Steelbanc closes $42M senior secured facility for Wisconsin foundry group.

Steelbanc Holdings, Inc. announced today the closing of a $42 million senior secured credit facility with a privately-held foundry group operating two mid-sized melt-shop facilities in Wisconsin. The facility refinances the borrower’s existing senior debt with a money-center bank and funds a previously-announced capital program to modernize induction furnaces and downstream casting lines at both plants.

The five-year facility is fully amortizing and secured by a first lien on equipment, real property, and a customary collateral package across the borrower’s receivables and inventory. Steelbanc is sole lender and will hold 100 percent of the facility on its balance sheet.

“Steelbanc understood our equipment, our customers, and our cycle. That is not always the case with our lenders,” said the chief financial officer of the borrower, who asked not to be named in advance of the company’s own communications to its customers.

The transaction is Steelbanc’s largest single facility to date and brings the firm’s committed capital in the metals sector to approximately $128 million.