Cement Maker Unveils Loan

Brazil’s InterCement held a bank meeting Tuesday in New York and is expected to hold another tomorrow in Sao Paulo to discuss a $900m loan package divided into three $300m tranches, according to people following the process. The cement maker is syndicating a 5-year amortizing tranche paying Libor+270bp out of the box and a 5-year bullet offers Libor+280bp. A 7-year tranche at Libor+350bp is heard to be already fully subscribed and not being syndicated. The tranches are tied to a ratings grid with initial prices based on the current rating of BB. On offer are a MLA tranche of $60m at 80bp, a co-arranger tranche of $40m at 60bp and a lead arranger tranche of $25m at 45bp. Commitments, which are being accepted in dollars and euros, are heard due January 10. BNP, Citi, HSBC, Itau and JPMorgan are leading the transaction, with proceeds to be used for debt refinancing.