Weil, Gotshal & Manges LLP, a preeminent global law firm, is currently advising Superior Industries International, Inc., a prominent global supplier of aluminum wheels, on its significant acquisition by a consortium of term loan investors spearheaded by Oaktree Capital Management. This strategic move is set to reshape the financial and operational landscape of Superior Industries.

This acquisition is not just a simple change of ownership but a strategic overhaul, as it will slash Superior’s funded debt dramatically, from about $982 million to just $125 million—a reduction of nearly 90%. This financial restructuring will see around $550 million of term loan claims converted into 96.5% equity in a newly formed parent entity, drastically altering the company's shareholder structure. The deal also stipulates the elimination of preferred stock, with common shareholders receiving approximately $3.1 million in cash. Preferred stockholders will be compensated with $6.2 million alongside a 3.5% stake in the new equity framework.

Scheduled to finalize in the third quarter of 2025, the merger is contingent upon regulatory approvals and customary closing conditions. Post-acquisition, Superior will transition into a privately held entity, with its existing credit and factoring facilities expected to either remain intact or be refinanced in preparation for the closing.

President and CEO of Superior, Majdi Abulaban, expressed enthusiasm about the acquisition: "This transaction marks a pivotal milestone. Our term loan investors are doubling down on their belief in our vision and capabilities, ensuring we have a solid financial base to pursue long-term growth. With an unmatched portfolio and strategic advantages in the industry, along with a newly optimized balance sheet, we are poised to expand our market reach among existing and potential OEM customers."

Robert LaRoche, Managing Director at Oaktree, also commented on the deal's strategic benefits, noting the increasing demand for Superior’s high-quality, cost-effective manufacturing solutions despite recent challenges. "We are excited to support the Superior leadership team as they steer towards this promising new phase," he added.

The legal expertise for this complex transaction is provided by a cross-disciplinary team from Weil, led by M&A partners Michael J. Aiello and Amanda Fenster, along with Restructuring partners Gary Holtzer and Lauren Tauro. The comprehensive team includes specialists across various fields including Capital Markets, Banking & Finance, and more, ensuring a holistic approach to the acquisition process.

Superior Industries, founded in 1957 and headquartered in Southfield, Michigan, is a stalwart in the design and manufacturing of light-vehicle aluminum wheels with facilities across North America and Europe. Weil, Gotshal & Manges LLP, established in 1931 and based in New York, continues to be a leader in legal services across the globe, advising on high-profile corporate matters with a commitment to excellence and client service.