BREAL Zeta CF delivers term loan to strengthen MBO deal for Steel Plate & Sections and Stemcor Special Steels
BREAL Zeta CF - 27 September 2017
BREAL Zeta CF has provided Term Loan funding to complete the management buy out for Steel Plate & Sections and Stemcor Special Steels, alongside Leumi ABL facilities and shareholder subordinated loan capital introduced.
The total transaction comprised the full ABL suite, including accounts receivable and inventory revolvers in addition to plant and machinery and property term loans. BREAL Group has taken a 30% equity stake in the business and acted in a debt advisory capacity. The Management Buy Out was led by chief executive, Andrew Jones.
Sutton Coldfield-based Steel Plate & Sections has over 40 years’ experience of meeting the needs of offshore fabrication, pressure vessel and boiler manufacture, construction, materials handling equipment manufacture, bridge building, shipbuilding and repair, civil and general engineering and other industries throughout the world.
Stemcor Special Steels is the number one Nickel Alloy distributor worldwide and serves the oil, gas and petrochemical industries. The business has fully stocked depots managed by experienced oil industry professionals in the United Kingdom, Singapore, Dubai and Houston.
Mick Welden, Director at BREAL Zeta CF Limited, comments: “Now that the restructuring is well underway, the business is set to flourish in its own right, outside of the confines of a group structure.”
He continued: “Timing was critical in respect of this transaction and It was imperative to complete within a 4-week window. Since speed of execution was pivotal to the deal, BREAL Zeta CF acted quickly to put the term lending into place. BREAL Consulting leveraged its understanding of the market and its breadth of relationships in the asset based lending industry to select the appropriate funder and introduced Leumi ABL to deliver the revolver facilities to meet the tight timeframes required.”
“This really is a true BREAL deal from the outset, from the Term Lending supplied by BREAL Zeta to the debt advisory piece provided by BREAL Consulting, involving the structuring of the transaction, the introduction of Leumi ABL and investment within the business. We were delighted to work closely with a very capable and experienced management team to support them in delivering a clear vision for the business to build its credit worthiness, further strengthen its supply-chain relationships and drive aggressive growth once again.