced at Libor+ 60bp in April.