Cash And Trade Magazine For Cash and Trade professionals in the Middle East
Amsterdam 31 May 2013 – Deutsche Bank today announced that it has successfully completed the refinancing of a €122.5 million Structured Commodity Trade Finance facility for Travi e Profilati di Pallanzeno (TPP) to finance the working capital needs of the Italian steel company.
Despite challenging market conditions, the syndication attracted significant attention from the international lending market and was over-subscribed. The influx of new lenders and increased commitments from existing participants reflects confidence in TPP and an ongoing commitment from its shareholders.
The facility has a tenor of 3 years and a margin of 2.25% above EURIBOR, leveraging the strength of the secured borrowing base and the underlying commodity. The amount that TPP can draw-down under the new facility is determined by reference to the value of TPP’s inventories and receivables (the borrowing base) and adjusts according to business volumes and commodity price change.
Sander Stuijt, Head of Structured Commodity Trade Finance origination for EMEA at Deutsche Bank, said, “We are extremely pleased with the positive outcome of this transaction. It is testament to the fundamental strength of TPP and strong support of the shareholders. It would not have been possible without the exemplary team work of the finance teams of the borrower and the lender”.
Deutsche Bank acted as Coordinating Mandated Lead Arranger, Sole Bookrunner, Facility Agent and Security Agent on the deal.
