The Mexican company Compañía Minera Autlán reported that it received a syndicated loan led by the Mexican unit of the Spanish bank Santander for $160 million to refinance its debt, which as of last September was $171.4 million, with which it will refinance 93.3 percent of the liabilities with cost.
The loan is divided into two parts, $130 million to be paid in seven years, with two years of grace and a $30 million in a revolving line for working capital, a part of which will be in Mexican pesos, Autlán informed the financial markets without mentioning the interest rate of the loan. Other participating banks were not disclosed.
According to Autlán's financial statements, reviewed by SteelOrbis, the total debt balance at the end of September of this year was $171.4 million, $42.6 million less than the $214.0 million at the end of last year.
With the syndicated loan, it will refinance 93.3 percent of its total debt. According to Autlán, it will be able to consolidate its current operations, continue with its investment projects and improve its financial flexibility in a dynamic and competitive environment.
Santander joins the banks in Mexico that are financing companies in the steel sector. Last month, the English bank HSBC led a syndicated loan for $150 million to the Mexican subsidiary of Kloeckner Metals for its decarbonization process and last June, BBVA granted green financing with DeAcero for $200 million.