St. Marys Cement recently tweaked its five-year $300 million term loan to allow the company to transfer certain shares to a newly formed company to allow for tax savings. While St. Marys Cement has received approval from the Canadian Tax Authority for the transfers, it needed to amend its facility so the transfers would not be restricted under the terms of its credit agreement because the facility is secured by all the stock in the company's group. It was an amendment that the company needed to receive to complete its tax reorganization, commented Mike Pengelly, St. Marys Cement cfo.
The pricing on Toronto-based St Marys Cement's $300 million term loan remained unchanged through the amendment, however, Pengelly declined to disclose the terms. Citigroup leads the credit. Pengelly said the bank was chosen by the company's parent, Votorantim Cimentos, an international cement manufacturer based in Brazil that had dealings with Citigroup both in Brazil and abroad.