A. M. Castle, a global distributor of specialty metal and plastic products and supply chain solutions, announced it has increased its revolving credit facility from $100 million to $125 million.

The $25 million commitment comes from existing lenders under the company’s credit facility. As of December 31, 2013, the company did not have any outstanding borrowings on the revolving credit facility and had $31 million of cash balances.

According to an 8-K filing dated December 21, 2011, A.M. Castle entered into a new $100 million senior secured asset-based revolving credit facility with a lender group led by Wells Fargo as administrative agent and collateral agent. Other lenders in the deal included: Bank of America, Regions Bank and U.S. Bank.

The company said the increased facility size is currently supported by its borrowing base, and is fully available to the company to borrow against, less customary reserves.

The company maintains the ability to exercise an additional $25 million under the revolver’s accordion feature in the future. The expansion of the credit facility does not impact any other terms or conditions within the credit facility, and the company is currently in compliance with all financial covenants.

Scott Stephens, chief financial officer of A. M. Castle, commented, “Our objective when assessing our capital structure is to enhance the liquidity and flexibility of the Company. This action provides us with access to low cost revolving credit capacity, which reduces the Company’s overall cost of capital and assists in our commitment to de-lever the balance sheet. In 2013, we purchased and retired $15 million of our senior secured notes on the open market using cash balances. The expansion of the credit facility provides the company with additional availability to continue to actively purchase and retire our senior secured notes on the open market while preserving liquidity.”