GE Corporate Lending Increases Project Financing for Severstal Columbus
10/16/2008 - GE Commercial Finance Corporate Lending increases senior secured financing for Severstal Columbus, formerly known as SeverCorr, by $100 million.
GE Commercial Finance Corporate Lending has increased senior secured financing for Severstal Columbus, formerly known as SeverCorr, by $100 million.
This increase in funds brings the total project financing for the Columbus, Miss., based ‘next-generation steel mill’ to $577.5 million. GE Capital Markets arranged the transaction as co-lead arranger. The company said it will use the loan to expand the mill, doubling its steel producing capacity to 3 million tons per year.
Greenfield construction of the Severstal Columbus mill, now owned by OAO Severstal, began in 2005 with project financing led by GE Corporate Lending. With the first phase of construction complete, the mill currently has capacity to produce 1.5 million tons per year of high quality, flat-rolled steel for the growing southern U.S. steel market.
“GE has supported our borrowing needs throughout this project from ground breaking to the current expansion,” said Jim Hrusovsky, CEO of Severstal Columbus. “Their project finance and steel industry experts have worked closely with us to stay abreast of our business strategy and provide financing to help execute our plans.”
“Understanding the nuances involved in structuring a project financing for the steel industry is something we specialize in,” said Jeff Lupoff, Senior Managing Director of GE Corporate Lending’s Structured Finance Group.
With $16 billion in assets, GE Commercial Finance Corporate Lending is one of North America’s largest providers of asset-based, cash flow, structured finance and other financial solutions for mid-size and large companies. From over 30 offices throughout the U.S. and Canada, GE Corporate Lending specializes in serving the unique needs of borrowers seeking $20 million to $2 billion and more for working capital, growth, acquisitions, project finance and turnarounds.
To meet the unique financing needs of businesses, GE Corporate Lending has a team of Industry Leaders supported by research analysts. These industry experts help build smarter financing solutions for companies across a range of key industries.
GE Commercial Finance, which offers businesses around the globe an array of financial products and services, has assets of over $300 billion and is headquartered in Norwalk, Conn. GE is a diversified global infrastructure, finance and media company that is built to meet essential world needs. Serving customers in more than 100 countries and employing more than 300,000 people worldwide, GE is Imagination at Work.
Severstal Columbus is a next-generation mill that produces high-quality steel by combining an electric arc furnace steelmaking with an integrated finishing plant. It is located near a number of large steel customers, making its distribution channels more efficient.
