Universal Stainless Announces Amendment of Credit Agreement
Universal Stainless & Alloy Products announced that it has amended its credit agreement with PNC Bank serving as administrative agent for a syndicate of banks. The amended credit agreement lowers the company’s interest rates and provides additional flexibility in the structure of its credit facilities, within the credit agreement. It also extends the maturity date to March 19, 2017 from its current maturity date of August 18, 2016.
The amended credit agreement increases commitments under the senior revolving credit facility to $105.0 million from $75.0 million while reducing the senior secured term loan facility to $20.0 million from $40.0 million. Under the Amended Credit Agreement, the Company’s interest rates are reduced by 50 basis points. The reduced senior secured term loan will reduce the Company’s quarterly principal payments to $750,000 from $1.5 million and extends the start date of scheduled payments by one year to July 1, 2013.
“In addition to its financial benefits, the amended credit agreement reflects our progress over the past several months with the start-up of our North Jackson operation,” commented Dennis Oates, chairman, president and chief executive officer.
“The credit agreement was initially entered into in August 2011 for the acquisition financing and start up of our North Jackson operation, which was a greenfield operation at the time. Since then, we have completed the build-out of the Vacuum Arc Induction Melting (VIM) facility, installed two Vacuum Arc Remelting (VAR) furnaces, and completed and ramped-up the new radial forge at North Jackson. With these major start-up milestones achieved, our new Credit Facilities can be used to fund Universal’s future capital investment and growth strategy,” he added.
Universal Stainless & Alloy Products, headquartered in Bridgeville, PA, manufactures and markets semi-finished and finished specialty steels, including stainless steel, tool steel and certain other alloyed steels.