Group 1 - The loan of $800 million is raised by AV Minerals (Netherlands) NV, the holding company of Novelis, to support its elevated capital requirements due to a fire at the Oswego facility [1][7]. - The loan agreement is priced at 125 basis points above the three-month Secured Overnight Financing Rate (SOFR), which is currently at 4.05%, leading to a final loan pricing of approximately 5.30% [4][5]. - The five-year term loan has an average maturity of four years, with repayments scheduled in the third, fourth, and fifth years, and is underwritten equally by three banks: MUFG, Standard Chartered, and HSBC [5][6]. Group 2 - The Oswego County plant in New York is crucial for Novelis, supplying 40% of the aluminum sheets used by U.S. automakers, with Ford being a significant client [6][7]. - There have been three reported fires at the Oswego facility, with the largest occurring in September and the most recent on November 21, impacting operations [7]. - The funds from the loan are intended to help Novelis restart full operations at the affected plant [7].
Novelis holding company gets $800 million five-year loan
The Economic Times·2025-12-23 18:37