Noranda Trelleborg refinance takeover of Falconbridge

Toronto-based Noranda Inc. (TSE) and Swedish mining conglomerate Trelleborg A.B. recently announced a $2-billion refinancing of their investment in Falconbridge Ltd. Noranda and Trelleborg, which each own 50% of Falconbridge following last year’s $37-per-share takeover, say the arrangement is one of the largest financings ever organized for a Canadian corporation.

It consists of two floating rate 7-year term credit facilities; a US$950 million syndicated bank facility arranged in the European markets and a $900 million syndicated bank facility arranged in the Canadian market.

Noranda and Trelleborg have each separately guaranteed US$475 million of the European credit.

Now a private company, based in Toronto, Falconbridge is the world’s second largest producer of nickel and a major producer of copper and zinc. Its principal mining and smelting operations are located in Canada, its nickel facility refinery is in Norway and it produces ferro- nickel in the Dominican Republic.