CORRECTED-Brazil's Biosev borrows $210 mln from banks
(Corrects headline, first and second paragraphs and adds July 13 to make clear that financing was completed before IPO; drops reference in first paragraph to funding being used for expansion projects.)
* Biosev, six private banks arrange syndicated loan
* Company put off share sale last week on poor demand
* Louis Dreyfus' Biosev seeks to expand in cane sector
RIO DE JANEIRO, July 24 (Reuters) - Biosev, the Brazilian sugar and ethanol unit of commodities powerhouse Louis Dreyfus Corp borrowed $210 million from private banks on July 13, before failing to conclude an initial public offering.
Biosev obtained a $126 million, three-year amortizing loan that expires in January 2015 and an additional $84 million through a revolving credit line expiring on the same date, the company said in statements emailed to Reuters on Tuesday.
The company, which plans to expand in Brazil's sugar cane sector, suspended on Thursday its initial public offering for an indefinite period after uncertainty over global markets sapped investor appetite for the deal.
Biosev's subsidiary, LDC Bionergia International SA, obtained the loans from a pool of banks led by Credit Agricole CIB, Natixis SA, ABN Amro Bank, ING Bank NV, Standard Chartered Bank and Israel Discount Bank, the statement said.
Chief Financial Officer Serge Stepanov said in the statement the first part of the loan will not increase the company's debt load as it will replace more expensive, shorter-dated debt. The revolving credit line, on the other hand, will help Biosev cater to its short-term needs for funding, he added.
French group Louis Dreyfus was one of the first multinational companies to enter Brazil's cane sector, when it snapped up the ailing Santelisa Vale milling group in 2009 in what many industry specialists thought was a steal in the wake of the global financial crisis.
Santelisa Vale, considered the crown jewel of the sector and which had some of the most modern and efficient mills at the time, was recently renamed Biosev in advance of Louis Dreyfus' planned spinoff of the unit. (Reporting by Walter Brandimarte; Editing by Guillermo Parra-Bernal and Matthew Lewis)
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