White Oak ABL, White Oak Commercial Finance and other affiliates of White Oak Global Advisors closed a three-year, $287.5 million senior secured credit facility with Majestic Steel USA, a Midwest-based distributor and value-added service provider of flat-rolled steel products with operations throughout the United States, acting as sole arranger and bookrunner.
The credit facility consists of a $212.5 million asset based revolving line of credit and term loan funded by White Oak Commercial Finance, White Oak ABL and Eclipse Business Capital and a $75 million term loan funded by Stonebriar Commercial Finance. The proceeds were used to support the company’s refinancing of its existing bank debt, support working capital growth and to finance the completion of the company’s world-class, state-of-art distribution and processing facility located in Blytheville, AR.
“White Oak’s in-depth understanding of the metals space, combined with its speed and certainty of execution, provided a perfect fit for this financing opportunity,” Mark Smith, managing director at White Oak Commercial Finance, said. “Our ability to underwrite and arrange large, complex transactions and deliver creative structuring options to maximize borrowing capacity played a critical role in being selected to lead and close this transaction.”
“We have great respect for Majestic Steel’s leadership team and are thrilled to have partnered with everyone in this transaction,” Tom Otte, head of White Oak’s asset-based lending, said.
“We are excited to put this financing to work. Majestic Steel is now well positioned to continue its growth plan and ramp up operations at our new facility in Blytheville,” Todd Leebow, CEO of Majestic Steel, said. “White Oak acted as a highly supportive and flexible counterparty, and we would welcome the opportunity to work with them in the future.”
