CHICAGO Novelis Inc. has
landed a $1-billion credit line that will be used to fund
working capital, capital expenditures and general corporate
expenses at the aluminum company, according to a division of
Wells Fargo & Co.
"We are pleased to have been
able to complete such an important financing for Novelis as
their business continues to grow around the world," Henry
Jordan, chairman and chief executive officer of Wells Fargo
Capital Finance, said in a statement June 4. The bank acted as
left lead arranger, book manager and administrative agent on
the credit facility, which refinanced Novelis existing
credit facility, Wells Fargo said.
Novelis senior vice president
and chief financial officer Steve Fisher said in a statement
that the company is in the middle of a "significant investment
program involving major capacity expansions" to meet growing
demand around the world.
"The amended credit facility
will further strengthen our liquidity and provide additional
flexibility, helping to support these investments," he
Fisher did not specify which
projects the facility might finance, but the company has
recently embarked on a number of expansion projects.
In the United States, for example, Atlanta-based Novelis
plans to bolster heat-treatment capacity at its operations in
Oswego, N.Y. (
amm.com, May 14). It has also recently broken
ground on a new aluminum recycling center in Nachterstedt,
amm.com, Nov. 27). In addition, Novelis aims to
expand capacity at its rolling facility in Pindamonhangaba,
amm.com, May 14), and last October, Novelis opened
the largest aluminum beverage can recycling facility in Asia in
Yeongju, South Korea (
amm.com, Oct. 24).