Loma Negra plans to refinance US$40m debt

Argentina-based Loma Negra is looking to refinance the US$40m debt that requires repaying in January 2020. The loan was taken out at under seven per cent interest.

The refinancing targets a maturation in 2022 at 10 per cent interest rate to enable the company to proceed with its US$350m investment project. If it is successful, it will have US$100m in cash reserves to complete the investment plant by mid-2020, said Sergio Faifman, CEO of Loma Negra. The plan expects to raise capacity at its L’Amali plant in Olavarria by 40 per cent.

Leverage of the Camargo Corrêa-owned cement producer stands at below one and its debt stock totals just uS$160m. Its next repayment is due in mid-2020.