Herter & Co. advises VDM Group on comprehensive realignment of its financing structure

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.

About VDM Metals

Headquartered in Werdohl, VDM Metals Group develops and manufacturers nickel, cobalt, and zirkonium alloys as well as special stainless steels. For more then 85 years, we deliver sheets, strips, bars, wires, and pre-material for tube production to our customers from the chemical process, energy, oil & gas, electronical engineering & electronics, and automotive & aerospace industries. VDM Metals employs more than 1,900 people globally.

About Lindsay Goldberg

Lindsay Goldberg is a private investment firm with approximately $14 billion of equity capital and in Europe is represented by Lindsay Goldberg Vogel GmbH, Düsseldorf. Lindsay Goldberg Vogel supports high growth "Mittelstand" companies with specialist advice and substantial financial resources in order to realize their full potential. Depending on the specific requirements of a situation, Lindsay Goldberg is able to provide growth capital as well as funds for the buy-out of existing ownership, including majority and minority stakes. The team at Lindsay Goldberg Vogel has long-term experience in the top-management of industrial and service companies, and focuses on value creation and a sustainable development of portfolio companies. This is documented by the corporate governance provisions of the Lindsay Goldberg funds, which allow for an ownership period of portfolio companies for up to 20 years.


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