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Wells Fargo Completes Flexible Capital Structure for Southwire

August 27, 2021, 07:20 AM
Filed Under: Finance News

Wells Fargo Commercial Capital, part of Wells Fargo & Company, announced it has provided an integrated working capital financing solution to Southwire Company, LLC, one of North America’s leading manufacturers of wire and cable. The innovative financial structure of asset-based lending and supply chain finance optimizes capital deployment for growth and sustainability.

The capital structure provided by Wells Fargo includes a $1 billion sustainability-linked asset-based facility which, combined with an existing supplier finance program, allows Southwire to maximize its working capital flexibility, and enhance its day-to-day management of commercial activities.

“Consummation of the sustainability-linked facility is a significant milestone toward aligning our continued success in achieving our growth strategy and our goal of eliminating 100 percent of greenhouse gas emissions from our operations by the end of 2025 — what we’re calling Carbon Zero,” said Guyton Cochran, Southwire’s Executive Vice President and Chief Financial Officer.  

“Structuring this unique, integrated working capital solution for Southwire gave us the opportunity to demonstrate how our various asset-based lending and supply chain finance solutions work together to help meet a broad range of our clients’ evolving strategic priorities,” said David Marks, head of Wells Fargo Commercial Capital. “We are very pleased to expand our relationship with Southwire to help support their continued growth and sustainability goals.”

Southwire Company, LLC is one of North America’s largest wire and cable producers. Southwire and its subsidiaries manufacture building wire and cable, metal-clad cable, portable and electronic cord products, utility products, OEM wire products and engineered products. In addition, Southwire supplies assembled products, contractor equipment and hand tools.

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