News Column

Biosev Closes a US$440 MM 3-year Revolving ACC Facility

July 3, 2014

By a News Reporter-Staff News Editor at Agriculture Week -- Biosev S.A (BM&FBOVESPA: BSEV3), the world's second largest sugarcane processor, with 11 industrial units strategically located in 4 Agro-industrial Clusters in Brazil, announces the closing of a 3-year revolving ACC credit facility in the amount of US$440 million. The mandated lead arranger and coordinating book runner of the transaction was ING Bank. Other major participants were ABN AMRO Bank, Banco Latinoamericano de Comercio Exterior - BLADEX, Rabobank, BNP Paribas and Societe Generale. The final commitment of the facility exceeded twice the initial amount due to the increased demand by the 10 banks involved in the syndicate. The transaction bears interest at a rate of LIBOR plus 4.4% per annum, equivalent to approximately 4.9% per annum.

This transaction has strategic relevance to Biosev and it was designed to achieve the following objectives: (1) extend the companys debt profile; (2) provide increased financial flexibility in terms of treasury management and (3) guarantee access to funding on adequate and competitive base.

According to Paulo Prignolato, Biosev CFO: "Biosev reaffirms its commitment to lengthening its debt maturity profile and reducing its financial leverage. This transaction demonstrates the strength of our relationship with the banking community and confirms the quality of our business and operations. It is also a sign of the market's confidence in our recently announced initiatives, already disclosed to the public, which are associated with our 2014 Business Plan."

Biosev is the world's second largest sugarcane processor, with 11 industrial units strategically located in four Agro industrial Clusters in Brazil. The Company is controlled by the Louis Dreyfus Commodities group and began operating in the sugar and ethanol industry in 2000, when it acquired its first unit in Brazil. Since then it has built a successful track record of growth through both acquisitions and expansion projects that have led its crushing capacity to increase from 0.9 million metric tons/year in 2000 to 36.4 million metric tons/year today. Biosev manages 340,000 hectares of land and has surplus biomass power generation capacity of 1,346 GWh. The Company adopts the highest standards of corporate governance and its stock is traded on the Novo Mercado segment of the Brazilian stock exchange (BM&FBOVESPA).

Keywords for this news article include: Biosev S.A, Agriculture, Agro-industrial.

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Source: Agriculture Week

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