Corporate Finance
Weil
Full Credential Description
Superior Industries International, Inc., a leading aluminum wheel supplier, faced significant financial challenges, including a high level of funded debt amounting to approximately $982 million, which included preferred stock. To address these issues, the company entered into definitive agreements to be acquired by a group of its term loan investors, including Oaktree Capital Management. This strategic move involved converting a substantial portion of the term loans into equity and extinguishing the preferred stock, which was aimed at positioning the business for long-term growth within the global wheel industry. As a result of these transactions, Superior Industries is set to reduce its funded debt by nearly 90%, bringing it down to approximately $125 million. This substantial reduction in debt is expected to enhance the companys financial stability and operational flexibility, allowing it to better serve its customers and suppliers. The transactions are anticipated to close in the third quarter of 2025, pending customary closing and regulatory approvals, after which the company will transition to being privately held.