German automotive supplier Benteler has struck a four-year amend-and-extend deal with its lenders and expects to receive a new €225 million credit line from its banks, sources told Reorg.
Lenders will get an uplift in interest payments in exchange for the maturity extension. The deal means the company will have no maturities for the next four years and can focus on operational improvements.
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The company has granted securities to about €1 billion, or just under half, of its €2 billion debt, while the capital structure was previously unsecured, sources said.
Benteler worked with Rothschild as financial advisor alongside Ashurst as legal counsel. The company’s bank lenders are assisted by Latham & Watkins. Law firm Dentons acted for the
Schuldschein creditors, while the shareholders worked with Allen & Overy and Houlihan Lokey.
The company received a positive restructuring opinion according to the German IDW S6 standard from PwC.
Benteler makes components for engines, bodies, chassis and exhaust systems and operates 70 plants in 25 countries. It is organized in three independent divisions: Benteler Automotive, Benteler Steel/Tube and Benteler Distribution. Benteler Steel/Tube develops and produces seamless and welded steel tubes and develops customized tube solutions for the automotive, energy and industry market segments. Its customers include almost all major vehicle manufacturers.
The common stock is closely held by the Benteler family, half through Hubertus Benteler of Salzburg, Austria, and half through Ing. E.h. Helmut Benteler of Paderborn, Germany.
-- Aurelia Seidlhofer