Early this week, Brazil's Gerdau and its soon-to-be merged subsidiary Acominas are expected to close an export deal in the cross-border market that will probably be sized near US$100 million, though it could turn out larger. "We haven't defined how big the first tranche is going to be," said Gerdau CFO Osvaldo Schirmer. Fitch Ratings has approved up to US$250 million under the preliminary rating of BBB-'.
Lead JPMorgan Securities completed the roadshow for the transaction last week. Targeting the private placement market, the deal is backed by future receivables generated from steel-related exports. Proceeds are going to enhance the debt profile. "We are refinancing some short-term debt," Schirmer said.