October 15, 2008
GE Corporate Lending Increases Project Financing for Severstal Columbus to $577.5 Million
GE Commercial Finance Corporate Lending today announced a $100 million increase in senior secured financing for Severstal Columbus, a next generation steel mill based in Columbus, MS. This increase in funds brings the total project financing for the company, formerly known as SeverCorr, to $577.5 million. GE Capital Markets arranged the transaction as co-lead arranger. The loan will be used to expand the mill, doubling its steel producing capacity to 3 million tons per year.
The greenfield construction of the Severstal Columbus mill, owned by OAO Severstal, a leading global metals and mining company, 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.
To view a brief video featuring Structured Finance Senior Managing Director, Jeff Lupoff, discussing structured finance at GE Corporate Lending, visit:
To view a brief video featuring GE Corporate Lending's Metals & Mining Industry Leader, Greg Eck discussing trends within the sector, visit:
To better 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 key industries: Aerospace & Defense; Automotive; Chemicals & Plastics; Construction; Food, Beverage & Agribusiness; Financial & Business Services; Forest Products; Metals and Mining; Restructuring; Retail; Technology & Electronics; and Transportation.
About GE Corporate Lending
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. Visit www.gelending.com/clnews to learn more.
About GE Commercial Finance
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, Connecticut. GE (NYSE: GE) is a diversified global infrastructure, finance and media company that is built to meet essential world needs. From energy, water, transportation and health to access to money and information, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. GE is Imagination at Work. For more information, visit the company's Web site at http://www.ge.com.
About Severstal Columbus
Severstal Columbus is a next generation mill that produces high-quality steel by combining an electric arc furnace steel making process using scrap metal with an integrated finishing plant. It is located near a number of large steel customers, making its distribution channels more efficient.
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