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 said.
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, Germany (amm.com, Nov. 27). In addition, Novelis aims to expand capacity at its rolling facility in Pindamonhangaba, Brazil (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).