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Deal Analysis: Mansfelder Kupfer & Messing
23 July 2009
Dickon Harris analyses one of this year’s first true commodity financing syndications – a borrowing base facility for Kazakhmys’ subsidiary Mansfelder Kupfer & Messing (MKM).
Read more:
MKM
Kazakhmys
borrowing base
metals refinancing
copper
Deutsche Bank
Mansfelder Kupfer & Messing
Kazakhstan
When Deutsche Bank decided to launch this commodity refinancing in the syndications market in March, it did so knowing that many of its previous syndicate would drop out. In the end 75% of lenders had to be replaced. Not only did Deutsche Bank manage to do this by the client’s deadline, they secured an oversubscription to boot.
The deal re-financed a Eu230 million ($324 million) borrowing base facility which Deutsche Bank closed in September 2006 for MKM, a medium-sized German copper products producer and subsidiary of LSE-listed Kazakh copper giant Kazakhmys. Needing to refinance the facility Kazakhmys approached Deutsche Bank. The bank agreed to solely underwrite the three-year financing making it one of the first to avoid a club-deal structure for a secured commodity financing this year.
The previous deal and structureThis deal was already remarkable even before it launched. Kazakhmys acquired MKM at the end of 2004 when...
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