PNC Bank a member of PNC Financial Services Group Inc. announced a $25 million deal with Chicago based Keywell Metals LLC. The funds assisted in the acquisition of one of their former businesses which became SGK Ventures LLC controlled by Texas based private equity firm Property Equity and providing ongoing working capital. The transaction was a $20 million in asset based revolver (PNC gets the business if unpaid) and a $5 million term loan.
Keywell Metals LLC is a supplier of recycled materials, high-temperature alloys and titanium metals in North America with operations in Pennsylvania, New York, North Carolina and Atlanta. They filed for bankruptcy in September of last year citing weak nickel prices and lack of stainless steel demand and were purchased by Property Equity for $15.8 million in December.
Creditors also filed suits against them for $65 million in December where a portion of the company was renamed SGK Ventures and the other operations continued to use the name Keywell Metals LLC. The demand of this industry is a major obstacle. They are subject to government regulations in production and large supply of the product.
PNC Financial Services is headquartered in Pittsburgh. PNC (NYSE:PNC) is a financial services company providing services to individuals, small businesses, corporation and governments. Their financial services include retail banking, asset management, corporate and institutional banking, residential mortgage and BlackRock (investment management firm). Their bandwidth is national and also provides client services in a few international markets.