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Alfametal International BCN

presented by October Spain

€1,150,000

6.5%

60 months

B

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location

Location

Rubí, Spain

activity

Activity

Commerce

Presentation of the company

Created in 2014, ALFAMETAL INTERNATIONAL BCN SL. is active in the recycling of metal scrap sector. The company, managed by Marcos Manzanares, has 30 employees and is based in Rubi.

The company’s main activities are:

  • Recovery, separation, classification, treatment and transformation of ferrous waste (iron and steel).
  • Commercialization of the recycled ferrous waste.

The company works with a relatively concentrated client base of big steel producers.

Project Description

The company requests a loan of 1.150.000 € over 60 months to finance the acquisition of specialised machinery for the fragmentation and classification of electric motors. This project will be realised next month.

This project is a Flexible Bridge Loan, an amortizable loan with a standard commitment for the first 9 months and the possibility of early repayment at no cost for the remainder of the loan term, even in the event of refinancing by other financial institutions.

The amount offered on the platform is limited to 563 500€, which is in line with the regulatory limits.

Like all projects presented to individual lenders on Ocober, it is co-financed with institutional investors, sophisticated investors, and October management, subscribers to the October Fund.

Analyst’s Opinion

With a turnover of 21 534 385 € in 2017 and an experienced team, the company has a good track record combined with a two-digits operating margin.

Increase in sales and margins in 2017 is related with the start of the activity in the Canary Islands. The forecast is based on the performance in 2018, confirmed by an Audited Interim report.

The borrower has an excellent repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 2.02 and a good financial structure, with a forecast net debt / ebitda ratio of 2.52 and a net debt / shareholder equity of 273%.

The analysis of the project leads to a credit rating of B and a 6.5% annual interest rate.

*The multiple of FCCR at 2,02 means that the company has a safety margin of 102% relative to its ability to repay its credit maturities.

The expert opinion is given as an indication on the basis of the elements provided by the project holder and information from our databases (External data provider). This opinion is only an element of reflection in the decision making of a lender to participate in the financing of a project.

Strong points:

  • Good historical performance based on diversified client base.
  • Excellent repayment ability with a forecasted FCCR of 2.02.
  • Growing sector due to an increase of the environmental regulation on hazardous metal waste.

Point of caution:

  • Potential risks associated to a rapid growth.