FOR IMMEDIATE RELEASE
Deal reflects Milbank’s continued growth in major financial transactions in Mexico; financing provided by a group of 11 international banks and financial institutions
In its second large financing in Mexico this month, Milbank, Tweed, Hadley & McCloy advised four principal lenders in an $800 million syndicated financing for Ternium México S.A. de C.V., a leading steel, plastics, and aluminum processor that is the Mexican arm of Luxembourg-based steel concern Ternium SA (NYSE:TX).
New York-based partners Carlos Albarracín and Michael Bellucci led the Milbank deal team on behalf of lead arrangers Crédit Agricole CIB, HSBC Bank USA, Bank of Tokyo-Mitsubishi UFJ, and Natixis Global Asset Management. The syndicate, comprised of a total of 11 financial institutions, focused on Mexican banks or Mexican branches of international banks.
Based in San Nicolás de los Garza, near Monterrey, Ternium specializes in value-added steel products for use in construction, automotive, energy, and appliance sectors, among others. It operates production and distribution centers throughout Latin America. The company will use proceeds from the loan to finance an existing credit facility and for general corporate purposes.
Mr. Bellucci, of the firm’s Leveraged Finance group, said, “We’re pleased to help lead this major financing for Ternium, one of Latin America’s pre-eminent players in steel production and iron ore.”
Mr. Albarracín, a member of Milbank’s Global Securities practice, added, “Mexico’s industrial sector continues to show signs of strength and increased capacity. This transaction, bringing together a top-tier group of global financial institutions for a large loan package, reflects the caliber of financing opportunities we are seeing in Mexico and the rest of the region.”
The deal also illustrates the growth of Milbank’s financial and capital markets deal book in Mexico. Earlier this month, the firm’s leading Latin America group concluded three bond issuances by Mexico’s state-owned oil company, Pemex, with a total value of $1.5 billion. A $750 million portion of that offering represented the biggest single bond issue ever guaranteed by the U.S. Export-Import Bank.
In addition to Messrs. Bellucci and Albarracin, the Terniun financing team included Milbank Leveraged Finance associates Todd Koretzky and Bianca Gersten.
About Milbank
Milbank, Tweed, Hadley & McCloy is a leading international law firm that has been providing innovative legal solutions to clients throughout the world for more than 145 years. Milbank is headquartered in New York and has offices in Beijing, Frankfurt, Hong Kong, London, Los Angeles, Munich, São Paulo, Singapore, Tokyo and Washington, DC.
The firm’s lawyers provide a full range of legal services to the world’s leading commercial, financial and industrial enterprises, as well as to institutions, individuals and governments. Milbank’s lawyers meet the needs of its clients by offering a highly integrated and collaborative range of services across key practice groups throughout its global network. Milbank’s integrated practice is underpinned by its attorneys’ acknowledged technical excellence, sectorial expertise and a strong tradition of innovation and client service.
