GFG Alliance secures $460 million in funding for Australia growth

GFG Alliance, headquartered in London, has announced it has secured two new credit lines worth A$650 million (nearly $460 million) for working capital and planned growth opportunities in Australia. The Liberty House operating unit of the GFG Alliance includes Liberty Steel, Liberty Aluminum and Liberty Recycling, which operate mills, scrap yards and trading offices in Australia, the United Kingdom, Europe and North America.

GFG has entered into an agreement with financing partners White Oak Global Advisors, headquartered in San Francisco, and London-based Greensill Capital.

"The execution of these facilities marks an important step in our strategic plans to source new committed capital for the businesses," says GFG Alliance Executive Chairman and CEO Sanjeev Gupta. "It provides us with additional support to take full advantage of the growth opportunities that we currently see in the Australian domestic market.”

In 2017, GFG Alliance acquired Australia’s Arrium, which had been troubled with debt. The acquisition included Whyalla Steelworks in South Australia and smaller steel mills. In December, GFG also announced the purchase of Rio Tinto’s Aluminium Dunkerque smelter in France for $500 million, expanding its European footprint.

White Oak will offer what GFG calls a secured term syndicated borrowing base facility agreement and Greensill will offer a secured revolving credit facility and supply chain financing facility. The funds will be used for working capital and planned growth. GFG had previously stated plans to create an initial public offering (IPO) comprised of up to 40 percent of its manufacturing, distribution and recycling businesses in Australia in 2019.