InfraBuild Australia Pty, part of Sanjeev Gupta's metals empire, has secured a $350 million asset-backed term loan to facilitate the acquisition of steel assets in the US. The lender mentioned that the proceeds of the loan will support its growth objectives and that it was exploring additional financing alternatives to combine with the loan to facilitate more acquisitions in the US.
The potential deal to acquire Gupta's GFG Alliance steel assets comes as part of Gupta's efforts to restructure his metals empire, following the demise of his top lender, Greensill Capital. In March, Gupta took ownership of Simec Group Ltd from his father, and in April, he hired ex-banker Neil Cabral to head up his personal investment firm.
Jefferies LLC arranged the new loan, and funds and accounts managed by BlackRock Inc. and Silver Point Finance LLC led the financing deal. InfraBuild had an identical loan arranged by JPMorgan last year, which was paid off in full.
The potential acquisitions include GFG steel-related assets in Ohio, Illinois, New Mexico, Pennsylvania, and South Carolina. InfraBuild is exploring additional financing options that can be combined with the loan to drive growth and facilitate more acquisitions in the US.
The financing deal indicates InfraBuild's commitment to expanding its footprint in America. Acquiring GFG steel assets in multiple states of the US will give InfraBuild access to previously untapped markets, generate revenue streams, and improve operational efficiency through economies of scale.
In conclusion, the asset-backed term loan arrangement is an excellent example of strategic financial management that allows businesses to pursue their goals effectively. It will be interesting to see how InfraBuild leverages the new financing to connect with American markets and realize its growth objectives.