Eurasian Natural Resources Corp. Plc, a producer of ferro alloys and iron ore in Kazakhstan, is said to be seeking a loan of as much as $500 million to refinance debt.
The one-year credit line has been marketed to lenders on a so-called club basis and syndication is expected to finish by the end of the month, according to three people with knowledge of the loan, who asked not to be identified as negotiations are private. Bank of Tokyo-Mitsubishi UFJ Ltd has coordinated the transaction for the London-listed company, the people said.
The new debt replaces a $467 million loan arranged by Credit Agricole and signed in March 2011, according to data compiled by Bloomberg. That revolving credit facility matures in February 2014 and pays an interest margin of 250 basis points more than the London interbank offered rate, the data show. A basis point is 0.01 percentage point. Under a revolver, money repaid can be borrowed again.
“The company is currently reviewing its balance sheet structure and an announcement will be made in due course,” said Charlotte Kirkham, ENRC’s London-based spokeswoman, in an e-mail.
In a club deal, syndication is an informal process that usually includes the borrower.