Oaktree Capital and Other Term Loan Lenders to Acquire Superior Industries, Reducing Superior’s Debt by $857 Million

Paul, Weiss is advising an ad hoc group of Superior Industries International, Inc.’s term loan lenders, including Oaktree Capital Management, on their acquisition of the Michigan-based aluminum wheel supplier. As a result of the transaction Superior’s $982 million in funded debt will be reduced by nearly 90% and the company will become privately held. Superior, a global leader in the wheel industry, serves the European vehicle aftermarket with the brands ATS, Rial, Alutec and Anzio.

Under the terms of the deal, Superior will merge with an entity indirectly owned by the term loan lenders, which will convert up to approximately $550 million of their term loan claims into 96.5% of the new common equity of the surviving entity. Holders of Superior’s common stock will receive approximately $3.1 million in cash, and its preferred stock holders will receive approximately $6.2 million in cash and 3.5% in new common equity. Superior’s existing revolving credit facility and factoring facilities will remain in place on their current terms or be refinanced before the acquisition closes, expected in the third quarter of 2025, subject to customary closing conditions and regulatory approvals.

The Paul, Weiss team includes restructuring partners Brian Hermann and Jacob Adlerstein; corporate partners Samuel Welt, Kenneth Schneider, Sung Pak and Christodoulos Kaoutzanis, and counsel Mary-Ann Awada and Lyudmila Bondarenko; tax partner Robert Holo; antitrust partner Ross Ferguson and counsel John Magruder; executive compensation partner Lawrence Witdorchic; and litigation partners Andre Bouchard and Andrew Ehrlich.