In a massive boost for the world′s second largest mining company, Vale has secured a US$3 billion credit line from a consortium of 27 international banks - twice the amount originally bid for by the Brazilian company.

The transaction, which closed on 11 April and drew on counsel from four jurisdictions, gives Vale access to a US$3 billion revolving credit facility which it will add to an existing US$1.6 billion revolving credit line due to mature in 2011 and 2012.

Alongside its in-house team, Vale sought counsel from US firm Hughes Hubbard & Reed LLP, Canada′s Stikeman Elliot LLP and Swiss firm Bär & Karrer AG.

The consortium of banks was led by led by Crédit Agricole, JPMorgan, Mizuho and Natixis and sought advice from White & Case LLP, Brazil′s Machado, Meyer, Sendacz e Opice Advogados and Swiss firm Pestalozzi Attorneys at Law Ltd.

The other members of the consortium were Santander, HSBC, Bank of America, The Bank of Nova Scotia, CIBC, Société Générale, Bank of Tokyo-Mitsubishi UFJ, Bradesco, Sumitomo, Royal Bank of Canada, Intesa San Paolo, BNP Paribas, Deutsche Bank, Citibank, RBS, Barclays, Bank of China, Morgan Stanley, Credit Suisse, ANZ, Goldman Sachs and National Australian Bank and DZ Bank,

Structured to allow a number of Vale′s subsidiaries to draw upon the fund during its five-year timeframe, the financing is intended to be used as a ′short term liquidity buffer′ to enhance the company′s liquidity and allow more efficient cash management.

According to Carlos Viana, partner at the Miami office of White & Case, despite the potential challenge presented by the large number of banks involved and the various borrower jurisdictions involved in the transaction, "Vale and experienced international counsel ran a tight ship, resulting in flexible terms for Vale, a successful syndication with major oversubscription and silky smooth execution."

In October, Machado Meyer advised the banks in a US$1.2 billion loan deal with the Export-Import Bank of China and the Bank of China, with Vale relying on in-house counsel.

Counsel to Vale

General counsel Fabio Eduardo de Pieri Spina


Hughes Hubbard & Reed LLP

Partners Amy Dulin and Mark Denham and associate Emilio Saiz


Stikeman Elliot LLP

Partner Peter Hamilton and associate Enza Agazzi


Bär & Karrer AG

Partner Ralph Malacrida and associate David Barst

Counsels to the banks


White & Case LLP

Partners Carlos Viana and Raymond Simon, of counsel Victor Mendoza, and associates Thomas Pate and Isaac Tendler


Machado, Meyer, Sendacz e Opice Advogados

Partners Nei Zelmanovits and Marina Ferraz Aidar


Pestalozzi Attorneys at Law Ltd

Partners Oliver Widmer and Urs Klöeti and associate Sandra Habermacher

(Latin Lawyer 21.04.2011)

(Notícia na Íntegra)