Bankers Await Votorantim Mandate

Bankers were still awaiting a mandate decision last week from Brazil’s Grupo Votorantim on a $2.65bn dual-tranche loan facility after submitting proposals ahead of the June 9 deadline. Terms have yet to be determined, but more details about the structure have emerged. Votorantim is looking for a $1.5bn 5-year revolving credit facility and an export prepayment facility comprising 2018, 2019 and 2020 tranches for a total of $1.15bn, according to the company. The revolver will replace an existing $400m facility and the export prepayment loan will be used to prepay export prepayment agreements. Bankers expect aggressive pricing, given the success of the Vale and America Movil transactions. America Movil priced a $4bn dual-tranche deal 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 its syndicated loan in April, a $3bn 5-year revolver, priced at L+60bp.