Signature Group Holdings Inc. on Monday launched a $300 million private placement to fund its acquisition of Global Recycling and Specification Alloys.

The Sherman Oaks company said in October it is acquiring the business unit from Aleris International Inc. of Beachwood, Ohio. for $525 million. The sale includes 18 metal and alloy recycling-service facilities in North America and six in Europe.

Signature will pay $495 million in cash, with the remainder in preferred shares. The $300 million placement is being secured by fixed assets and other collateral of Real Alloy, the subsidiary completing the acquisition. The notes will be offered to qualified institutional buyers and some individual foreign investors.

Global Recycling is one of the largest independent aluminum recycling companies in the world. It serves the automotive, aerospace, packaging, building and construction industries.

Signature shares closed down a penny to $8.75 in over-the-counter trading.


A vacant industrial building near Van Nuys Airport was picked up by Rexford Industrial Realty Inc. for $24.3 million, the company announced on Monday.

The Los Angeles real estate investment trust acquired the 203,000-square-foot building at 7900 Nelson Road for the equivalent of $120 a square foot in an off-market transaction from an unidentified seller.

The REIT plans to renovate the building and reconfigure it for two tenants. It features eight dock-high loading doors and clearance heights of 28 to 30 feet.

Rexford specializes in owning and operating industrial property in Southern California infill markets. It has interests in 89 properties totaling about 9.3 million rentable square feet and manages an additional 20 properties totaling about 1.2 million square feet.