SAO PAULO, March 21 (Reuters) - Brazilian steelmaker CSN

said on Saturday it has signed a binding commitment

letter with a group of banks for a new syndicated secured credit

facility of $1.2 billion, with the potential to increase to $1.4

billion.

The move is part of a broader deleveraging plan announced in

January, CSN said in a securities filing, and is expected to be

secured partly by assets earmarked for divestment, including the

company's cement unit.

* Lenders include Morgan Stanley ( MS ), Citigroup ( C ), Credit

Agricole, HSBC ( HSBC ), Banco XP, BNP Paribas, Banco do Brasil and

Bradesco.

* Subsidiary CSN Inova Ventures to serve as borrower, CSN

and cement unit CSN Cimentos as guarantors.

* Interest rate beginning at SOFR + 6% per annum; 5-year

final maturity.

* Proceeds intended to refinance existing indebtedness and

pay related fees and expenses.