Essar Steel seeks $350 million asset-based term loan via Deutsche Bank

By Sara Rosenberg

New York, Sept. 12 - Essar Steel Algoma Inc. is in market with a $350 million two-year senior secured asset-based term loan that is being talked at Libor plus 750 basis points with a 1.25% Libor floor and an original issue discount of 96, according to a market source.

The loan is non-callable for one year, then at 102 for six months and to par thereafter, the source said.

Deutsche Bank Securities Inc. is the sole lead arranger and bookrunner on the deal.

Proceeds will be used to repay in full all outstanding amounts and terminate all commitments under the company's existing senior secured asset-based revolving credit facility.

Closing is expected later this month.

Essar Steel is a Sault Ste. Marie, Ontario-based manufacturer and seller of rolled steel products, including hot and cold rolled sheet and plate.

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