Wise Metals Group has signed a new financing arrangement that allows the firm to refinance current loans and provides additional working capital, officials announced today.
Wise Metals Group includes Wise Recycling and Wise Alloys. Wise Alloys is the third leading U.S. producer of aluminum can stock for the beverage and food industries. “The multi-million dollar arrangement reflects the strength of one of the nation’s leading can stock manufacturers,” said David D’Addario, Wise Metals’ chairman.
The financing arrangement consists of senior and subordinated debt, according to Danny Mendelson, the firm’s CFO. It provides “the long-term financing and cash availability consistent with an $800-plus million manufacturing company,” he said.
Congress Financial Corporation and Fleet Capital Corp. are the lead banks for the senior debt, which consists of a $130 million revolver loan due Sept. 5, 2005, and a $30 million term loan, also due on Sept. 5, 2005. Additionally, the Prudential Capital Group is providing the $35 million in senior secured subordinated notes due Sept. 5, 2009. The notes are fully secured and contain terms in accordance with current market conditions.
“This is financing that was not available when the company was founded in ear1y 1999,” said John Cameron, president and CEO of Wise Alloys.
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