Ferroglobe closed a five-year, $100 million North American asset-based revolving credit facility, involving Ferroglobe’s subsidiary, Globe Specialty Metals and its wholly-owned North American subsidiaries, as borrowers, and Bank of Montreal, as lender and agent, on June 30.
At closing, there was no drawing under the ABL revolver. Going forward, potential drawings under the ABL revolver will be used for general corporate purposes.
The ABL revolver is subject to a borrowing base comprising North American inventory and accounts receivable of Globe (and certain of its subsidiaries) and bears interest of SOFR plus a spread of 150-175 basis points depending on the level of utilization.
“The addition of the ABL revolver marks an important step in our overall strategy to bolster the company’s balance sheet and liquidity,” Beatriz Garcia-Cos, CFO of Ferroglobe, said. “The covenant lite nature of the new facility provides the company the necessary flexibility to execute its near-term plan and the cost of the ABL reaffirms the company’s strengthening credit profile. We thank BMO for their commitment to Ferroglobe.”
