Strategic Value Partners Provides €414m Refinancing for Celsa Poland

Strategic Value Partners, LLC and its affiliates (together, “SVP”), a global alternative investment firm with over $18bn of assets under management, today announced that its managed funds and other institutional investors have provided CELSA Huta Ostrowiec (“Celsa Poland“), the Polish subsidiary of Barna Steel, S.A. (“Celsa Group”), Europe’s leading company in the manufacture of circular and low-emission steel, with a €414m senior secured term loan facility (“Term Loan”) to facilitate a refinancing of its secured term loans due 2024 and 2025 (“Secured Term Loans”).

The proceeds from the Term Loan will be used to refinance the €392m in aggregate principal amount of Celsa Poland’s existing Secured Term Loans, provide a €16m dividend to Celsa Group, and to pay fees and expenses associated with the transactions.

Brian Himot, Head of Structured Capital at SVP, said: “This is exactly the kind of complex capital solution our investment, operating and capital markets teams are ideally placed to deliver. We are pleased to partner with Celsa Poland to execute in a very timely manner and to provide a refinancing that leaves the business well capitalized and strongly positioned for future growth.”

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Juan Veristain, CEO of Celsa Poland, said: “We are pleased to partner with SVP on securing a bespoke refinancing that provides us with a significant amount of certainty, flexibility and runway to take the business to the next level in Central and Eastern Europe. Amid a challenging macroeconomic environment, this transaction puts us in a strong position heading into 2024.”

Linklaters LLP acted as legal counsel to Celsa Poland. Houlihan Lokey Inc. acted as financial advisor and CMS and Kirkland & Ellis LLP as legal counsel to SVP.

Source: Yahoo! Finance

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