Tenaris Confab Launches Loan

Tenaris Confab, a subsidiary of steel tube supplier Tenaris, held bank meetings in Brazil earlier this week to launch a $350m, 5-year syndicated loan. Margins are tied to a ratings grid and range between Libor+210bp and Libor+285bp. Banks will get 85bp for MLA tickets of $40m and 70bp for arranger tickets of $25m. There is a 12-month grace period, the company said in January. A New York meeting is to be held Thursday. The borrower is raising funds to finance its acquisition of 25m common shares of Usiminas, as part of a deal agreed last year in which 3 Tenaris units bought into the Brazilian steelmaker and entered its controlling group. HSBC is leading the transaction, with Bank of Tokyo heard as an MLA.