Cosan Targets Pre-Export Facility

Cosan is looking to raise an up to $250m pre-export facility in the loan market. The syndicated loan carries a 3-year tenor and a margin of Libor plus 400bp, say bankers on it. Cosan had announced plans to raise a facility in June, and in August suggested it would seek to raise $350m to help pay down maturing short-term debt. Proceeds from the loan are also earmarked for working capital. The deal is joint-led by Calyon, Standard Bank and BES, and is targeting close in the first week of November. At least 2 participants are heard to have joined already, though it is not clear how enthusiastic the market will end up being about this first time USD loan borrower. A recent company statement shows net debt to Ebitda in Q1 stood at 5.70x, and fell to 3.70x in Q2, though pro forma including acquisitions that debt would stand at 2.98x, it claims. The leverage figures in the upper range are enough to have scared away at least one bank. The new facility amortizes over the 3-year life and has an average life of 2 years. The deal is among the first syndications to come to market since Bimbo raised a $1.7bn dual currency facility in March. Others are also being launched, say bank market lenders, suggesting a reopening of the market.