Milbank Advises on Benteler International AG’s Inaugural €975M (Equivalent) High-Yield Bond Offering and €810M Term Loan to Achieve Landmark Long-Term Refinancing

Milbank LLP represented the initial purchasers and lenders in connection with the debut offering by Benteler International AG (“Benteler”) of €525 million 9.375% senior secured notes due 2028 and $500 million 10.500% senior secured notes due 2028, in parallel to the provision of an €810 million term loan and a €250 million revolving credit facility. The net proceeds of the bond offering and drawings under the term loan will be used to refinance the entirety of Benteler’s existing restructuring indebtedness.

Headquartered in Salzburg, Austria, Benteler is a global business engaged in the design and manufacturing of highly engineered, tailor-made components and modules for the global automotive industry (including in the area of e-mobility) as well as welded and seamless steel tube solutions for the industrial, automotive and energy sectors. This transaction is a milestone for Benteler, as it formally marks the success of Benteler’s transformation following its debt restructuring in 2020, two years earlier than initially planned.

The transaction was led by a combined finance and capital markets Milbank team across London and Munich, including partners Barbara Mayer-Trautmann, Randy Nahlé and Apostolos Gkoutzinis, special counsel Jennifer Seipelt, associates Maria C. Schweinberger, Alexander Lang, Lefteris Dafermos, Santiago Barraza, Ludwig Reißmann and Giulia Musmeci, and Panos Tsezos. Associates Melanie Probst, Dr. J. Melchior Raiser and Suktika Banerjee assisted the team on the transaction. New York-based Leveraged Finance partner Michael Bellucci and associate Nicole Rose, New York-based Tax partner Eschi Rahimi-Laridjani, special counsel Craig Cohen and associate Howie Perlman, Munich-based Tax partner Thomas Kleinheisterkamp and associate Elisabeth Wöhrle, and London-based Tax partner Russell Jacobs and special counsel Andrew Callaghan also assisted the team.