Wells Fargo Capital Finance and Great American Capital Partners (GACP) have entered into an agreement with Scrap Metal Services (SMS) to provide a $63 million senior secured credit facility. Wells Fargo led the financing, which consists of a $40 million asset-based revolving credit facility provided by Wells Fargo and a $23.27 million term loan facility provided jointly by Wells Fargo and GACP.

“SMS is a reputable company with a strong management team supporting it,” said Jeremy Baker, managing director of Loan Originations, Wells Fargo. “We are pleased to have been a part of this transaction and look forward to supporting SMS in their future business endeavors.”

“The SMS management team has achieved a remarkable track record in building and operating companies in the dynamic scrap metals market,” said John Ahn, president of GACP. “Our unique institutional knowledge and familiarity with the company’s asset base — qualifications that differentiated us from other lenders — allowed us to confidently structure and execute this transaction.”

Los Angeles-based SMS is a provider of scrap management and brokerage services for ferrous and nonferrous scrap suppliers and consumers. SMS’s decision to move its entire senior credit facility to a new lender is part of its ongoing efforts to ensure its viability in one of the most challenging scrap metal markets in years.