January 19, 2012
Bahia Specialty Cellulose faced challenging conditions to obtain $470 million in pre-export financing in late 2010, with lending appetite still suffering the effects of the 2008-2009 credit crisis.
However, with Brazil being such an attractive market, says Claudio Cotrim, financial director at parent company Sateri, many banks and funds saw it as a way to gain exposure to Brazil.
“The secured package worked well for us and the lenders,” Cotrim says of the loan, which was secured by assignment of export contracts of Bahia’s trading company, a pledge of collection accounts and a mortgage on its Brazilian pulp mill.
The wood pulp products company raised $470 million, topping the initial $
Bahia Specialty Cellulose