RLPC-Evraz signs $3.2 bln loan, lines up IPSCO deal-bankers

LONDON, March 14 (Reuters) - Russian steel major Evraz Group (HK1q.L: Quote, Profile, Research) is signing a $3.214 billion refinancing loan on Friday, and has also mandated banks to lead the financing backing its acquisition of IPSCO's North American plate and pipe business from Swedish steel firm SSAB (SSABa.ST: Quote, Profile, Research), banking sources said.

Evraz announced on Friday it had agreed to buy IPSCO's Tubulars business for $4.025 billion and to sell on IPSCO's U.S. tubular and seamless business to Russian pipe maker TMK (TRMKq.L: Quote, Profile, Research) for $1.7 billion. To read more, please double click on [ID:nL14651581].

Evraz added it would finance the acquisition with a bridge loan raised at the Evraz level, as well as a non-recourse term loan arranged at the acquired company level.

Banking sources told Reuters Loan Pricing Corp on Friday that the bridge loan has a one-year maturity and that ABN AMRO and Calyon are involved in arranging the financing.

Separately, Evraz is signing banks into its $3.214 billion loan. Proceeds will refinance a $1.8 billion bridge loan agreed in 2007 that backed its acquisition of Oregon Steel Mills and also for general corporate purposes.

That loan, which pays a margin of 180 basis points (bps) over LIBOR, closed oversubscribed and as a result lenders' commitments have been scaled back.

The deal, which is split between a $2.714 billion, five-year tranche secured on assignment of trade receivables and a $500 million, three-year unsecured tranche, was arranged by ABN AMRO, Bank of Tokyo-Mitsubishi UFJ, Barclays, BNP Paribas, Calyon, Commerzbank, Deutsche Bank, ING Bank, Sumitomo Mitsui Banking Corp and UBS.

(Reporting by Christopher Mangham; editing by Rory Channing)