• Financing

FEUER powertrain Expansion of Financing Structure incl. ABCP Program

The Company

FEUER powertrain Group ("FPT"), headquartered in Nordhausen (Thuringia), is a leading global independent manufacturer of crankshafts for passenger car, truck, agricultural machinery and industrial engines, as well as the recreational vehicle (ATV, motorbikes, jet skis, sport boats, etc.) and compressor segments. Although much of the current business is based on internal combustion engine applications, there are still growth opportunities for FPT from an accelerated outsourcing trend and the further diversification of activities. 

FEUER powertrain currently operates a total of seven plants with highly automated, flexible production lines at the Nordhausen and Beuren locations (Germany) and in Tunica, Mississippi (USA).

The Transaction

FPT has successfully extended its existing working capital financing with an ABCP (Asset Backed Commercial Paper) program. An ABCP program is a framework agreement for the revolving sale of trade receivables, whereby the purchases of receivables are refinanced by the purchaser through the issuance of short-term, asset-backed bonds on the so-called "commercial paper" market. In addition to increasing liquidity and payment security, this also results in attractive financing costs for the company. The program, launched and managed by Commerzbank AG for FPT, comprises in the first step a volume of almost EUR 30 million via a EUR and a USD tranche and offers the company further financing flexibility for the planned growth in Germany as well as the already started production ramp-up in the new plant in the USA.

Scope of Mandate

ARGONAS acted as exclusive debt advisor to FPT in the financing process, providing full advisory and support on all transaction legs including the negotiation of the transaction documents.