Strategic Value Partners Co-leads €600m Investment in Celsa

LONDON, Dec. 10, 2025 /PRNewswire/ -- Celsa, one of the largest green long steel producers in Europe, has announced the successful completion of its refinancing. As part of the transaction, Celsa is issuing €600m of HoldCo PIK notes, co-led by funds managed by Strategic Value Partners, LLC and its affiliates (together, "SVP"), alongside a €1.2bn issuance of senior secured bonds. Terms of the transaction were not disclosed.

Celsa has production facilities in Spain, France and Poland that use Electric Arc Furnaces ("EAF") that enable 94% of materials used in production to be recycled, with a waste recovery rate of 98%. This sustainable approach along, with its vertical integration into scrap sourcing and downstream activities, means that Celsa can produce steel with c.20% of the CO² emissions of its competitors. Celsa's low-emission approach is expected to create a competitive advantage for the firm ahead of anticipated European Union changes that will reduce free CO² allowances for European industrial producers as of January 1, 2026.

"The completion of our debt refinancing marks the final milestone in the operational and financial transformation we began in 2023," said Jordi Cazorla, CEO of Celsa Group. "We are entering a favourable environment and are now able to capitalize on the positive market and expected regulatory developments in the near term. The continued support of our shareholders and financing partners remains invaluable throughout this journey."

SVP co-led the financial restructuring of Celsa in 2022 and subsequently became a significant minority shareholder. Since then, Celsa, under a new management team, board and shareholder base, has successfully completed a financial and operational turnaround, with shareholders contributing more than €900m of equity to facilitate the development of a comprehensive value-creation plan and complete the refinancing of the company.

"SVP is delighted to be able to support Celsa's successful refinancing," said Álvaro Fabián, Managing Director, European Investment Team at SVP. "We have been proud to be a strong partner with Jordi and his team over the last two years, overhauling Celsa's operations so that it is outperforming our original value creation plan. The business is now well positioned to take advantage of significant tailwinds in the coming years including the positive outlook for one of its main markets, construction, that will present an opportunity to strengthen its financial performance."

Celsa generated sales of €3,352m and Adjusted EBITDA of €451m in the twelve months to September 2025 and employs 5,232 people. Looking ahead, SVP believes that a number of factors will continue to strengthen Celsa's financial performance, in particular:

• The delivery of a comprehensive and well-advanced value-creation plan looking to provide cost and revenue enhancements.
• The recent announcement by the European Union of a proposal to reduce steel import quotas into the EU by 47% and to double tariffs above quota levels from 25% to 50%, which is expected to increase utilization for EU producers and positively impact steel margins.
• A positive outlook for the construction industry in Celsa's main markets. Construction represents 85% of Celsa's end sales and is expected to grow by 3.4% in Spain and 5.2% annually in Poland between 2024 and 2027.

About Strategic Value Partners

SVP is a global alternative investment firm that focuses on special situations, private equity, opportunistic credit and financing opportunities. The firm uses a combination of sourcing, financial and operational expertise to unlock value in its portfolio companies. Today SVP manages approximately $22bn in assets under management and, since inception, has invested more than $57bn of capital. Established by Victor Khosla in 2001, the firm has over 200 employees, including more than 100 investment professionals, across its main offices in Greenwich (CT), New York and London, with presence in Tokyo and Dubai. Learn more at www.svpglobal.com.

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SOURCE Strategic Value Partners