Media Type: InfraBuild

• InfraBuild closes a USD350m Asset-Backed Term Loan led by funds and accounts managed by BlackRock and Silver Point Finance.
• The InfraBuild business has maintained its strong financial performance through the first three quarters of its 2023 fiscal year.

InfraBuild has today announced the closing of a USD350 million Asset-Backed Term Loan, the proceeds of which will enable the business to pursue its growth objectives, including its potential  acquisition of steel assets in the United States currently owned by  GFG Alliance.

InfraBuild has maintained its strong financial performance through the first three quarters of its 2023 fiscal year and the successful financing is an important achievement to facilitate the continued growth of the business.

InfraBuild is Australia’s largest vertically integrated steel long manufacturer with recycling, manufacturing and distribution operations across the country.

InfraBuild is continuing to explore various additional financing alternatives, the proceeds of which would be used together with Asset-Backed Term Loan proceeds, to further drive its growth and potential acquisition of steel assets in the US.

Jefferies LLC acted as sole arranger on the Asset-Backed Term Loan, which was led by funds and accounts managed by BlackRock and Silver Point Finance.

InfraBuild Interim CEO and Managing Director Dak Patel said:

“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,” Mr Patel said.

“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 capitalise on the growing demand for lower carbon sustainable steel as we continue the momentum we’ve built in recent years.”

Notes:

• *The potential acquisition includes:
  • Keystone Consolidated Industries (KCI), comprising an Electric Arc Furnace (EAF), rolling mill and wire mill at Steel and Wire (Peoria), mesh manufacturing sites from Engineered Wire Products (Ohio and New Mexico)
  • Johnstown Wire Technologies (Pennsylvania and Ohio)
  • Georgetown steelworks (South Carolina)

Media Contacts

Matt Johnston – Head of Communications and Brand Australia – 0438 294 377 or matt.johnston@gfgalliance.com

David Ollier – Global Head of Communications – (UK) +44 7850018553
(UAE) +971 501407382 or David.Ollier@gfgalliance.com

The Australian Reinforcing Company (ARC), responsible for supplying steel used to construct international landmarks including the Sydney Harbour Bridge and Opera House, celebrates a century of continuous manufacturing in Australia, today.

“This is an exciting achievement for both ARC and Australian manufacturing, and I couldn’t be prouder of its rich history in providing quality Australian steel for Australian businesses and projects,” said Dak Patel CEO of InfraBuild, ARC’s parent company.

“What many people wouldn’t know is that ARC steel surrounds us – it’s in the roads we drive on, the houses we live in, the buildings we work in, the schools our kids learn in and the iconic landmarks that symbolise Australia to the rest of the world.

“Over the years ARC has supplied the steel used to build many Australian icons such as the Sydney Harbour Bridge, the Sydney Harbour Tunnel, the Opera House, the MCG and Marvel Stadium in Melbourne, the Sydney and Melbourne Airports, Victoria Bridge in Brisbane and Parliament House in Canberra.”

ARC was formed from the British Reinforced Concrete Engineering Co. Ltd. (B.R.C.) and in 1920, purchased land along Ballarat Road in Sunshine where it became the first Australian manufacturer to produce fabricated steel mesh (where the manufacture of quality steel products continues to this day).

ARC was also heavily involved in World War ll, with 98% of the company’s output dedicated to the war effort. Australian, British and American forces were using steel mesh and reinforcing on suspension bridges, water tanks, aircraft runways, ground cover and boats.

“The smooth transition of ARC to InfraBuild, as the custodian of this great brand, has been well assisted by having the former CEO Ray Horsburgh AM as a current Director on the InfraBuild Board,” Mr Patel said. “I want to congratulate the ARC team both past and present for this incredible milestone of reaching 100 years and wish it all the best for the next 100 years.”

Visit the LIBERTY Steel Group for the full media release

GFG Alliance Executive Chairman Sanjeev Gupta recorded a message for ARC employees to celebrate the 100 year milestone

Infrabuild Wire, a member of the GFG Alliance, is celebrating 100 years of continuous manufacturing today with senior business and government leaders coming together to mark the occasion.

Executive Chairman of GFG Alliance Sanjeev Gupta said: “Today is an exciting day to acknowledge the proud history of this site.

“Generations of proud Newcastle steelmakers and local community have contributed to the success of this business, passing down their skills from parent to child, from master to apprentice.

“As a member of GFG Alliance for the last two years, it has become apparent to me the passion the team has for producing high quality products that Australians use every day.

“This facility has produced wire to help protect Australia, from producing barbed wire for Allied forces in World War I to the anti-submarine nets lining Sydney Harbour during World War II.

“It has also helped to build Australia. New South Wales’ tallest building, Sydney Tower, is supported by hundreds of metres of roping wire manufactured right here.

“I want to congratulate the InfraBuild wire team for this incredible milestone of reaching 100 years and wish it all the best for the next 100 years,” Mr Gupta said.

InfraBuild Chief Executive Officer Daksesh Patel said: “We are proud to protect the heritage and nourish the ongoing development of steel manufacturing in Newcastle that provides Australian steel for Australian businesses and projects.

“Our steel comes from GFG’s steel mills around Australia and then manufactured to exacting specifications on site.

“InfraBuild wire has over 300 dedicated employees that help us achieve this every day with many of them having been with the company for over 20 years.

“InfraBuild Wire is part of the broader InfraBuild business that includes over 1,200 employees within Newcastle. We also have a further 1,000 contractors from around the Hunter region that help us to deliver for our customers.

About InfraBuild

Proudly celebrating 100 years of continuous manufacturing at the Mayfield site in Newcastle – INFRABUILD WIRE is a fully integrated wire manufacturer producing products from the upstream businesses of the greater INFRABUILD group, from the processing of recycled steel in the Sydney electric arc furnace, to the rolling of Steel Rod on the Mayfield campus to the wire and fencing products used every day across Australia. INFRABUILD WIRE continues to lead in research and innovation, with products that are recognised globally for quality and reliability. INFRABUILD wire can be found in mattresses, cars, fencing, coat hangers and in numerous products. INFRABUILD is the only Australian manufacturer of bright and coated steel wire in Australia.

About GFG Alliance

Liberty Steel is part of the GFG Alliance; a global group of energy, mining, metals, engineering, logistics and financial services businesses, headquartered in London, with additional hubs in Dubai, Hong Kong, New York, Paris, Singapore and Sydney and a presence in around 30 countries worldwide. The Alliance, which has a global workforce of around 35,000 people and a turnover exceeding US$20 billion, comprises integrated industrials and metals businesses under the “Liberty” banner; a resources, energy, transportation and infrastructure group under “SIMEC”; Wyelands; a banking and financial services arm, as well as its property arm, JAHAMA.

InfraBuild Australia Pty Ltd (the “Company”), an Australian company and a member of the GFG Alliance (“GFG”), and a direct wholly-owned subsidiary of Liberty InfraBuild Ltd (“InfraBuild”) today announced that it has priced an aggregate principal amount of US$325 million of 12.0% Senior Secured Notes due 2024 (the “Notes”).

The Notes will be guaranteed (the “Guarantees”) on a senior secured basis by InfraBuild and certain of its existing and future direct and indirect subsidiaries. The Company intends to use the net proceeds from the offering to refinance certain of its indebtedness and any remainder for general corporate purposes.

In connection with the offering of the Notes, and as part of a broader refinancing, GFG’s chairman, Sanjeev Gupta, has committed to contribute equity into the Company in the form of cash in an amount of US$150 million (the “Equity Contribution”). The Equity Contribution is conditioned on the consummation of the offering of the Notes, and the offering of the Notes is conditioned on the Equity Contribution. In addition, the Company expects to establish an asset-backed loan facility (“ABL”) concurrently with the consummation of the offering of the Notes, in the commitment amount of A$250 million. The ABL is conditioned upon the consummation of the offering of the Notes.

The Notes and the Guarantees will be offered only to persons reasonably believed to be qualified institutional buyers, pursuant to Rule 144A under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and to certain persons outside the United States in offshore transactions in reliance on Regulation S under the Securities Act.

This press release does not constitute an offer to sell, or the solicitation of any offer to buy, the Notes or any other securities. Any offer of the Notes will be made only by means of a private offering memorandum. The Notes and the Guarantees are not being registered under the Securities Act nor the securities laws of Australia nor any other jurisdiction. The Notes and the Guarantees may not be offered nor sold in the United States without registration under the Securities Act or an applicable exemption from such registration requirements.