TCL poised for new loan syndication

TCL poised for new loan syndication
28 May 2015

Trinidad Cement Limited (TCL) is set to launch a US$245m five-year term loan as it seeks to turn a new leaf following the completion of a debt restructuring earlier this year, Reuters reports.

Bank meetings in New York today will kick off a syndication being led by Credit Suisse and Citigroup, whose bridge loan to the company is expected to be taken out with this transaction.

After failing to bring a debut international bond to market last year, TCL was forced in October to miss a debt payment for the second time this decade and enter into restructuring talks with its creditors.

Since then, the company has used a US$245m nine-month bridge loan through Credit Suisse and Citigroup to prepay its secured and unsecured debt at a discount.

That loan carried an interest rate of Libor plus 625bp, with quarterly increments of 1%.

The restructuring process also saw Cemex, the single largest shareholder in TCL, up its stake from 20 per cent to 39.5 per cent through a rights offering that raised an additional US$57.13m.

Published under Cement News