DLA Piper, Hughes Hubbard and other international firms advise on USD 1.125 billion financing for Gerdau

DLA Piper Peru advised the group of financial institutions that extended a revolving credit facility of USD 1.125 million to Brazilian steelmaker Gerdau and several of its subsidiaries, in a cross-border transaction involving borrowers in Argentina, Brazil, the British Virgin Islands, Canada, Mexico, Peru and the United States.

The financing, which closed on 31 August 2026, was one of the period’s most significant regional banking transactions by size, its multi-jurisdictional structure and the number of firms advising lenders and borrowers.

The DLA Piper Peruteam, one of the aspects of particular interest to Latin Counsel, comprised Sergio Barboza, Ricardo Mercado Espinosa and Alexandra del Río Cárdenas, based in Lima. The firm advised the group of financial institutions alongside Hughes Hubbard & Reed, Pinheiro Neto Advogados, Creel, García-Cuéllar, Aiza y Enríquez and Allende & Brea.

The participating banks were Banco Bilbao Vizcaya Argentaria (BBVA), Banco Santander, Bank of America, BNP Paribas, Citibank, Crédit Agricole Corporate and Investment Bank, JPMorgan Chase Bank, Mizuho Bank and Natixis. Crédit Agricole Corporate and Investment Bank acted as facility agent.

The facility was structured as a senior unsecured revolving corporate credit facility, intended to fund general corporate purposes of the Gerdau group and its subsidiaries. The new financing replaced a previous facility of USD 875 million, increasing the company’s available committed capacity by approximately 29% .

The facility has an initial term of five years, with a scheduled maturity in August 2031and the option to extend it for a further year.

On the lenders’ side, Hughes Hubbard & Reed coordinated the international advice, with a team led by partner Emilio Saiz, alongside partner Sean Reilly, counsel Justin Cohen and associates Santiago Diaz-Seijido, George Cortina and Anna Semidei.

In Brazil, the banks were advised by Pinheiro Neto Advogados, with a team led by partner Bruno Balduccini, alongside Francisco Renato Gaiotto de Melo and Sophia Helena de Queiros Assis. In Mexico, Creel, García-Cuéllar, Aiza y Enríquezacted, with Giovanni Ramírez Garrido, Christian Dorantes Picazo, Sofía Ramírez Esparza, Héctor Trigos Padilla and Macarena Ramos López. In Argentina, Allende & Brea advised the banks through partner Jorge Mayora and associate Santiago Cassina.

For Gerdau and its subsidiaries, lead counsel was Milbank, with teams in São Paulo, New York and Washington, D.C. In Brazil, the team included Tobias Stirnberg, Ana Bueno, Elora Farias and Maria Rafaela Nunes; in New York, Andrew Walker and Michelle Song; and in Washington, D.C., Bijan Ganji, Joel Cavanaugh and Bridget Golob.

Gerdau was also advised by Tauil & Chequer Advogados, in association with Mayer Brown, through Rodolfo Constantino de Tella and Anna Gouvea; Beccar Varela, with Alejandro Poletto, Eugenia Radaelli and Micaela Navarrine; Maples Group, with Ruairi Bourke and Chloe Parsons; Ritch Mueller, with Gabriel del Valle, Carlos Chiossone and Nicolás Cárdenas; and Garrigues Perú, with Sergio Amiel and Mónica Yrrarazabal.

The transaction reflects the growing sophistication of corporate financing structures in Latin America and the need to coordinate legal advice across several jurisdictions at once. It also highlights the role of Latin American teams in major international banking transactions, particularly the prominent role of DLA Piper Peru in a regional-scale financing for one of the region’s leading steel groups.

Key facts

• Transaction: revolving credit facility of USD 1.125 million for Gerdau and its subsidiaries
• Closing date: 31 August 2026
• Use of proceeds: general corporate purposes
• Jurisdictions involved: Argentina, Brazil, the British Virgin Islands, Canada, Mexico, Peru and the United States
• Banks: BBVA, Banco Santander, Bank of America, BNP Paribas, Citibank, Crédit Agricole CIB, JPMorgan Chase Bank, Mizuho Bank and Natixis
• Facility agent: Crédit Agricole Corporate and Investment Bank
• Term: five years, with a scheduled maturity in August 2031 and the option to extend it for a further year
• Relevance to Latin Counsel: DLA Piper Peru advised the lenders
• DLA Piper Peru team: Sergio Barboza, Ricardo Mercado Espinosa and Alexandra del Río Cárdenas
• International coordination for the banks: Hughes Hubbard & Reed
• Other bank advisers: Pinheiro Neto Advogados, Creel, García-Cuéllar, Aiza y Enríquez and Allende & Brea
• Gerdau advisers: Milbank, Tauil & Chequer Advogados in association with Mayer Brown, Beccar Varela, Maples Group, Ritch Mueller and Garrigues Perú
• Structure: senior unsecured revolving corporate facility
• Impact: the new facility replaced a previous one of USD 875 million, increasing available committed financing by approximately 29%