The private capital arm of PGIM, Pricoa Private Capital, has invested in industrial cooperative ULMA Group as part of an agreement focused on refinancing the Spanish group’s short-term debt and supporting growth for its various businesses.
The deal comprises a $100 million (€90.8 million) shelf facility with an initial draw of just over half a million of senior unsecured notes – a debt that takes priority over other types of debt in bankruptcy.
According to Joshua Shipley, managing director of Pricoa Private Capital, management were at first cautious to proceed with the investment due to the nature of the cooperative.
“But with time, we learned the complexities of their non-traditional cooperative structure, and developed a strong connection and mutual respect with them,” Shipley said.
The deal forms part of ULMA Group’s own strategy to provide itself with a flexible financial structure that adapts to its expansion needs of its cross-border businesses.
ULMA Group initially became aware of Pricoa Private Capital last year, following a partnership with a separate private company in the north of Spain, Shipley said.
Iñaki Gabilondo, head of ULMA Group, said: “Diversifying our funding is the first step in a number of positive changes for ULMA.”
ULMA Group operates has a presence in over 80 countries. Its cooperatives have more than 5,200 employees and members worldwide.
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