Stemcor has announced the completion and signing of USD 480,000,000 multicurrency Revolving Credit Facility, an oversubscription of USD 80,000,000.

BNP Paribas, Fortis Bank (UK branch), ING Bank NV, Société Générale Corporate & Investment Banking and The Royal Bank of Scotland plc were book runners and mandated lead arrangers. Credit Europe Bank, Credit Suisse, DBS Bank, Standard Chartered Bank and State Bank of India were mandated lead arrangers.

The transaction received very strong support from Stemcor’s relationship banks. The syndicate comprised a total of thirty one banks and, due to healthy demand, the launch amount of USD 400,000,000 was increased to USD 480,000,000.

The proceeds of the RCF will be used to repay the outstanding drawings under the Company’s existing 364 day USD 550,000,000 revolving tranche, which matures on May 12th 2009 and for general purposes in the ordinary course of business. A further USD 150,000,000 revolving tranche matures in May 2011.

Mr Michael Broom director of Group Treasury at Stemcor said that "Over the forthcoming year, with lower steel prices and reduced trade flows, we anticipate a substantially reduced need for working capital and hence we scaled the amount back. Given the current economic climate and the sharp decline in demand for commodities, especially steel, it is particularly pleasing that our valued banking partners have continued to show such confidence in Stemcor. We are now in a strong liquid position for the next twelve months and will be poised to book additional business when the market picks up, hopefully in the latter part of 2009."