International Steel loan to contain term loans A and B, and revolver

By Sara Rosenberg

New York, March 13 - International Steel Group's $1 billion senior credit facility, which is expected to hit the market either this month or next month, will consist of a $300 million two-year term loan A, $400 million four-year term loan B and a $300 million three-year revolver, according to a news release. UBS Warburg LLC, Goldman Sachs Credit Partners LP and CIT Group/Business Credit, Inc. are the lead banks on the deal.

Proceeds from the term loan will be used to help fund the acquisition of the steelmaking business of Bethlehem Steel Corp. The revolver will be used for working capital purposes.

"We are delighted that these three leading financial institutions have committed their support to ISG and are backing the efforts of ISG Chief Executive Officer, Rodney Mott, to consolidate America's steel industry and return it to the vital and strong industry it once was. This investment in the industry also confirms the wisdom of President Bush's steel tariff policies and the efforts and courage of the leadership of the United Steelworkers of America. Without these efforts, the American steel industry would have been destroyed by imports dumped into this country by illegally subsidized steel producers," said Wilbur Ross, Jr., chairman of WL Ross, founder and chairman of ISG, in a news release.

International Steel is a Cleveland steel company. Bethlehem Steel has been reorganizing under chapter 11 protection since Oct. 15, 2001.

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