The recycler in question has not been identified, but the financial institution said that the company operates two of the largest aluminium recycling sites in the UK and has a combined turnover of £14 million.
Millbrook said that the loan was to help them “overcome cash flow challenges”.
It added that the “prominent player in the aluminium recycling sector” came to it for help after facing mounting pressure from high-interest debt and a pressing need for working capital.
Leveraging physical assets
The companies reportedly agreed that a total for £4.2 million was needed: £3 million to refinance existing debt and the remainder to bolster cash flow and support day-to-day operations.
In a deal that took four weeks to arrange, Millbrook agreed to leverage the value of the company’s physical assets to structure a secured facility that offered both immediate relief and future flexibility.
The metals recycler has now been able to clear its high-interest debt, improve cash flow and reignite future growth plans including research and development and site expansion.
The two companies said that they are now exploring additional funding for future projects.
