Celsa Group UK in Emergency Financing Provided by UK Government
July 8, 2020
Cleary Gottlieb acted as counsel to Celsa Group UK in an emergency financing provided by the UK Government Department for Business, Energy & Industrial Strategy as well as amendments to the group’s existing financings.
The transaction involved the negotiation of a bespoke facility agreement, a security package for the UK Government, and certain ancillary arrangements. Additional commitments and certain amendments were made to the company’s existing facilities to address the liquidity constraints and other issues arising as a result of the COVID-19 pandemic.
The transaction is the first UK bespoke deal outside of the UK Government’s established COVID-19 business interruption schemes and is the first deal designed to help companies seen as strategically important.
Celsa Group UK is owned by the Spanish steelmaker Celsa. It employs 1,600 people across the United Kingdom with its main sites in South Wales supplying steel to the construction industry. Celsa only produces steel from recycled scrap metal. It is the largest scrap metal recycling company in the United Kingdom and the only domestic producer of reinforcement bars used to strengthen concrete. Celsa UK has supplied steel to many iconic projects in Britain (such as Crossrail, HS2, Hinkley Nuclear, and Heathrow terminals). Cleary previously acted for Celsa Group UK in its refinancings in 2013 and 2018.