Hylsamex pays debt with US$175mn loan

Mexican steelmaker Hylsamex (BMV: HYLSAMEXB) has secured a US$175mn medium-term bank loan allowing it to pay off US$31mn in debt and reduce consolidated financial expenses by 10%, the company told Mexico City's bourse. Citibank and Bank of America extended Hylsamex unit Galvak the five-year loan, which also carries a one-year grace period. Thanks to the financing, Hylsamex has paid off its B-series debt, which totaled US$223mn on June 30 this year. "Hylsamex's debt is now concentrated in its operating companies - Hylsa and Galvak - thereby simplifying the capital structure and reducing financial risk," the company said. Mexican conglomerate Alfa is in the process of spinning off Hylsamex, which sold 2.89Mt of steel last year.