NORWALK, Conn.--04 April 2011-- GE Capital, Corporate Finance today announced it is co-collateral agent on a $750 million asset-based credit facility for RG Steel, LLC, a flat-rolled steel producer and wholly owned subsidiary of The Renco Group, Inc. The loan will be used to support the acquisition of three steel companies from Severstal North America to form RG Steel, LLC. GE Capital Markets served as co-lead arranger.
Established in March, 2011, Sparrows Point, MD-based RG Steel, LLC will be the nation's fourth largest flat-rolled steel producer with the acquisition of Severstal Sparrows Point LLC, Severstal Warren Inc., Severstal Wheeling Inc., and Wheeling Corrugating Company. Based in NY, The Renco Group, Inc. is a privately-owned investment holding company with businesses worldwide including mining and mineral recovery, defense equipment, fabrication of metals products and automotive supply.
"GE Capital's steel industry expertise and firsthand knowledge of the companies we acquired was invaluable," said Ari Rennert, president of The Renco Group, Inc. "They understood our needs and provided us with a significant financial commitment to help us achieve our objectives."
"With years of experience financing steel companies, we can provide clients with insight in addition to capital," said Tom Quindlen, president and CEO of GE Capital, Corporate Finance. "Industry specialization leads to smart, flexible financing solutions to help clients succeed."
About GE Capital, Corporate Finance
GE Capital, Corporate Finance provides asset-based, cash flow and structured loans and leases to mid-size and large U.S. businesses. Financing supports working capital, growth, acquisitions, turnarounds and balance sheet optimization in key sectors: Aerospace and defense; automotive and transportation; chemicals and plastics; construction and building products, corporate aircraft; financial and business services; food, beverage and agribusiness; manufacturing; marine; metals and mining; paper, packaging and forest products; retail; and technology and electronics. With Access GE, clients also benefit from access to GE's best practices. Visit gelending.com/clnews.
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Ned Reynolds
GE Capital
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+1 203 2295717
+1 203 8370699
Jeff Wilson
GE Capital Corporate Finance
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1-203-749-6340