A. M. Castle closed an agreement for new $112 million secured term credit facilities with Highbridge Capital, Whitebox Advisors, Corre Partners and Wolverine Asset Management, which is $12 million greater than was previously announced.

The company had announced its commitment letters with the lenders on November 4, 2016 as it seeks to repay outstanding borrowings and support the continuance of letters of credit, totaling $53.2 million under the its former revolving loan and security agreement with Wells Fargo Bank as lender and administrative agent.

The company’s new credit facilities will take the form of senior-secured, first-lien, term loan credit facilities. Commitments under the former credit agreement have been terminated and liens granted to the collateral agent pursuant thereto have been released in full.

The credit facilities will bear interest at a rate per annum equal to 11.00%, payable monthly in arrears. The outstanding principal amount of the credit facilities and all accrued and unpaid interest thereon will be due and be payable on September 14, 2018.

President and CEO Steve Scheinkman commented, “These new credit facilities will enhance Castle’s liquidity and better position the Company to advance its ongoing efforts to capitalize on market opportunities. We are excited to have the support of the financial institutions funding the credit facilities.”

In connection with the funding of the credit facilities, the lending financial institutions were issued warrants to purchase an aggregate of 5,000,000 shares of the common stock of the company, pro rata based on the principal amount of each institution’s commitment in the credit facilities.

A. M. Castle is a global distributor of specialty metal and supply chain services, principally serving the producer durable equipment, commercial aircraft, heavy equipment, industrial goods, construction equipment and retail sectors of the global economy.