Herter & Co. has advised VDM Metals Group (“VDM Metals”), one of the leading producers of nickel alloys headquartered in Werdohl on the refinancing of its existing financing facility.
The new financing package consists of an unsecured revolving credit facility, a term loan, as well as a newly introduced factoring program for a total volume of €280m. The €150m revolving credit facility is provided by a bank consortium including DEUTSCHE BANK AG, UNICREDIT BANK AG (both Bookrunner), HSBC TRINKAUS & BURKHARDT AG, LANDESBANK BADEN-WÜRTTEMBERG and LANDESBANK HESSEN-THÜRINGEN GIROZENTRALE. The factoring facility is made available by POSTBANK, while IKB DEUTSCHE INDUSTRIEBANK AG has provided the term loan.
Proceeds of the transaction were used to repay in full the acquisition financing put in place during the buy-out of VDM Metals by the current owner, private equity firm Lindsay Goldberg, as well as the refinancing of shareholder loans. The new financing structure gives VDM Metals financing security for the next years and comes with substantial cost savings.
“The refinancing of our existing credit facility with a new package composed of 3 separate facilities was a challenge, which we could not have handled in such a short time without the help of Herter & Co. We are pleased with the excellent outcome.”, said Andrea Bauer, CFO of VDM Metals.
Herter & Co. acted as Sole Debt Advisor to VDM Metals.