Chilean pulp and paper producer CMPC obtains US$600M credit facility to refinance debt, go toward US$1.3B capital investment plan
October 25, 2011
– Chile's Empresas CMPC SA has signed for a US$600 million credit facility with international banks to refinance its debt and to help pay for its $1.3 billion capital investment plan through 2012, Dow Jones Newswires reported Oct. 19.
The Santiago, Chile-based company has subscribed the debt in two parts: a $400 million loan over five years and a $200 million loan over three years.
Pulp and papermaker CMPC is Chile’s second largest in the industry, reported Dow Jones.
Interest charges for the larger credit facility are set at 0.65% a year over the London Interbank Offered Rate (Libor).
Various lenders are involved, including Bank of America, Export Development Canada, J.P. Morgan Chase Bank, Scotiabank & Trust and the Bank of Tokyo-Mitsubishi UFJ, Dow Jones reported.
The 90-year-old company operates in eight countries and generates more than 14,700 direct jobs, according to a 2010 statement on its website.
The primary source of this article is Dow Jones Newswires, New York, New York, on Oct. 19, 2011.