Milbank, Tweed, Hadley & McCloy LLP advised nine principal lenders in a $1.5 billion syndicated financing for Ternium Investments S.À R.L., a wholly owned subsidiary of Luxembourg-based steel concern Ternium SA (NYSE:TX), unconditionally guaranteed by Ternium de Mexico, S.A. de C.V. Ternium is the leading producer of long and flat steel products in Latin America and has operations in the United States, Mexico, Argentina, Colombia and Guatemala. The proceeds of the financing were used to fund Ternium's acquisition of CSA Siderúrgica do Atlântico Ltda., a steel slab producer with a steelmaking facility located in the state of Rio de Janeiro, Brazil, and an annual production capacity of 5 million tons of high-end steel slabs, a deep-water harbor and a 490 MW combined cycle power plant.
New York-based Capital Markets partner Carlos Albarracín led the Milbank deal team on behalf of the joint lead arrangers and joint bookrunners Citigroup Global Markets Inc., Intesa Sanpaolo S.p.A., JPMorgan Chase Bank, N.A., Natixis, Bank of Tokyo-Mitsubishi UFJ, Ltd., Bank of America, N.A., BNP Paribas, Credit Agricole Corporate and Investment Bank and HSBC Bank USA, N.A. The syndicate comprised of a total of 14 financial institutions.
Mr. Albarracín said: “Milbank is pleased to help lead another major financing for Ternium, one of Latin America’s most prominent players in steel production. This transaction reflects the caliber and sophistication of the financing opportunities we are seeing in Latin America.”
In addition to Mr. Albarracín, the Ternium financing team included Milbank associates Jaime Ramirez, Andres Osornio and Gonzalo Guitart.
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