Acme United entered into a new $65 million syndicated credit facility with HSBC Bank USA and City National Bank (CNB), a U.S. subsidiary of Royal Bank of Canada (RBC).
The new facility, which replaces the company’s prior $65 million credit facility with HSBC that was scheduled to expire on May 31, 2027, is intended to provide liquidity for growth, acquisitions, dividends and other business activities. The new agreement expires on July 15, 2029. The new credit agreement contains customary pledges of collateral, covenants, representations and warranties and other terms which are materially similar to those of the prior credit agreement. HSBC will serve as the administrative agent for the syndicate.
The new facility continues and enhances Acme United’s longstanding relationship with HSBC and adds CNB as a new syndicate lender.
“This new facility gives us greater financial flexibility to support our growth plans,” Paul G. Driscoll, vice president and chief financial officer of Acme United, said. “We’re pleased to extend our relationship with HSBC and to welcome CNB to our banking group. This will also strengthen our existing relationship with RBC in Canada.”
Walter C. Johnsen, chairman and CEO of Acme United, added, “Bringing a second top-tier global bank into our credit facility diversifies our funding sources and positions us well to continue executing on our growth initiatives. We appreciate the continued support of HSBC and are excited to begin a new relationship with CNB.”
