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SeverCorr LLC
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Beginning in September 30, 2005 when GPP closed on an $880 million structured financing of equity and debt and continuing through late 2009 and the placement of an incremental $400 million of debt and equity financing, GPP, served as exclusive financial advisor to the newly created SeverCorr LLC ("SeverCorr") which built and operated the world's most advanced flat rolled mini mill with the above capital. |
- The SeverCorr transaction represents the largest U.S. greenfield project financing for a start-up steel company in the last 13 years and was awarded Project & Finance Magazine's prestigious "Deal of the Year" award.
- SeverCorr (a joint venture between SteelCorr LLC and OAO Severstal), is the first flat-rolled steel mini mill designed to supply exposed automotive grade steels.
- Utilizing its extensive network of industry contacts, GPP assembled a worldwide consortium of 25 financial and strategic investors for the SeverCorr project.
- During the four-year engagement period, GPP provided a wide range of specialized services to SeverCorr. GPP's services extended well beyond those typically provided by corporate finance advisory firms and included
- raising the necessary seed money to allow for the SeverCorr management team to first develop the project,
- assisting the management team in developing, positioning and articulating the project business plan,
- designing the capital structure,
- marketing every facet of the capital structure to both financial and strategic investors from around the world,
- structuring an extremely attractive equity participation package for the management team,
- negotiating a comprehensive incentive package with various government entities including federal, state, local and foreign government agencies -- the SeverCorr incentive package is one of the largest government incentive packages ever provided to a greenfield manufacturing project which included approximately $120m in upfront cash grants, loans, and loan guarantees and a tax incentive package valued at over $350m.
- structuring and negotiating the commercial contracts with SeverCorr's principal equipment suppliers resulting in extremely favorable payment terms and contract conditions which were readily embraced by the investment community, and
- arranging agreements with critical suppliers and product offtake partners.
The SeverCorr transaction demonstrated the full complement of services that GPP is capable of providing its clients. |
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Steel Development Company
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On July 18, 2008, together with several global, multi-US$ billion institutional investors and a management team of five seasoned steel executives, GPP formed Steel Development Company. Steel Development Company is building its business to create long-term value in the global steel industry by building a portfolio of greenfield minimills at competitive capital costs while employing some of the world’s most advanced steelmaking and processing technology. The company will strategically position its steel mills in markets where customers require a low-cost producer focused on timely delivery of quality products. GPP worked with Steel Development Company’s institutional investors to assemble a US$500 million equity commitment. These equity commitments will be deployed on a mill-by-mill basis alongside other forms of financing. GPP is currently working with Steel Development Company to put these additional forms of financing in place. |
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Pentad Advisory Group
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In April 2008, GPP professionals, utilizing their deep industry contacts and working together with the industrial construction sector’s most respected leaders, helped structure, form, fund and launch Pentad Advisory Group. Pentad now boasts worldwide recognition as the premier heavy-industry construction management consultancy firm playing a leading role in the design, construction and erection of the newest EAF and integrated steelmaking projects worldwide. |
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Severstal North America Inc.
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Following the successful experience at SeverCorr LLC, parent company OAO Severstal (“Severstal”), requested GPP’s assistance in structuring a transaction which would allow Severstal to complete its comprehensive US$1 billion mill modernization program at its other US subsidiary in Dearborn, Michigan, Severstal North America Inc. (“SNA”). Working together with SNA, GPP demonstrated a wide array of its capabilities including |
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- securing and structuring a long-term senior debt package including a combination of export credit agency and commercial loans totaling $250 million,
- upsizing SNA’s working capital facility from $175 million to $350 million, and
- negotiating with SNA’s equipment vendors with respect to maximizing the level of export credit agency loan-eligible content and improving upon payment and delivery terms and conditions initially proposed to SNA.
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Millennium Steel Public Company Limited
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GPP professionals, working with Siam Cement Public Company Limited ("Siam Cement"), one of the largest industrial conglomerates in Asia, designed and completed a highly successful three-way steel industry consolidation transaction. Specifically, GPP professionals advised Siam Cement on the US$500-million merger of its two wholly owned steel-making operations with those of NTS Steel Group Public Company Limited ("NTS"), creating Millennium Steel Public Company Limited. |
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| GPP professionals then assisted in listing the newly formed entity on the Stock Exchange of Thailand (ticker: MS). Concurrent with advising on the merger, GPP professionals advised NTS on its US$525-million debt restructuring, which involved creditor groups in Asia, Europe and North America. |
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Baosteel Group Corporation
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GPP professionals acted as exclusive advisor to Baosteel, China's largest steel manufacturer, on Baosteel's North American acquisition initiative. During this effort, GPP's professionals assisted Baosteel with evaluation efforts, automotive buyer assessments and transaction negotiations. |
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Handan Iron & Steel, Tangshan Iron & Steel, Benxi Iron & Steel
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The GPP team has assisted these leading Chinese steel manufacturers in obtaining Chinese central government approval for their facility expansion projects. |
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Bethlehem Steel now part of International Steel Group
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GPP professionals were advisors to the Official Committee of Unsecured Creditors of Bethlehem Steel now part of Arcelor Mittal (representing in excess of US$3 billion of debt claims) in the company's successful Chapter 11 reorganization and eventual merger with International Steel Group. |
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Kennametal Inc.
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Kennametal, with a market capitalization in excess of US$1 billion, is a global manufacturer and distributor of cutting tools, tooling systems, supplies and technical services. GPP professionals have advised Kennametal on a wide array of divestitures and capital raising transactions. |
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Steel Dynamics, Inc.
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Steel Dynamics ("SDI"), now one of the most profitable steel companies in the world, was formed by a group of former Nucor executives in 1993. GPP professionals structured and arranged SDI's initial US$385-million project financing and assisted in the placement and distribution of more than US$600 million of expansion financing. |
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TIC United Corporation
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GPP professionals were advisors to TIC in its Chapter 11 reorganization and led the sale of a number of TIC's subsidiaries including Atlas Foundry and Machine Company, Atlas International (China), W. Pat Crow Forgings, West Michigan Steel Foundry and Kropp Forge. |
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Gibraltar Steel
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In addition to assisting Gibraltar Steel with follow-on equity offerings, GPP professionals assisted the company with the structuring and private placement of senior and subordinated notes. |
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NSM Public Company Limited
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The GPP team assisted NSM, a start-up steel manufacturer in Thailand, on its US$650 million completion financing. This transaction represented the first global financing of a Thai-based company following the 1997 Asian financial crisis. |
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