January 2014

ARGONAS advises FEUER powertrain on EUR 146mn finance package comprising syndicated loan and private placement

FEUER powertrain, European market leader for the OEM-independent production of crankshafts continues its strong growth and plans both the expansion of its production capacities at its headquarter in Nordhausen, Thuringia, Germany, as well as the launch of its first overseas operations in the USA.

In order to finance the next growth phase, FEUER powertrain has substantially expanded its financing structure while at the same time putting it on a new sustainable long-term basis.

Key element of the new financing structure is a new syndicated loan in the amount of EUR 126 million across five tranches. The new syndicated loan is supplemented by a EUR 20 million long-term private placement with Pricoa Capital Group, the investment arm of US-insurance group Prudential Financial Inc. The funds provided by both transactions are used to finance the planned investments in Germany and the US, the working capital across both locations as well as to refinance existing syndicated and bilateral financial liabilities.

On both the overall financing solution as well as the individual finance transactions FEUER powertrain was advised by ARGONAS as independent corporate finance advisor – ARGONAS further initiated the private placement with Pricoa Capital Group.

press release (PDF)