Bank of America Business Capital, acting as administrative agent, has closed a new five-year, $670 million consolidated asset-based revolver to the North American operations of OAO Severstal. The newly syndicated facility was used to refinance a prior asset-based credit facility.

Bank of America Merrill Lynch has had a relationship with Severstal since 2004. “We are pleased to assist Severstal on this new transaction and provide a more streamlined financing structure for its North America operations,” said Jeff McLane, president of Bank of America Business Capital. “We look forward to helping Severstal grow and prosper in the coming years.”

As a result of the deal and the refinancing, Severstal was able to considerably decrease the cost of debt and has since substantially improved the conditions of financing.

Headquartered in Cherepovets, Russia, OAO Severstal is one of the largest vertically-integrated steel and mining businesses in the world, with operations in Russia, Europe, Brazil and the U.S. OAO is a public company with shares traded on the RTS, MICEX, and LSE. The North American operations consist of an integrated steel mill in Dearborn, Mich., (Severstal Dearborn) and a mini-mill in Columbus, Miss. (Severstal Columbus).

Bank of America Business Capital is one of the world’s largest asset-based lenders, with more than ten primary offices serving the United States, Canada and Europe. It provides corporate borrowers with senior secured loans of $10 million or more, cash management, interest rate and foreign exchange risk management, and a broad array of capital markets products.