MAXAM
MAXAM takes out a syndicated loan for 280 million euros
2013.01.03
Press room - News - MAXAM takes out a syndicated loan for 280 million euros
This refinancing provides the necessary financial stability for strategic investments and international expansion.
The solvency ratios established in the two credit lines signed in 2007 and 2010 have been fulfilled.
MAXAM has taken out a syndicated loan backed by a group of financial institutions led by the agent banks BBVA, Banesto, HSBC, Barclays and Bankia for an amount of €280m. The loan has attracted a considerable participation from the institutions forming the syndicate as a result of the financial soundness shown by MAXAM, its well-consolidated international expansion and the good prospects in the markets and sectors in which it operates, especially the mining industry. The confidence inspired by MAXAM among the financial institutions signing this syndicated loan is for four clear reasons:
- International leadership: 2nd producer worldwide of civil explosives for mining and public works
- Fulfilment of its business plan and resilience against the international crisis (€989m turnover last year – ending 31 March 2012 – with EBITDA of €118m)
- Business synergies between its areas of activity (civil explosives, initiation systems, sporting cartridges, nitro-chemicals, defence and technological developments in the environment and security)
- Fulfilment of the solvency ratios set in previous syndicated credits signed in 2007 and 2010.
Currently MAXAM is an industrial and service group consisting of more than 140 companies and 6,500 workers, with manufacturing plants in 45 countries and its products distributed and marketed in more than 100 countries. In 2012 MAXAM celebrated the 140th anniversary of its establishment by Alfred Nobel in 1872.
Another point reflected in the loan document is the guarantee perceived by the financial institutions in the commitment to MAXAM’s day-to-day management by its managerial and technical team, the company’s main shareholder with 55% of its capital, centred on the figure of its Chairman, José F. Sánchez-Junco. The rest of its capital is held by Advent International, with 45%.
MAXAM's international leadership
MAXAM’s highly successful international expansion strategy over the past few years has established it as the European leader in the manufacture and sale of explosives for civil use and initiation systems for mining, quarrying, infrastructure building and public works.
This leadership has been reinforced in recent years in fast-growing countries or regions such as Russia, Central Asia, Africa or Latin America. Worldwide MAXAM Civil Explosives is the second producer and the third firm by sales, leading major growth markets such as Russia and Central Asia.
Its major projects in Asia notably include the work being done at Oyu Tolgoi (Mongolia), where MAXAM has been selected as sole supplier of blasting products and services for one of the biggest gold and copper mines in the world. Moreover in China, at Pingyi in Shandong province, it is building an initiation systems plant due to start production in the first half of 2014.
Through the MAXAM Chem business area, MAXAM is also the top player in the European nitro-chemicals industry, both in the distribution of commodities such as nitrocellulose and ammonium nitrate and in the development of components for automotive diesel to help reduce CO2 emissions to the air.
Through various brands, and with plants in Spain, the UK and the US, MAXAM Outdoors is a world leader in the manufacturing and marketing of sports cartridges for shooting and hunting.
Its defence arm, MAXAM Defence, supplies products and services to armies and defence ministries in more than 30 countries, and over 90% of its turnover is in international markets. MAXAM Defence is also a European leader in demilitarisation services (destruction, recovery and recycling of all types of munitions and explosives, and decontamination and cleanup of military land or conflict areas).
Moreover its technological developments in the fields of the environment and security have made MAXAM Energy an expert advisor in these areas. It is worth noting its holding in a wind farm through which MAXAM supplies to the electricity grid more power than consumed by all of its plants in Spain, and a pioneering soil recovery project that has turned the wasteland around its facilities in Burgos province into a young wood with more than 1.5 million trees planted.
For further information:
Lucas Ferreira
MAXAM
Communications Director
91 722 01 00
lferreira@maxam.net
