GE Capital Creates US$500m Financing Structure to Support Alcan Acquisition
GE Capital, the financial arm of General Electric (GE), has underwritten US$500m of European factoring and US asset-based lending (ABL) facilities to support the future working capital requirements of Alcan Engineered Products (AEP), an aluminium products manufacturer. The financing supports the new joint venture company to be created by Apollo Management, Fonds Stratégique d’Investissement’s (FSI) and AEP’s current owner Rio Tinto.
The financing includes a €300m accounts receivable (A/R) facility in France, Germany and Switzerland, and a US$100m ABL 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 recapitalisation of AEP by Apollo, and FSI,” said Richard Laxer, president and chief executive officer (CEO) of GE Capital in Europe, Middle East and Africa (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.”