Pacific Cast Parent Gains $50 Million for Value Creation

Sept. 3, 2008
New long-term financing will fund internal expansion, acquisitions

Ladish Co, Inc. has secured $50 million in long-term financing through a private placement of senior notes with several institutional investors. The senior notes bear interest at a 6.41% annual rate, and a maturity date of September 2, 2015. U.S. Bank and SPP Capital Partners LLC advised Ladish on the private placement.

Cudahy, WI-based Ladish is a holding company for Pacific Cast Technologies, a diecaster in Albany, OR; Ladish Forging, also in Cudahy; ZKM Forging in Stalowa Wola, Poland. It also includes Diecast Tooling in Racine, WI; Stowe Machining Inc. in Windsor, CT; and Valley Machining in LaCrosse, WI.

Ladish CFO Wayne E. Larsen did not identify any specific purpose for the new capital, though he said the notes, together with a revolving line of credit, will “allow us the flexibility to continue creating value for our shareholders through internal expansion and acquisitions."

Ladish recently agreed to pay $59 million for Chen-Tech Industries, an Irvine, CA, producer of near-net shape forgings in titanium, nickel, and iron-based super alloys, mostly for single-aisle, regional, and business aircraft manufacturers.

Also, Ladish is completing a melt shop expansion at Pacific Cast Technologies in Oregon, and has announced plans to build a new diecasting operation in Mexico. However, the latter project has reportedly been delayed by delayed by site-selection problems.