Heuking Kühn Lüer Wojtek advises FEUER powertrain on EUR 146 million financing package
Heuking Kühn Lüer Wojtek advised FEUER Powertrain GmbH & Co. KG, European market leader for OEM-independent crankshaft production, on the financing of its further expansion in Germany and in the USA.
Key element of the financing structure is a new syndicated loan in the amount of EUR 126 million across five tranches. Apart from a refinancing tranche for the former syndicated loan, the new syndicated loan package comprises tranches for the investments in the planned growth both in Germany and in the USA plus a revolving credit line structured as a “borrowing base financing”. The syndicated loan was provided by the existing group lenders Commerzbank, HSH Nordbank, NORD/LB and Postbank. In addition, it was also possible to get KfW on board as financing and re-financing partner for the transaction due to the increase in energy-efficiency as a result of the planned investments. For the financing transaction which was implemented as a “Club Deal”, Commerzbank and HSH Nordbank acted as Arrangers, Commerzbank in addition as Bookrunner and Documentation, Security und Facility Agent. The new syndicated loan is supplemented by a EUR 20 million long term private placement with Pricoa Capital Group, the investment arm of the US-american insurance group Prudential Financial Inc. Through these measures, FEUER powertrain was able to substantially expand its financing structure on a new sustainable long term basis with the support of ARGONAS as independent corporate finance adviser and Heuking Kühn Lüer Wojtek as legal adviser.
FEUER powertrain continues its strong growth and plans to expand its production capacities at its headquarter facilities in Nordhausen, Thuringia, Germany, as well as the start of its first overseas site in the USA. After the implementation of the upcoming investments, the total annual capacity of the Group will reach more than 2.5 million crankshafts per year with a total of nine highly automated production lines by which FEUER powertrain will further expands its leading position as a supplier of a broad range of engine manufacturers. Among the renowned customers of FEUER powertrain are, e.g., AGCO, BMW, Chrysler, Cummins, Ferrari, GM, Jaguar, JCB, Liebherr, MAN, MTU and Volkswagen-Group.
Legal Adviser FEUER powertrain
Heuking Kühn Lüer Wojtek
Michael Neises (Financing Law, lead)
Dr. Christoph Gringel (Banking Supervision Law)
Klaus Weinand-Härer (Tax)
Dr. Guido Hoffmann (Financing Law)
Carolin Borst (Financing Law), all Frankfurt.