SYNDICATED LOAN - Turning Around

SYNDICATED LOAN - Turning Around

Mexico Corporate & Sovereign Strategy

MMexican auto parts maker Nemak’s $1.145 billion dual-currency loan stood out in many ways, but most importantly it marked a successful conclusion to its turnaround story. The loan was part of a refinancing of restructured debt that allowed it to free up collateral, lower funding costs and loosen covenants so it could prepare for growth in the car sector. The $1 billion deal was initially launched when there was still liquidity in the syndicated loan market, says Alvaro Fernández, president of Alfa, the conglomerate of which Nemak is a part. The favorable market conditions made the addition of a $145 million three-year revolver possible, adding operating flexibility without incre

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