InfraBuild seeks Liberty assets in US

InfraBuild, a business unit of the United Kingdom-based GFG Alliance, has closed on a $350 million asset-backed term loan led by funds and accounts managed by BlackRock and Silver Point Finance.

Electric arc furnace (EAF) mill operator InfraBuild, based in Australia, says it has maintained its strong financial performance through the first three quarters of its 2023 fiscal year, a status that could put it in a better position to manage EAF assets in the United States that currently are part of the Liberty Steel GFG business unit.

InfraBuild says the proceeds of the term loan will enable it to pursue its growth objectives, including its potential acquisition of steel assets in the U.S. currently owned by GFG Alliance. It adds that it is continuing to explore additional financing pathways to keep the potential U.S. asset purchase on track.

The firm lists Peoria, Illinois-based Keystone Consolidated Industries (KCI) as a targeted asset, which operates an EAF melt shop, rolling mill and wire mill in that city, as well as mesh manufacturing sites under the Engineered Wire Products name in Ohio and New Mexico.

Also on the potential shopping list is Johnstown Wire Technologies, which has plants in Ohio and Pennsylvania and the Georgetown steelworks in South Carolina, where the EAF melt shop has been idle for several years.

"This financing provides strategic capital to InfraBuild, which will enable us to continue to grow our business and service a customer base which spans the infrastructure, commercial and residential construction, agriculture and mining markets," InfraBuild interim CEO and Managing Director Dak Patel says.

"The business has continued to perform strongly throughout this financial year and the asset-backed term loan provides us with capital to focus on strategic initiatives to strengthen operations and capitalize on the growing demand for lower carbon sustainable steel as we continue the momentum we’ve built in recent years."

InfraBuild is a vertically integrated steel long products manufacturer with two scrap-fed EAF steel mills, plus scrap recycling, steel products manufacturing and distribution operations throughout Australia.

In the term loan transaction, New York-based Jefferies LLC acted as sole arranger of the loan, according to Infrabuild.