Gerdau Lines Up a US$1.125 Billion Revolving Credit Facility
Brazil · INDUSTRY
Key Facts
- —Facility size US$1.125 billion senior unsecured global revolving credit facility
- —Term Five years, maturing end of August 2031, with a possible one-year extension
- —Lenders BBVA, Santander, Bank of America, BNP Paribas, Citibank, Crédit Agricole CIB, J.P. Morgan Chase, Mizuho Bank, Natixis
- —Purpose Global working capital and liquidity; replaces a US$875 million facility
- —Debt metrics Gross debt about 13.56 billion reais; net debt 0.69 times EBITDA
The new line boosts Gerdau’s committed liquidity by about 29% and replaces a smaller facility.
Gerdau has lined up a US$1.125 billion revolving credit facility, according to Valor Econômico. The Brazilian steelmaker signed the senior unsecured global line on Monday, August 31, 2026.
Gerdau Secures New Credit Line
In short, gerdau agreed to a senior unsecured global revolving credit facility of US$1.125 billion. The news was reported by Valor Econômico on Monday, August 31, 2026.
The facility has a five-year term, maturing at the end of August 2031. It also includes a possible one-year extension.
Lenders Behind the Facility
The lenders are BBVA, Santander, Bank of America, BNP Paribas, Citibank, Crédit Agricole CIB, J. P.
Morgan Chase, Mizuho Bank and Natixis. These nine banks are providing the committed line.
No single bank was named as lead arranger. The group works together on the facility.
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Purpose and Replacement
Meanwhile, the facility is for global working capital and liquidity. It replaces a previous US$875 million global revolving credit facility.
Therefore, the change increases Gerdau’s available committed liquidity by about 29%. The new line is fully committed but was not drawn at signing.
Understanding Revolving Credit Facilities
A revolving credit facility is a committed line a company can draw on and repay repeatedly. Banks charge a fee to keep it available even when it is unused.
In addition, senior unsecured means the lenders rank ahead of shareholders but hold no specific collateral. This structure is common for large corporate borrowers.
Gerdau’s Financial Position
As a result, gerdau’s most recent disclosed figures put gross debt at about 13.56 billion reais. Net debt stands at 0.69 times EBITDA.
At 5.1947 reais to the US dollar on August 31, 2026, that gross debt is roughly US$2.6 billion. The average debt term is about 7.6 to 7.8 years.
Liquidity Overview
Liquidity stands at about 10.2 billion reais, roughly US$2 billion. This includes about 5.6 billion reais in cash and about 4.6 billion reais in revolving facilities.
Meanwhile, the new facility adds to this liquidity buffer. It provides extra financial flexibility for the company.
Gerdau’s Market Role
For example, gerdau is one of Brazil’s largest steelmakers. It is also the largest producer of long steel in the Americas.
As a result, this credit line supports its ongoing operations across the region. The company uses such facilities for everyday cash needs.
Impact of the New Facility
The new facility boosts Gerdau’s committed liquidity by about 29%. This is a significant increase in available funds.
Still, the line was not drawn at signing. It remains available for future needs.
Looking Ahead
Overall, the facility matures at the end of August 2031, with a possible one-year extension. This gives Gerdau long-term access to credit.
In short, the new revolving credit facility strengthens Gerdau’s financial position. It replaces an older, smaller line and offers more liquidity.
Frequently Asked Questions
What is a revolving credit facility?
A revolving credit facility is a committed line a company can draw on and repay repeatedly. Banks charge a fee to keep it available even when it is unused.
Who are the lenders in Gerdau’s new facility?
The lenders are BBVA, Santander, Bank of America, BNP Paribas, Citibank, Crédit Agricole CIB, J. P.
What is the size of Gerdau’s new credit facility?
Gerdau’s new facility is US$1.125 billion. It replaces a previous US$875 million global revolving credit facility.
How does the new facility affect Gerdau’s liquidity?
The new facility increases Gerdau’s available committed liquidity by about 29%. It is fully committed but was not drawn at signing.
Connected Coverage
Sources: Valor Econômico; Gerdau investor relations; SEC filings.
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