Braskem Puts Loan to Bed

Brazilian petrochemical producer Braskem has recently closed a $250m 5-year revolver via Bank of America, Mizuho, ING, Sumitomo and RBS. The loan was tied to a ratings grid and offered 120bp out of the box. Banks receive an extra 15bp on top of the base margins if over third is drawn and 30bp for more than two-thirds. The company recently acquired the polypropylene business of Dow Chemicals in the US as well as assets in Germany for a combined consideration of $340m. In July, it also issued a $500m 30-year bond via Bank of America Merrill Lynch, HSBC and Morgan Stanley. That deal was priced at 98.479 with a 7.125% coupon to yield 7.25%, and the bonds have been trading at around 7.25% on a yield basis.