London, 9th August 2010: GE Capital, the financial arm of GE, has underwritten $500 million of European factoring and US ABL facilities to support the future working capital requirements of Alcan Engineered Products ("AEP"), a leading global aluminium products manufacturer. The financing supports the new joint venture company to be created by Apollo Management LP ("Apollo"), Fonds Stratégique d'Investissement's ("FSI") and AEP's current owner Rio Tinto plc.
The financing includes a €300 million accounts receivable (factoring) facility in France, Germany and Switzerland, and a $100 million asset-based lending arrangement in the US. The structure is both flexible and scalable, enabling AEP to optimise cash management and enhance its liquidity.
"The ability for one financial institution to structure and underwrite 100% of the required working capital facilities was critical in the recapitalization of AEP by Apollo, and FSI," explained Richard Laxer, President and CEO of GE Capital in EMEA. "This is a complex transaction and required us to deliver an integrated working capital solution across Europe and North America. Very few businesses have the scale, technology or capability to provide such a large cross-border solution and we are delighted to be able to assist Apollo, FSI and Rio Tinto in the creation of this joint venture."
GE Capital is one of the world's largest providers of working capital and accounts receivable financing. In Europe alone, GE Capital has provided more than $500 billion in accounts receivable financing in the form of factoring over the past 10 years. In addition, GE Capital has a significant and growing sponsor finance business in Europe and has market leadership positions in the US, enabling the company to structure a truly bespoke solution to the customer.
"As lending volume continues to be challenged by some traditional lenders we are seeing more and more businesses turning to accounts receivable financing to increase working capital and cash management facilities," continued Richard Laxer. "Not only do these facilities keep traditional bank lines open, they ensure cash is not locked up in inventory or invoices and can be better deployed. We will continue to execute on financings of this nature where our scale and product expertise can provide a differentiated service to our customers."
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For further information please contact:
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Michael Goodbody Media Relations Director, EMEA +44 207 302 6269 |
William Spiers
Head of Communications, EMEA
+44 207 302 6454
Notes to editors
About GE Capital
GE Capital is a leading provider of specialist finance throughout the EMEA region, providing a wide range of solutions including: accounts receivable management, inventory finance, ABL, cross-border financing, leveraged finance, European leasing/vendor finance and fleet management. GE Capital focuses on sectors where it can share GE's 130+ year heritage with customers - energy, healthcare, media, transportation and industrial - and has a major footprint in EMEA, including the $8 billion commercial finance joint venture with Mubadala in Abu Dhabi.
Ned Reynolds
GE Capital
[email protected]
+1 203 2295717
+1 203 8370699
Will Spiers
Michael Goodbody
GE Capital EMEA
[email protected]
+44-207-302-6269
+44-7899-808-239