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Challenge Mfg. Company Arranges $230 Million Senior Credit Facility

Tuesday, March 31, 2015

Challenge Mfg.

William Blair & Company arranged a $230 million senior credit facility consisting of multiple tranches of debt for Challenge Mfg. Company. The transaction closed on March 9, 2015, and highlights the leveraged finance and automotive industry expertise that William Blair brings to complex transactions.

Transaction Highlights

  • Fit with William Blair’s leveraged finance expertise and industry coverage model:  Challenge was attracted to William Blair’s significant debt placement capabilities and extensive network of potential capital providers, as well as the firm’s expertise within the automotive sector and industry coverage model.
     
  • Managing complexity:  Using its deep transaction experience, the transaction team successfully guided the company through complex negotiations with multiple constituents. The resulting capital structure positions Challenge to execute on its growth strategy.
     
  • Turnkey financing team:  William Blair committed a dedicated team of seasoned financing and sector specialists to the engagement. The deal team worked closely with Challenge to analyze its financing options, prepare offering materials, market to prospective lenders, provide guidance regarding key deal elements, and negotiate the final terms of the transaction.

About the Company

Challenge, an employee owned firm, is the leading manufacturer of modular assemblies and engineered metal-formed products to the automotive industry. As a leading automotive supplier, the company uses state-of-the-art design, engineering, testing, and manufacturing capabilities to produce a broad array of aluminum and steel modular parts that are critical to the structural integrity of the vehicle. Challenge operates across a footprint of strategically located, modern facilities in North America to serve as a Tier I supplier to multiple global automotive OEMs. The company is based in Grand Rapids, Michigan.

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