Daily News: January 24, 2014

BofA Business Capital Arranges $670MM ABL for OAO Severstal

Bank of America Business Capital, acting as administrative agent, closed a five-year, $670 million consolidated asset-based revolver to the North American operations of OAO Severstal. The newly syndicated facility was used to refinance a prior asset-based credit facility.

Bank of America Merrill Lynch has had a relationship with Severstal since 2004.

“We are pleased to assist Severstal on this new transaction and provide a more streamlined financing structure for its North America operations,” said Jeff McLane, president of Bank of America Business Capital. “We look forward to helping Severstal grow and prosper in the coming years.”

As a result of the deal and the refinancing, Severstal was able to considerably decrease the cost of debt and has since substantially improved the conditions of financing.

Cherepovets, Russia-headquartered OAO Severstal is one of the largest vertically integrated steel and mining businesses in the world, with operations in Russia, Europe, Brazil and the U.S.