Superior Industries plans $550 million in loans, $260 million notes

By Sara Rosenberg

New York, March 23 – Superior Industries International Inc. expects to get a $550 million credit facility and issue $260 million in senior unsecured notes to help fund its acquisition of Uniwheels AG, according to a news release.

Citibank, JPMorgan, Royal Bank of Canada and Deutsche Bank are providing the debt financing.

The credit facility consists of a $150 million revolving credit facility and a $400 million senior secured term loan B.

Other funds for the transaction will come from $150 million of preferred equity, split between $100 million of series A convertible redeemable preferred stock and $50 million of series B preferred stock, that will be purchased by TPG Growth, and balance sheet cash.

Under the agreement, Uniwheels is being purchased for an aggregate equity price of about $715 million.

Closing is expected around the end of May, subject to customary conditions.

Net debt to EBITDA will be about 3.7 times at the close of the transaction.

Superior Industries is a Southfield, Mich.-based manufacturer of aluminum wheels for passenger cars and light-duty vehicles. Uniwheels is a Germany-based supplier and manufacturer of aluminum wheels for the automotive aftermarket.

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