Arbomex, Water Capital & Chrysler
Selected Transaction – Senior and Mezzanine Debt Placement: Arbomex and Water Capital
Background
- Mexico's leader in precision cast and machined parts was seeking to finance a project to serve as Chrysler exclusive supplier of cam shafts.
- To fulfill its commitment with Chrysler, the company neededto expand its production facility to more than double in size.
PC Capital’s Role
- Secure the necessary resources for the new project and determine the optimal financing structure.
- Value the operations of Arbomex taking into account their market leadership and growth potential to create an ideal partnership.
- Design the financing structure and terms and conditions of the deal including leasing, senior debt and mezzanine financing.
- Conduct a competitive process to secure the resources needed to fund the project.
Injection of debt by Water Capital, will allow Arbomex to strengthen its position as one of the leading companies in the industry of precision parts cast and machined.
Results
- Funding secured to implement 100% of the project with Chrysler and have the resources to continue expanding.
- Partnership with one of the most important financial institutions worldwide.
- Immediate access to resources to continue implementing new projects, buy their minority shareholders and continue long term expansion.