Brazil's CSN signs commitment letter for up to $1.4 billion loan

About this update from Companhia Siderurgica Nacional

Brazilian steelmaker CSN BMFBOVESPA:CSNA3 said on Saturday it has signed a binding commitment letter with a group of banks for a new syndicated secured credit facility of $1.2 billion, with the potential to increase to $1.4 billion.The move is part of a broader deleveraging plan announced in January, CSN said in a securities filing, and is expected to be secured partly by assets earmarked for divestment, including the company's cement unit.Lenders include Morgan Stanley, Citigroup, Credit Agricole, HSBC, Banco XP, BNP Paribas, Banco do Brasil and Bradesco.Subsidiary CSN Inova Ventures to serve as borrower, CSN and cement unit CSN Cimentos as guarantors.Interest rate beginning at SOFR + 6% per annum; 5-year final maturity.Proceeds intended to refinance existing indebtedness and pay related fees and expenses.

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