International syndicated loan for dynamic recycling company
7. July 2019
Operating within the recycling sector, this group of companies generates revenues of around €160 million and has plants in Germany, Belgium, Spain and the United States, where it processes a variety of plastic waste, from easy to recycle industrial waste to more challenging domestic recyclables. The recycled materials are used to manufacture a wide range of products, including plastic pallets, industrial containers and components for construction sites and gardens. The group not only manufactures and sells, it also develops recycling equipment and holds the corresponding patents.
DUKAP advised this dynamic group of companies on preparing and implementing the fundamental reorganisation and expansion of its debt structure. The central element of the new group financing is a syndicated loan of €75 million, which was arranged by DUKAP and generated a strong response from domestic and foreign banks.
The new long-term financing is designed to enable the group to implement its ambitious growth plans and provide financial security for its subsidiaries. In addition to the €75 million syndicated loan for cash and guarantee drawdowns, which can be disbursed in a range of currencies, the new facilities also include options for off-balance sheet financing. In the course of the restructuring, the costs of the financing were significantly reduced, the workload of the company’s treasury department was streamlined and previously agreed loan covenant restrictions were lifted.
DUKAP supported the group in identifying needs, developing the financing structure, approaching suitable international financing providers, evaluating offers and negotiating loans until successful completion.