Stout has announced that its client, Majestic Steel USA, Inc. (“Majestic”), has successfully raised $287.5 million in financing from a syndicate led by White Oak Commercial Finance, including Eclipse Business Capital and Stonebriar Commercial Finance.

Majestic is a Cleveland-based steel service center in the prime, flat-rolled steel sector. Over the last 40 years, Majestic has become a market leader in coated steel product with annual shipment volumes greater than 500,000 tons. Majestic made several acquisitions in 2020 and 2021 and developed a national service footprint with coast-to-coast coverage. In 2022, Majestic sought to refinance its current facility to better align with its collateral base, which includes a state-of-the-art “greenfield” facility in Arkansas.

The financing will provide additional flexibility to Majestic and fund strategic growth initiatives.

Mike Krakovsky, Managing Director at Stout, said, “We are excited to have facilitated this financing with a syndicate of lenders and a structure that better aligns with the nature of Majestic’s business and positions it to capitalize on its significant near-term opportunities.”

Stout’s Head of Debt Capital Markets Jeff Zolkin added, “We were mandated to negotiate the best lending terms for Majestic and its management team to support Majestic’s strategic initiatives, and we feel the Company is now well-positioned going forward.”

“We look forward to Majestic continuing to build upon its strong legacy as an industry leader in the specialty steel supply, processing, and distribution services sector,” commented Stout Managing Director Mike Jenny, Head of Metals and Specialty Manufacturing.

Stout’s Kevin Mayer, David Kim, Andrew Masotta, Jack Kedroski, Will Albert, and Ravi Jagabattuni assisted in the execution of the transaction.

CR3 Partners served as financial advisor, and Vorys, Sater, Seymour and Pease and Jones Day served as counsel to Majestic.

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