SVP Provides €414 million Refinancing to Recapitalize Celsa Poland

LONDON and GREENWICH, Conn., Dec. 13, 2023 /PRNewswire/ -- Strategic Value Partners, LLC and its affiliates (together, "SVP"), a global alternative investment firm with over $18 billion 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 €414 million 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 €392 million in aggregate principal amount of Celsa Poland's existing Secured Term Loans, provide a €16 million 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."

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.

About SVP

SVP is a global alternative investment firm that focuses on opportunistic credit, special situations, private equity and financing opportunities. The firm uses a combination of sourcing, financial and operational expertise to unlock value in its portfolio companies. Today SVP manages over $18 billion in assets under management, and since inception, has invested more than $45 billion of capital, including nearly $18 billion in Europe. The firm, established by Victor Khosla in 2001, has approximately 200 employees, including approximately 90 investment professionals, across its main offices in Greenwich (CT) and London, and a presence in Tokyo. Learn more at www.SVPGlobal.com.

About Celsa Group

CELSA Group is the first European producer of low-emission circular steel with the largest circular supply chain in Europe. It recycles ferrous scrap to produce steel in electric arc furnaces, using the most sustainable and energy-efficient technology.

The company is made up of 6 business groups and has 120 work centers, 7 steel mills, 12 rolling mills and 45 recycling plants, as well as transformation and distribution companies, which generate direct, indirect, and induced employment for more than 70,000 professionals. It is present in Spain, France, United Kingdom, Denmark, Finland, Norway, Poland, Italy, and Ireland.

The group works to solve the greatest systemic risks on the planet: the depletion of resources and the fight against climate change. To this end, it has set itself the objectives of reducing itsCO2 emissions by 50% and reaching 98% circularity by 2030 and completing its circularity and being a Net Positive company in 2050.

Media Contacts

SVP
North America
Kekst CNC
Todd Fogarty, Richard Goldman
svpglobal@kekstcnc.com
(212) 521-4800

Europe
Greenbrook Communications
James Madsen
svp@greenbrookpr.com  
+44 20 7952 2000

SOURCE Strategic Value Partners, LLC