AlixPartners, the global business advisory firm, announces that it has advised British Steel (“British Steel” or the “Group”), the £1.4bn turnover UK-based steel manufacturer, on the raising of £90 million of asset-backed financing from White Oak Global Advisors LLC, the San Francisco-based credit fund. The new senior secured facility is the first major FILO (“first-in, last-out”) facility in the European asset-backed debt markets.
In June 2016, Greybull Capital LLP, the family-office investor, acquired the long products steel division of Tata Steel Europe and rebranded it British Steel. At the time, AlixPartners advised on raising a £175 million asset-backed financing facility to provide the company with sufficient working capital. AlixPartners also provided general acquisition support advice.
Since then, the Group has completed the first phase of a successful turnaround programme, resulting in profitability increasing from a £80 million run-rate EBITDA loss pre-transaction, to an EBITDA profit of £47 million in FY17A (the first financial year post-Acquisition) and an adjusted EBITDA profit of £68 million in FY18A.
British Steel’s Board has over 120 years of combined experience and is well-placed to drive the next phase of growth. The new facility will provide flexibility for the Group to pursue significant investment opportunities in the future.
Roland Junck, Executive Chairman of British Steel, commented:
“We’re really pleased AlixPartners is continuing to support the rapid transformation of our business. British Steel is embarking on a period of unprecedented investment and this partnership will enable us to further grow our company.”
Jacco Brouwer, Head of Debt Advisory for AlixPartners in London, commented:
“We are delighted to have been able to advise British Steel on the raising of further financing facilities that will boost the company’s liquidity and position it for further growth through add-on acquisitions and expansion capital expenditure.”
Sam Hancock, Greybull Capital LLP, commented:
“We are pleased to have secured this new investment in British Steel which speaks strongly to the company’s turnaround over the past few years and positions it well for future growth.”
Sourced from Alix Partners